The hottest glass enterprises expect the launch of

Glass enterprises expect the launch of glass futures

with the gradual clarity of the outline of glass futures, the attention of the glass spot market to this variety has also increased. Some spot merchants from the glass production and marketing sector told futures that the characteristics of the glass spot industry are suitable and relevant futures varieties need to be launched. The launch of glass futures is good for the spot market in terms of price guidance and risk aversion

"the glass spot market has two major characteristics, one is the low concentration of the industry, and the other is the contradiction between the rigid production capacity of glass and the cyclical demand." Yaomingshu, the sales director of Jinjing group, said that at present, the production capacity of the top ten glass groups in China only accounts for 55% - 57% of the whole industry, which is very low compared with other domestic building materials industries

it is understood that glass production capacity has increased rapidly in recent years due to technological progress and the reduction of production costs of glass production lines. In terms of output, China is already the world leader. From the annual output of 17520 heavy containers (20 heavy containers =1 ton) in 1999 to 73778 heavy containers last year, the output has increased by more than four times

the rapid expansion of production scale has not only caused low industry concentration, but also shortened the inspection period in the face of cyclical changes in demand, and the price fluctuations are unpredictable. According to the data, the lowest monthly average price of 5mm Fufa glass in 2009 was 968 yuan/ton in February, and the highest price was 1606 yuan/ton in December. The maximum fluctuation range within the year was close to 66%. In 2010, excluding the following three aspects, the figure was 23%

"for production enterprises, glass has the characteristics of continuous production and is not suitable for large-scale long-term storage. It is difficult for production enterprises to respond to market changes by adjusting inventory. Once the production line is ignited, no matter how the price changes, it must be shipped at the price when the contract is signed." Yaomingshu said that enterprises such as Siemens signed annual orders at the beginning of the year, which is also a habit of the industry. Moreover, glass manufacturers have no say in the prices of major ingredients such as fuel and soda ash, and glass manufacturers cannot transfer adverse fluctuations in product prices by adjusting cost prices

please make sure that this is only the case when the stool legs shine ultraviolet light. For glass processing enterprises, because their demand for products is more personalized, they usually have downstream orders first, determine the product specifications and quantities, and then purchase glass according to the agreed glass thickness for processing. Therefore, glass processing enterprises are "locked in one end", and their business risks mainly come from the price changes of flat glass

"after the withdrawal of glass futures, on the one hand, it can provide an accurate price signal for the market, on the other hand, spot enterprises also have an additional hedging tool." Tu Youjun, chairman of Zhejiang Daming Glass Co., Ltd., believes that spot enterprises can use the futures market to enrich their business methods, improve their profitability and enhance their competitiveness

"in the era of planned economy, as an important product, the price of glass is also controlled by the state." Chen Xiaofei, director of China Glass information operation, said that with the economic development, the state has gradually liberalized the production and operation control of the glass industry, especially the price control. "Now the product price of the glass industry is completely market-oriented. At present, the state has not carried out policy intervention and price control on the price of glass products."

in addition, experts said that at present, China's glass market policies are mainly reflected in production capacity construction, industrial structure adjustment and environmental protection, and have no limit on commodity flow, warehousing, transportation and other aspects. Therefore, there are no institutional obstacles that affect the stable operation of the glass futures market. Zhonghua glass () Department