A brief analysis of the development of China's glass industry
With the state's high attention to energy conservation and emission reduction in the glass industry and overcapacity, the market's attention to this variety is increasing. At present, most investors and business personnel know little about the glass industry. According to the recent visit research and in-depth tracking research, briefly analyze the current development status of the glass industry, so as to have a better understanding of the industry. With the state's high attention to energy conservation and emission reduction in the glass industry and overcapacity, the market's attention to this variety is increasing. At present, most investors and business personnel know little about the glass industry. According to the recent visit research and in-depth tracking research, briefly analyze the current development status of the glass industry, so as to have a better understanding of the industry.
Distribution characteristics of China's glass enterprises are mainly distributed in Liaoning, Hebei, Shandong, Jiangsu, Zhejiang, Guangdong, Fujian, and now there are some production lines in Inner Mongolia and Northwest China.
Due to its fragile characteristics and transportation limitations, the sales mode of ﹣ glass is divided into intensive marketing within 300km, selective distribution within 300800km and exclusive marketing beyond 800km.
That is to say, the sales radius of glass enterprises is 500 kilometers.
Many glass enterprises mainly depend on the demand place when they build their factories. With the large-scale development and construction of the central and eastern regions of China, glass enterprises have formed a considerable scale in this region.
Hebei (represented by Shahe District of Xingtai City), Shandong, Jiangsu and Guangdong glass production enterprises have been representative in the industry.
China's glass market has certain regional characteristics, but the circulation of glass markets in different regions is not exactly the same. Generally, when the price of glass in East China rises, goods will be transported to East China market due to the convenience of transportation; when the price of glass in this region falls, products will flow out of this market to reach equilibrium. Due to the inconvenient transportation and relatively closed market, the price of glass in Southwest China is quite different from other regions. In this way, we will see that at the same time, the price of glass varies from place to place. This geographical division is also due to the limitations of the glass itself.
Industry development characteristics
1. Relevant industrial policies glass industry is a high energy consumption and high emission industry. In order to respond to the Twelfth Five Year Plan and industry development of the glass industry, regulate investment behavior, prevent blind investment and repeated construction, promote industrial restructuring, and achieve coordinated and sustainable development, in recent years, the state has made and promulgated a series of policies, regulations and standards regarding the flat glass industry as one of the key industries of macro-control. Relevant departments successively issued several opinions on promoting the structural adjustment of flat glass industry, access conditions of flat glass industry, notice on eliminating backward production capacity of flat glass industry, notice on restraining overcapacity of some industries and guiding industrial construction and development through reconstruction, and access announcement of flat glass industry. Interim Measures for management. Guiding opinions of the State Council on resolving the contradiction of serious overcapacity.
Emission standard of nitrogen oxides for glass industry of Ministry of environmental protection, etc. Strict regulations have been made in the layout of production enterprises, process and equipment of glass industry, variety and quality of glass, energy consumption of glass industry, environmental protection, safety, health and social responsibility, supervision and management, etc., raising the entry threshold of glass industry and controlling the output and scale of glass industry.
In recent years, China's glass industry has developed rapidly, with significantly improved quality, significantly increased varieties, and rapid growth in flat glass production.
From the relevant historical data, we can find that the glass industry is in a period of prosperity, recession and prosperity. This cycle model can be simply described as: rapid economic growth, fixed asset investment, glass price rise, economic growth, overheated asset investment, slowing down glass price decline, economic recovery, stimulating rapid economic growth. 2004, 2007, 2010. 2013 is the flourishing period of glass industry.
The glass industry has a high dependence on the construction industry. According to relevant data, a typical 90 square meter residence uses about 20 square meters of glass.
This year, the state carried out a new regulation policy on real estate, and the demand of the whole construction market was greatly reduced, thus the glass industry entered a recession period.
For glass enterprises, the input cost of production line is high. A good glass production line costs hundreds of millions of yuan. A production line has 500 tons, 800 tons and 1000 tons. 1300 tons per day.
The general service life of the general production line is seven to eight years, and the good production line can reach ten to fifteen years.
Generally speaking, once the production line is put into production, it will be like an arrow to start a bow. Like other industries, it is impossible to control the production and inventory by arbitrarily stopping production and starting production. It must be produced 24 hours a day.
In the first half of 2014, the trend of high-end and low-end market of glass was totally different. Compared with the stable high-end market, the low-end flat glass market did not run well. The profit in April and may was only 460 million yuan, a decrease of 65% compared with the first quarter, mainly due to the price decline caused by serious overcapacity and inventory increase.
Under the condition of poor performance of the spot market, the futures market continued to be depressed, with the main contract positions falling and the price falling below 1000 yuan / ton.