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Glass Industry: Arrange the Upstream Opportunity in the Fourth Quarter in 2009

Post Time:Jul 02,2009Classify:Industry NewsView:429

About 20% production capacity was shut down, which improved the supply-demand relationship in the float glass industry for a short-term and let the price of glass rebound when it was at the bottom, making the float glass industry turned into earn profit (very little). This situation will keep on in the latter half of this year. But the situation of the price’s inversion like in 2006-2007 will never appear again.

We found that the impulsion to expand the production capacity in glass industry was still very strong, but not the will to integrate the industry. As a result, the vicious circle can’t be cured effectively. Although glass deep processing is being improved recently and new develop direction is being extended, such as energy-saving glass and solar glass, it won’t obtain the effect in the short –term. Over capacity has often been the shackle for the industry healthy developing.

Risk Warning
How long can high-growth of fixed-asset investment sustain? Can new energy construction be controlled rationally? Will industry integration effectively curb the vicious competition?

Source: GlassInChinaAuthor: shangyi

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