2007 Chinese Glass Market Research Report

2007 Chinese Glass Market Research Report

In September of 2007, the glass prices have hit a new high level since 2003 in China. In September 2007, the average price of float glass was 78.7yuan (RMB)/WB, rose 6.3 yuan /WB than last month; up by 13.9 yuan (RMB)/WB than the same period last year, up 21.51% year-on-year.

The reasons of the higher prices were: (1) the increased prices of the raw materials prices (2) a few manufactories dominated the industry, and manipulated the price (3) the higher export price (4) balance between supply and demand

But, in September 2007, the sales volume and production of glass declined. The output of glass of the key glass manufactories dropped by 1.475 million WB than last month, dropping by 5.14% than the last month; and the amount of sales reduced to 4,705,100WB, drop by 14.87% than the last month. The inventory of glass in the end of September has increased 645,000 WB. The accumulative sales of glass have grown 14.82% year-on-year.

The glass industry has benefited from the higher price which turning the glass industry from lose to profit. In August 2007,the accumulated sales of the key manufactories(43 factories) were 16.86 billion yuan(RMB), up 28.7% than the same period last year; the accumulated total profits were 637 million yuan(RMB)( same period last year was lost 1.005 billion), increased 47.17 million yuan(RMB)than last month. According to the Data of glass industry, the total profits of the whole industry were 1.454 billion yuan(RMB), up to 244.84%year-on-year, the same period last year was a loss of 957 million yuan(RMB).

1 Structure of glass industrial chain
2 Trend of glass prices
3 Production and sales

4 Analysis of glass industry Operation
4.1 Glass industry has turning from lose to profit, the profit has rebounded but has not reached the high level
4.2 Reasons of the growth of price
4.2.1 The rising prices of raw materials such as soda ash, heavy oil and coal, which have pushed the glass price up
4.2.2 A few manufactories dominated the industry, and manipulated the price
4.2.3 The advantage of export price
4.2.4 The balance between supply and demand
4. 3 Analysis of government policies which are the main elements to support the glass industry booming

5 Analysis of the key manufactories
5.1 Jinjing Technology
5.2 Fuyao Glass

Charts
Structure of glass industrial chain
Monthly prices of glass of the key manufactories in 2003- July 2007
Monthly growth rate of glass price year-on-year in 2004- July 2007
Output and growth of the flat glass in 2004-2007
Growth of the monthly sales and output of the key manufactories in 2005- July 2007
Monthly sales-output ratio and stock-sales ration of the key manufactories in 2005- July 2007
Total profit and gross profit ratio of Flat Glass in 2004- May 2007
Growth rate of Flat Glass in 2004- February 2007
Gross profit ratio and profitability of glass industry in 2002- May 2007
Cost of float glass
Average purchase cost of raw materials of the key manufactories 03Q1-07Q3
Concentration contrasting between the Glass industry and the cement industry
Export price/unit and growth in 2005- August 2007
Volume of export and growth in 2005- August 2007
Analysis of the consupation markets of Flat Glass
Growth of housing construction and glass in 1995- August 2007
Growth capacity of float glass 2001-2006 float glass
Norms of 3 to 5 year cycling in Flat glass.
Sales of Jinjing technology White glass
Sales income of Jinjing Technology White glass
Production base of Fuyao Glass automotive glass and float glass