ShouChuang Futures: Deep processing orders continue to decline, glass futures price hits new intra-year low

In the spot market, the spot price of float glass is 1,104 yuan/ton, unchanged from the previous trading day. In the Shahe market, some large panel prices were slightly raised by 10 yuan/ton, with average market trading activity and cautious procurement from midstream and downstream for rigid demand. From the weekend to now, the East China market has not changed much, weak demand remains unchanged, enterprise shipments continue to face pressure, and spot trading sentiment is subdued.

Supply: Currently, there are 201 float glass production lines in operation and 93 lines under cold repair or shutdown in China, with a daily melting capacity of 146k tons. Last week, the average capacity utilization rate of the float glass industry was 72.63%, down 0.66 percentage points from the previous week. National float glass output was 1.0221 million tons, down 0.9% MoM and down 7.35% YoY. Total inventory of float glass sample enterprises nationwide was 146k weight boxes, down 384k weight boxes MoM, a decrease of 0.5% MoM, and up 10.09% YoY. This week, float glass production lines are operating smoothly, and weekly output is expected to remain flat compared with the previous week.

Demand: Last week, the average order days for deep-processing sample enterprises was 8.2 days, down 1.02% MoM and down 13.6% YoY. Orders in the float glass deep-processing industry continued to decline MoM. Raw sheet inventory was 9.2 days, up 0.33% MoM and down 0.5% YoY. Raw sheet enterprises face high inventory pressure, and coupled with the rainy season in the south, there is a strong willingness to actively destock and sell. Midstream and downstream remain cautious, mainly purchasing for rigid demand.

In summary, deep-processing orders continue to decline, and short-term glass futures prices are expected to fluctuate weakly. Attention should be paid to the implementation of environmental protection policies and changes in production lines in the later period. (Capital Futures)