浮法玻璃价格因情绪面上涨；基本面压力仍存-Greater China Materials_ Float glass price up on sentiment; fundamental pressure remains

Summary of Conference Call on Float Glass Industry Industry Overview - Industry: Float Glass - Region: Greater China Materials, Asia Pacific Key Takeaways 1. Price Movement: Float glass prices have increased due to improved market sentiment, with future prices rising from Rmb980/ton in early July to Rmb1307/ton as of July 24, 2025, driven by expectations of anti-involution actions [11][1][2] 2. Inventory Changes: Total inventory at future-spot traders rose from 0.7 million weight cases in late May to 2.16 million weight cases currently, while traditional float glass inventory decreased from 60.6 million weight cases in mid-June to 53 million weight cases [11][1][2] 3. Market Dynamics: Despite the price increase, demand remains muted, with order days from processing plants at a multi-year low of 9.3 days, indicating a mismatch between supply and demand [2][3][1] 4. Profit Margins: The slight recovery in spot glass prices has led to a marginal improvement in margins for glass producers, although fundamental pressures persist due to high supply levels [1][2][3] Company-Specific Insights 1. Major Players: Companies such as Xinyi Glass and Zhuzhou Kibing Group are expected to face earnings pressure due to the ongoing supply-demand mismatch and potential downside in float glass prices [2][1] 2. Maintenance Impact: Improved profits have led to the postponement of maintenance plans for some production lines, which could further exacerbate supply issues [2][1] Risks and Considerations 1. Downside Risks: The industry faces risks from weaker-than-expected demand in the property segment, potential sharp decreases in float glass prices, and margin squeezes from rising costs of natural gas and soda [19][1] 2. Upside Risks: Potential improvements in downstream demand, particularly from the property and automotive markets, could positively impact the industry [16][1] Conclusion - The float glass industry is currently experiencing a complex interplay of rising prices driven by sentiment and inventory dynamics, against a backdrop of muted demand and fundamental pressures. Major producers are likely to face challenges in maintaining profitability amidst these conditions.