Overcapacity in flat glass

Overcapacity in flat glass At present, domestic flat glass exports are being staged with a "very bad" market, which highlights the increasingly serious overcapacity caused by disorderly expansion and the severe situation in which the risk of trade barriers in the international market continues to increase.

According to the latest statistics from Qingdao Customs, in the first 10 months of this year, the export volume of flat glass in Shandong Port was 44.46 million square meters, which was an increase of 2.5% over the same period of last year; it was worth 150 million USD, down by 12.3%; the average export price was 3.4 USD per square meter. It fell 14.4%.

It is understood that the main reason for the increase in the price of flat glass exports is the overcapacity caused by disorderly expansion in the country. Due to the lax review of glass production line construction in some regions, some companies have used flat glass production for the construction of “high-white, ultra-thin” and “solar energy” high-tech declarations, resulting in a large amount of production between 2010 and 2011. New capacity production line. Because most of the current domestic glass manufacturing companies produce homogeneous products, and the overcapacity is becoming more serious, some companies have been aggressively reducing prices and promoting price promotions in order to increase sales and reduce inventory, leading to chaotic industry orders.

At the same time, due to the general increase in the price of raw materials for glass production during the same period (heavy oil, soda ash, coal and other price increases are over 30% year-on-year), the production cost has continued to increase, which has brought tremendous difficulties to the production and operation of enterprises.

It is worth noting that with the continuous expansion of exports, the risk of trade protection is also increasing, leading to the continuous shrinking of the international market for flat glass. From 2010 to 2011, the Philippines, India, South Africa, Australia, Brazil, Ukraine, South Korea and other countries have taken anti-dumping investigations or special safeguard measures against China's flat glass.

Obviously, to make flat glass exports “not bad”, the relevant departments must be strict. They must strictly implement the national macro-control policies, resolutely shut down production lines that do not meet the requirements of environmental protection and energy conservation and low-level redundant construction, and strictly eliminate backward production capacity to curb Flat glass production capacity has blindly expanded. At the same time, we should actively encourage independent enterprises to innovate independently, strengthen the glass deep processing technology and new product R&D and production, and increase product value. In addition, we should actively play the role of organization and coordination of industry associations, guide enterprises to export in an orderly manner, and actively respond to foreign anti-dumping lawsuits.

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