7.26 | Jubo Glass Weekly Review (No.68): Glass fluctuates widely at low levels to form a bottom; weak spot market caps rebound.

Weekly Trend of Glass Futures and Spot Prices (7.20-7.24)

Glass futures climbed amid fluctuations this week, with the main FGM glass contract gaining RMB 18/ton within the week.

Domestic glass spot prices kept falling, and the national average price dropped RMB 15/ton week-on-week.

Weekly Analysis of Glass Futures and Spot Market

• Fundamentals

Supply side: One production line shut down and another underwent product conversion on Thursday. The comprehensive operating rate continued to decline. The market remained weak; prices fell to varying degrees across most regions. Overall sales-production balance stayed roughly flat, and industrial inventories decreased by 1.07% week-on-week.

Demand side: Enterprises only made rigid-demand purchases. Some producers cut prices to clear stocks, lifting market sentiment moderately. General trading activity was fair.

• Technical aspect

The front-month glass contract traded within a range this week, hitting a high of 918 and a low of 889. Average daily trading volume remained elevated throughout the week, reflecting sharp divergence between bulls and bears. The current rebound was mainly driven by short investors taking profits and exiting, with limited sustained inflows of new long capital.

Technically, the K-line pattern shows wide sideways oscillation at low levels after a sharp slump. The weekly candlestick closed as a small bull candle with a long lower wick. Prices rebounded partially after hitting new lows, and bearish momentum weakened marginally. However, no reversal signals such as bullish engulfing or sustained high-volume large bull candles emerged. The market has shifted from one-sided declines to bottom-building consolidation at low levels, while the medium-term downtrend is not yet over. The moving average system maintains a full-cycle bearish arrangement, with short-term moving averages acting as strong resistance.

• Market Outlook

Fundamentally, sustained recovery in glass spot demand is unlikely. Inventories edged down but remain generally elevated, and manufacturers are eager to destock, leaving room for further declines in spot prices.

Technically, range-bound low-level volatility will persist in the short term, and oversold correction continues, yet the large-cycle bearish structure remains intact.

Disclaimer: Market investment carries risks. Please make independent and prudent decisions. All data and information herein are sourced from public online materials. The opinions are only for industry discussion and do not constitute investment advice. We assume no liability for any actions taken based on this content.

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