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The Annual Reports Of Many Glass Manufacturers Predict That The Glass Futures Market Continues To Rise

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A number of glass production enterprises issued annual forecasts, and their performance increased significantly year-on-year. Since 2022, the main contracts of glass futures have soared again. Many securities companies are optimistic about the future market of glass, believing that the growth of downstream demand and the contraction of upstream raw materials jointly push up the market prosperity. The performance of glass production enterprises increased significantly year-on-year.

The continuous supply side structural reform has achieved remarkable results. The expansion of glass application fields and the change of demand structure have promoted the improvement of the prosperity of the glass industry. Although the market confidence in the fourth quarter of 2021 was insufficient, the demand fell, the product price fell, and the price of main raw fuels rose, compressing the product profit space, the volume and price of the glass industry increased, and the overall profitability improved significantly. “In the future, we will continue to promote the development strategy of ‘one body and two wings’, adhere to the main line of high-quality development, adhere to lean production and refined management, adhere to the integrated operation of the industrial chain and differentiated marketing strategy, promote the construction of marketing capacity, promote the upgrading of brand culture, strengthen procurement management, continue to promote revenue and expenditure increase, and deeply tap management potential.”

In addition to architectural glass and photovoltaic glass, other types of glass products have also achieved good results, and relevant listed companies have reported good news to investors in their performance forecasts. Among them, CSG a announced that its net profit after non deduction is expected to be 1.2 billion yuan to 1.5 billion yuan in 2021, with a year-on-year increase of 122% to 185%. In addition to the traditional glass business, the overall performance of electronic glass and display devices business has increased rapidly year-on-year. China Jushi also announced that it is expected that the net profit of non deduction in 2021 will increase by 2.912 billion yuan to 3.883 billion yuan compared with the same period last year, with a year-on-year increase of 150% to 200%. The main reason is that the demand in the downstream application field of glass fiber is strong, the volume and price of roving products of the company rise at the same time, the export sales volume has increased significantly, and the sales price of electronic cloth has increased significantly. Shandong fiberglass announced that it is expected to realize a net profit of non deduction of 491 million yuan to 576 million yuan in 2021, with a year-on-year increase of 205.73% to 258.90%, mainly due to the strong demand in the downstream application field of fiberglass, a large increase in foreign trade exports, and the rise in the sales and prices of fiberglass yarn.

The glass futures market continues to rise. In 2021, glass manufacturers achieved good performance. Can this growth momentum be continued in 2022? GF futures believes that the price of glass spot has been continuously raised along with the disk, with an increase of 300 yuan / ton. Glass enterprises have successively issued price increase letters on the fourth and fifth day of the ninth lunar month. Traders and deep-processing enterprises are actively replenishing. The overall bullish atmosphere in the market is strong. Traders hoard more goods and reluctant to sell them, because they are expected to continue to rise after the year. Nanhua futures said that the domestic float glass spot market price fluctuated upward, and the price of individual enterprises in North China rose by 30 yuan / ton after the festival. Downstream deep-processing enterprises have resumed work, and the demand has improved.

In recent days, securities companies such as Zhongtai securities, Minsheng securities, Everbright Securities and Huaxi Securities have released research reports and positively evaluated the 2021 annual performance forecast of Qibin group. Sun Ying, an analyst at Zhongtai securities, said, “the pressure period of glass production has passed. According to the prediction of Zhongtai real estate group, the growth rate of real estate completion in 2022 is expected to reach 3.8%. At present, the production capacity of glass production lines with a kiln age of 8 to 10 years and more than 10 years accounts for 13.7% and 14.1% respectively. The cold repair of production lines at an advanced age in 2022 will lead to the contraction of glass production capacity supply, and the price is expected to remain at a good level.” He also said, “the production expansion of photovoltaic glass is progressing steadily, and it is expected to create a second growth curve. The company actively distributes emerging fields such as energy-saving glass, electronic glass and pharmaceutical glass. Considering the long-term growth of the company, it maintains the rating of ‘overweight’.” Deng Sheng, an analyst in the chemical industry of CSC, said that the main raw material of glass is soda ash. At present, the main futures of soda ash have risen continuously, and are currently close to 3000 yuan / ton. The inventory of the industry has accelerated to be removed, and the national inventory fell by 140000 tons month on month in the week before the Spring Festival. Therefore, it is judged that the overall trend of the soda ash industry in 2022 is still good. “On the supply side, 1.3 million tons of Lianyungang Soda Industry has withdrawn, and it is a deterministic event that the soda ash industry will continue to shrink year-on-year in 2022. On the demand side, the completion of real estate in 2022 is expected to increase by 5% to 10%, and the period from 2022 to 2024 is still the intensive production period of photovoltaic glass. The contraction of supply and the rising demand jointly promote the prosperity of related varieties.”

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