1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In Q1, the supply side of float glass continued the production capacity contraction cycle dominated by cold repairs, with daily melting volume reaching a four - year low. However, the expectation of复产 and high inventory suppressed the futures price. The demand side was characterized by limited policy support, in - depth real estate adjustment, and low downstream orders. The inventory showed a structural feature, and the cost side had differentiated fuel trends, with coal - made dynamic cost becoming the marginal cost for futures pricing. - In Q2, the profit elasticity on the supply side and the inventory destocking rhythm will be key variables. For the demand side, focus on the verification results of "Golden March and Silver April" demand and the actual implementation effect of the "guaranteeing the delivery of buildings" policy. If demand improves marginally and supply contracts actively, inventory destocking will drive price recovery; otherwise, the industry will continue the "weak supply and demand" pattern [3][50]. 3. Summaries According to the Directory 3.1 Demand Side: The Strength of the Peak Season is Uncertain, and Policy Effects are Crucial - Macro - level policies set a "stable growth" tone, but there is a time lag in policy transmission. Terminal demand recovery is weak, and new construction area has a long - term downward trend. The real estate supply - demand relationship changed in 2021, and glass demand is expected to trend down in the next 1 - 2 years. - In Q2, if real - estate completion improves marginally in April and "guaranteeing the delivery of buildings" projects are concentrated for delivery, glass demand may pick up short - term. However, there are risks such as policy implementation falling short of expectations and high - temperature rainy seasons interfering with construction [8][9]. 3.2 Supply Side: Production Capacity Adjustment is Dominant, and Pay Attention to the Profit Inflection Point - The float glass industry is in the "break - even to slight loss" range. In Q1, the number of operating production lines decreased, and the daily melting volume remained unchanged year - on - year. In Q2, if natural - gas - made profit turns positive, enterprises may accelerate复产; if coal - made profit turns negative, cold - repair scale may expand [13]. 3.3 Inventory Side: The Intensity of Inventory Destocking Depends on Demand - In Q1, the inventory showed a structural feature, and futures prices were significantly affected by inventory fluctuations. As of March 21, inventory increased compared to the end of last year. In Q2, if demand improves, upstream inventory may continue to be destocked, supporting futures prices to rebound; otherwise, inventory will accumulate again, and prices may decline [22]. 3.4 Cost Side: Coal - Made Dynamic Cost Provides Marginal Support - Currently, coal - made cost is the lowest marginal cost line. The influence of the cost side on futures prices in Q2 depends on fuel price trends, supply - side changes, and downstream demand recovery. If the supply reduction caused by cost increase is greater than the demand decline, futures prices may rise; otherwise, prices will face downward pressure and fluctuate around the coal - made cost line [33]. 3.5 Valuation Side: The Weak Basis Background Limits the Rebound Space - In Q1, glass spot and futures prices fell together. The basis fluctuated around zero, especially in Hubei where it was mostly negative, providing no upward elasticity for the futures market. The current deep contango structure has a rising near - month price and a gentler slope, indicating an improvement in the spot market [39]. 3.6 Market Outlook: Inventory Dominates Short - Term Fluctuations, and a Rebound with a Bearish Bias is the Main Trend - In Q1, the supply side was in a capacity contraction cycle, the demand side was weak, the inventory had a structural feature, and the cost side had differentiated fuel trends. In Q2, focus on supply - side profit and inventory destocking. - Strategically, consider a rebound around the coal - made dynamic cost line and a bearish view near the half - year and annual lines. Pay attention to support at 1000 - 1100 and resistance at 1400 - 1500. Mid - and upstream enterprises can conduct sell - hedging when the futures price is 10% - 20% higher than Hubei's spot price, and mid - and downstream enterprises can conduct buy - hedging when the futures price is below coal - made cost or significantly lower than the spot price. - In terms of rhythm, inventory dominates short - term fluctuations. From April to May, if inventory destocking exceeds expectations, futures prices may rise; in June, if inventory accumulates again, prices may decline to the 1100 yuan/ton cost line [50][51].