Glass: Profit continued to rise in August and September

According to the price statistics calculated by relevant departments to some glass enterprises, the price of glass was increased rapidly in August. In August, the average price of float glass reached 72.98 yuan/weight box, chain rose 13.65 percent, down 4.41%. The average price of flat glass reached 65.73 yuan/weight box, chain rose 3.32 percent, down 1.29%. After 6 consecutive months of increases, the glass prices have nearly reached the level a year ago.

From the changes of soda ash price which is the main material of glass, though the price of soda ash risen in Q2, it still was lower than the same period in last year. The cost of glass was apparently at ease. The price of glass had nearly reach the last year’s level. Under the situation that the cost was apparently lower than the same period in last year, it was estimated that the profit in glass industry would turn better.
The change between demand and supply has made glass industry turn out the good trend that smooth production and sales, inventories fell and the price rebounded significantly. However, the rapid rising price also made the production and marketing rate fell down in August.

Estate industry recovery will support the demand of glass. Glass industry has hope to turn better. With the situation becoming better and better, over 40 glass production lines that had stopped production will be put into production again. Glass industry serious excess capacity before being shut down. Besides, the prices of soda ash, heavy oil, natural gas and other materials would be changed, which might increase the cost pressure of glass industry.