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Threat of northeast glass, market prospect is promising

The wind rustling xi xiao cold. This winter in the northeast of glass generous travel all the way, add a solemn and stirring, and through the shandong, east China, direct wuhan market, shocked by the glass industry, has always been turf pattern and clear glass market and the first wrinkle.

Has always been, sinotrans logistics cost is the glass of one of the bottlenecks. Radius of 500 kilometers, is traditionally recognized glass sales limit. From north to south, northeast, north China, shandong province, central China, east China, south China big six glass market each corner, no matter for a long time.

But property under dry, cake shrinking situation, building materials series varieties have fallen. The glass is one of the major building materials varieties, there are more than 300 production lines, production lines open kiln after eight years of time, in addition to the short cold repair can't stop, glass market oversupply and production side inelastic stampedes seems to be doomed.

According to the latest figures, November 1, 2014, liaoning, jilin, heilongjiang investment in real estate is cumulative growth of 15.9%, 19.7%, 19.7% respectively, as the only double-digit negative growth areas in the country. As after entering the winter, northeast housing starts depression crown of the country's most is in practice. Anhydrous dry river, the river needs serious atrophy, northeast glass inventory backlog serious it is not hard to see - "manufacturer's warehouse has not put." Some market participants said.

Hebei shahe a large glass manufacturer in the northeast has six production lines, the company said is bear the losses of 20%.

It is understood that a total of about 20 production lines for the northeast region, in the past two years new capacity nearly 78%, and there is no delivery factory library. And caused by a lack of downstream of the glass order, accompanied by each link money delinquencies, as of July last year, is the basic processing enterprises done last year and at the beginning of the end. Northeast glass "south fill" in the process, some entrepreneurs said export first to qinhuangdao, shandong, fujian, sichuan.

Relative to the northeast, the target region capacity is less, give priority to with shipping, shipping costs is in 80 yuan - 220 yuan, as long as the price can cover the freight, the northeast glass will exist the possibility of going out, but in the area of the glass production enterprise deep roots, stable customers, glass to be accepted by the local market in northeast China will be cheaper to endure. But 30 days of inventory for any glass enterprises are disastrous. In addition to the south, northeast glass seems to have no other choice.

So why not choose to shut down?

Way companies don't want to stop, a glass production line construction costs 2, 300 million yuan, ShouLing 8 years, once the production means and tens of millions of yuan or even hundreds of millions of yuan. And after the spring 2015, northeast of the real estate market rebound may be glass to local market to oxygen, although may be more deadly stampede.

And many companies are strong, not to have to stop production. Wuhan a glass enterprise personage tells a reporter, even in the present profit significantly less, most basic in the normal operation of corporate profits more than 20%. Another note, are the details of the glass industry adhering to the "not crediting not borrow" operating habits, enterprise credit, no downstream customers rarely to bank loans, enterprise no reimbursement pressure, the current online glass production line most is their own capital investment, enterprises billion dollar cost of a production line, visible glass companies in previous years accumulated a lot of capital in the bull market. At least, in terms of money, most enterprises psychological support for solid.

Third, there is other way - the price cut down.

At worst, you can "suffer", wait for someone else to stop. On a smaller scale, money is nothing, gas production line more enterprises become the a run on the target.

And no matter how, before the Spring Festival, in addition to a small number of had winter inventory digestion, northeast glass seems to only south, south!

A person close to the northeast three or four line of real estate market, according to people in 2014 basic give priority to in order to digest inventory, some new buildings. Some new buildings rarely means glass demand fell sharply.

According to glass in the markets, the price of glass market of northeast China in 700 yuan/ton, hebei shahe region in 960 yuan/ton, in central China in 1200 yuan/ton, the highest in southern China about 1300 yuan/ton. For northeast glass have bear losses of psychological preparation, looking south of thin oxygen more advantageous than local shut down.