Glass futures goods : the way to avoid risk

(China Glass Network)The sheet glass is likely to appear on the market at the end of June. China is the biggest productive country in the world as continues 23 years ranked first. We had produced 914 million weight cases last year. As the biggest market of production and consumption, Chongqing has more 1000 related companies including glass production, glass deep-procession, and glass trade. But their main product is fiberglass. Chongqing Yuhu’s float glass assembly line was the first float glass line in Chongqing. Sheet glass is mainly applied in architecture and automobile; fiberglass, as the substitute of metal, is widely used in electronic area. The change of sheet glass price has not directly impacted on the Chongqing’s production enterprises, but the waste glass, as the main material of fiberglass, its price also changed with the sheet glass which also reflects some kind of connection between them. The production of float glass also reflects the trend of sales market. As the biggest sale market, more and more float glass assembly lines are gathered in Chongqing. With the high speed development of city construction, the demand of architectural float glass shows geometrical speed growth. Many famous auto production enterprises as Chang an, Lifan, Jialing were located in Chongqing, so the float glass meets a great demand. From that, we can know the deep-procession and trade companies of float glass are sensitive to the price of sheet glass. Though the number of the production and export is up year by year, the development mode of the whole industry still belongs to extensive mode, which has the over- production and unreasonable industrial structure problems. And with the cooling down of home real estate and automobile industry, the consumption begins to shrink, the relationship between demand and supply begins to be uneven. From the second half of 2011, some enterprises were in non-profit state. The same situation also appeared in Chongqing, the glass production enterprises, the deep-procession enterprises, and trade enterprises were all affected. They wanted to use the futures goods to avoid the risk.