Will the glass market usher in a busy season?

In the first half of the year, China has added 12 float glass production lines and 4 cold repair production lines, which together add up to 61.3 million heavy boxes. At the end of last year, the market had predicted that the glass industry will add 16 new production lines this year, adding an annual production capacity of 60.6 million heavy containers.

In the newly added glass production capacity, the growth in June accounted for one-third, including Xianning CSG Second Line, Qian'an Yaohua Line, Beijing Jingjing Technology (Marketing, Interrogation) Line and Taibo Fengyang First Line added annual production capacity A total of 18 million heavy boxes. “The concentrated production of the glass production line in June was mainly due to the optimism of the second half of the year for the company’s investment, and it is expected to be put into operation before the onset of the peak season.” Chen Xiaofei, an analyst at China Glass Information Network, said that, as a general rule, from the end of June, the glass market is gradually entering the peak season. .

“The downstream glass consumption areas mainly include real estate, automobiles, and exports, among which the real estate market is the largest consumer market for glass.” Zhang Jun, a researcher at China Securities, said that from the recent trend, housing and automotive demand It has risen and export performance has been relatively sluggish.

According to statistics, from January to May, the sales area of ​​commercial housing in the country increased by 35.6% year-on-year, and the cumulative area of ​​housing construction increased by 16% year-on-year. According to Zhang Jun, the newly-started area in the second half of the year will maintain an upward trend, and the upward growth of construction area will become inevitable. The increase in construction area will have a higher correlation with glass demand, which will increase the demand for glass. The real estate market is in the process of warming. With the arrival of “Golden 9 Silver 10”, the demand for glass will also reach its peak.

The car is the second largest source of demand for glass. In the first half of this year, the automobile market experienced rapid growth in production and sales. From January to May, the cumulative production and sales of automobiles both exceeded 9 million units, and the accumulated year-over-year growth rates reached 13.49% and 12.56%, respectively, which was 10.3 and 10.9 percentage points higher than last year. It is expected that annual sales will be realized. The growth rate is expected to reach more than 10%.

Zhang Jun believes that although glass exports are still sluggish, but under the support of the recovery of the two major downstream pillars of real estate and autos, the medium-term recovery of glass demand remains unchanged. The demand for glass in the second half of the year is expected to be further improved, thus promoting the upward movement of glass prices.