The price of Chinese float glass rises sharply, to a record high
At the end of January this year, a lots of glass manufactures notices on price adjustments. The increase was mostly 10-20%. The main reasons is that the prices of raw materials and photovoltaic glass have risen sharply and continue to rise.
Affected by the COVID-19, the demand for glass products in construction projects intensively broke out, and the float glass has seen retaliatory price increase. According to the China Glass Index, as of January 4, 2021, the index rose by 15.20% in the past three months. And if calculated from the end of April 2020 to the beginning of 2021, the China Glass Index has risen by more than 50%.
There are two main reasons why the price of glass will rise sharply in 2020. The first point is the contradiction between supply and demand. Due to the production capacity policy, glass supply has not been able to expand significantly. In recent years, it has been in a state of range fluctuations. The second point is the price increase of photovoltaic in the second half of 2020 has caused some float glass production capacity to shift to photovoltaic glass. Which has intensified the tight supply.
Therefore, it is expected that in the float glass market before the Chinese Spring Festival, partial adjustments may exist, but the overall price pattern may remain at a high level.