Shouchuang Futures: Inventory Accumulation Continues, Glass Futures Remain Weak

Spot market, float glass spot prices are at 1,169 yuan/ton, stable compared to the previous trading day. The overall trading in the Shahe market is acceptable, with small panel prices fluctuating little, and low-priced large panel sources mainly transacting.
In terms of supply, there are 204 domestic glass production lines in operation, 90 lines under cold repair or shutdown, with a capacity utilization rate of 71.77%, and the daily melting volume of float glass has decreased to 143.1k tons. Last week, the national float glass production was 1.0077 million tons, down 0.67% month-on-month and down 9.12% year-on-year.
The total inventory of sample enterprises for float glass nationwide is 143.1k heavy boxes, up 26k heavy boxes month-on-month and 0.03% month-on-month, and up 12% year-on-year. Overall, there has been little change in float line operations this week.
In terms of demand, the average order days for deep-processing sample enterprises nationwide is 6.86 days, up 12.30% month-on-month and down 16.30% year-on-year. The pace of enterprise resumption is slow, with overall operating rates remaining low, and new order intake far below expectations. Due to factors like tight funds, downstream procurement is mainly driven by immediate needs.
In summary, the supply and demand for float glass are both weak, and it is expected that short-term glass futures prices will remain volatile and weak. Attention should be paid to cost price trends, downstream order situations, and production line changes. (First Capital Futures)