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Blind expansion glass enterprises lead to overcapacity

Entered since 2015, the glass market start to mediocrity, low market price shocks, the upside is difficult, flat glass industry is difficult "to its former glory," glass production capacity surplus collisions with relatively weak downstream demand, combined with the state of flat glass industry control strength continuously strengthen, cracks in the glass business faces a major test.

On the supply side, blind expansion glass enterprises lead to overcapacity, market difficult to digest. Industry as the sources of energy, resource consumption, flat glass production continuity is strong, capacity control is relatively difficult, emit smoke in the process of production at the same time, a large number of pollutants such as sulfur dioxide and nitrogen oxides, has a significant influence on the environment. Infrastructure construction in recent years, thanks to the national key development, as an important infrastructure building materials, flat glass industry rapid development momentum, in the middle of 2014 peaks in production capacity reaches 161980 tons, up 14.94% from a year earlier. In 2015, due to the market as a whole excess capacity, enterprise competition pressure increasing, only four months before cold production line up to 14, rehabilitation and new ignition 10, nissan can net reduction of 2100 tons, the overall capacity is compressed, but it is still difficult to alleviate the current industry overcapacity problem.

In terms of demand, real estate accounts for more than 75% of the glass, has been the consumption of glass. According to the national bureau of statistics data show that in April 1 - to open our country building area of 357.56 million square meters, fell 17.3% year on year, completed housing area of 212.1 million square meters, fell 10.5% year on year. Relatively weak real estate market, small glass demand.

Affected by the increasingly serious contradiction between supply and demand, the enterprise long-term general shipment, inventory pressure increasing, glass demand years later also does not appear many enterprises are looking forward to "a little high," the overall inventory is rising. Wuhan in central China's hubei province as an example, the selection of long, the three gorges in hubei, hubei million jun and hubei akihiro as sample enterprise, since entering the 2015, business inventories are at much higher, the capacity of the sample weighted ratio rose to 50% by the beginning of the current 50%, inventory problems become an important factor inhibiting central China glass market price upward. As a result, the market price is difficult to uplink, parts of flat glass price in calendar year "low", enterprise pays increasing difficulty.

At present, strengthen environmental governance issues for flat glass industry has become a new breakthrough point to solve the problem of overcapacity glass state. Since last year, with the thorough development of the country's energy conservation and emissions reduction related work, the provincial department of environmental protection have been questioning the local flat glass enterprise, "Texas regent case" as new "environmental law" after the implementation of the domestic first in view of the environmental public interest litigation case behavior of air pollution, the focus of production capacity, the environment in hebei province to the shahe does not conform to the industrial policy, overweight or substandard enterprises put forward rectification within a time limit, the pollution and strengthen supervision, for the good and bad are intermingled, blind expansion of flat glass enterprise is a wake-up call. Through strict controls the enterprises discharge index, shut down substandard housing, backward enterprises as soon as possible, alleviate the current severe overcapacity in the glass industry and optimizing the existing industrial structure, to do the advantages of enterprises, develop and expand, make it have the ability to "go out" to develop foreign markets. Glass industry economic, social and environmental sustainability, corporate responsibility is more important than mount tai.