Will glass industry make a second bloom?

The prospect of glass industry is still gloomy and the public is sitting tight for market blossom.

Glass prices and cost are declining and hard to rebound in a short term, for mainly three adverse factors including the deflation of real estate industry, the sliding auto output and the global financial crisis. The previous rapid expansion of output enhances the stress of supply and demand. In general, the future of glass industry is still gloomy.

According to Essence Securities, flat glass industry also keeps low in market. As 70% of demand of flat glass is focusing on construction field, the reduction of new site area give a great impact on flat glass industry. Meanwhile, 20% of demand rapidly reduced as the growth rate of auto output slows down. In addition to the dramatic growth of output before, conflicts between supply and demand have been intensified. In 2009, there is a great possibility that prospect of glass industry remains in low post.