Glass Industry: New Measures in the Latter Half of This Year

As expected, the price of float glass in Q2 bounced back up and the industry profitable was significant improved. The glass industry began to turn losses to profits.

After The price of float glass increased rapidly, we estimated that the price had pressure to continue to rise. The reasons are as follow: (1) supply: with the improvement of industry profitable, over 40 production lines started to work again. The capacity of supply had a certain pressure; (2) demand: real estate had less new constructive area in the latter half of last year, which let the real estate have problems.

We expected the industry could come a new round of spring in 2010: (1) supply: most enterprises were based in recovering the production. The pressure in 2010 would be low; (2) demand: the current recovery of real estate would let the new constructive area increase. It estimated that the new need of glass would be formed in the early 2010.