Glass: Demand Increases; Price Follows

The overall of glass industry

Upstream price trend: the soda ash market is still in depression. The international crude oil price dropped recently and it may have an impact on fuel price.

The downstream demand trend:

The real estate: the first three quarter is not finished; the real estate market has finished its whole year goal in advance.  In factor, near the end of the third quarter, most real estate developers has finished its whole-year goal and meet the expectation. For this situation, the senior developers expressed their own opinion, the next quarter; they will not publish the new housing. They will pay more attention on the land market.

Conclusion:

The sale of regional market is in good situation, especially in East China region and North China region. The stock in these regions keeps declining and the sale-output ration is over 100 percent. In view of the current good sales situation, the manufacturers improve the sale price in succession. The main reason is the solid demand from real estate industry. In all, the rising of price is caused by the peak reason of the real estate market, not the fundamental change of demand level.