In May, the market demand for the glass industry improved slightly

In the end of May, the market demand of the glass industry improved slightly. On the supply side, a production line with a production stoppage of 500t/d due to the expiration of the kiln was added. The average price of glass (4mm) increased by 1.9 yuan/heavy box to 68.0 yuan/heavy box, which was 2.9%. With the general price increase, the overall profitability of the industry rose from the bottom to the profit level at the beginning of the year's price increase. It is expected that the gross profit margin will be 6.3% in the end of May, and it will increase by 3.0% from the previous quarter. The industry inventory for the current ten days was 27.16 million heavy containers, which was 1.5% lower than the previous month (4.11 million heavy containers), showing a continuous downward trend. The kiln shutdown rate was 26.7%, which was a record high.

We believe that for the last two consecutive months, the company’s inventory has continued to decline from 30.16 million heavy containers to 27.16 million heavy containers. The recent signs of acceleration indicate that demand has indeed improved. With the recent price increase by manufacturers, market confidence has been boosted and it is expected that short-term The trend of internal price increases will continue to spread from south to north, but the pace and pace still need to focus on subsequent changes in demand, and it is expected that downstream acceptance of Chengdu will be relatively limited.

The earnings from the increase in average price during the current period rebounded to a higher level at the beginning of the year. We believe that it is still too early to judge the trend reversal, and we still need to pay attention to changes in demand.