Economic downward pressure, glass peak season still needs to be observed

This week, soda ash manufacturers started operating load 79.6%, an increase of 5.2% from last week.

Currently in the late stage of the soda ash maintenance season, the starting load may gradually pick up. The power outage in Henan has been eased recently, soda ash supply has increased, soda plants have sufficient orders, and prices of some manufacturers have risen slightly.

Float glass production enterprises have good profitability, their production capacity continues to expand, the consumption of heavy alkali has increased, and the stock of heavy alkali raw materials remains high. The demand for photovoltaic glass terminals shows signs of improvement and continues to receive attention.

The delivery warehouse inventory is still large.

The soda ash is in the later maintenance season, and the supply is expected to gradually recover. Float glass is highly profitable, and some production lines will be ignited in the second half of the year. The demand for photovoltaic terminals is showing signs of improvement. Optimistic about photovoltaic installations in the second half of the year, and continue to pay attention to market conditions. At present, the soda ash repair capacity is gradually restored, and the demand is also steadily increasing. Expectations for glass production growth still exist, and soda ash is still optimistic in the long-term. It is recommended to buy on dips instead of chasing highs.

Glass: The daily melting volume of float glass increased by 600 tons/day compared with last week. At present, glass production is at a historical high, and the glass production capacity from January to July increased by 10.3% year-on-year. There are still some production lines still on fire in the market outlook. This week, the domestic float glass market transaction volume rebounded slightly from the previous period, and manufacturers’ inventories continued to increase. Manufacturers do not have much pressure for the time being, and most of them focus on stabilizing prices.

The supply of glass is slowly increasing. The peak glass season was delayed by the epidemic, market transactions improved slightly, manufacturers’ inventories continued to increase, and prices were relatively stable. This year is in the real estate completion cycle. The demand for glass in peak season is strong, and real estate sales growth may gradually weaken, but it does not affect the overall trend of glass demand growth. The current market situation is more complicated, the epidemic is still continuing, economic data is weaker than expected, the macro sentiment is weak, and the glass market has improved slightly. It is still necessary to observe the peak season situation, mainly in the short term.