8.2 | Jubo Glass Weekly Review (No.69): Futures & spot weaken together; low bounce fails to reverse bearish trend.

Weekly Trend of Glass Futures and Spot Prices (7.27-7.31)

Glass futures trended weakly with fluctuations this week; the FGM main continuous contract declined by RMB 25/ton over the week.

Glass spot prices drifted lower amid volatility this week, with the national average market price down RMB 10/ton week-on-week.

Weekly Analysis of Glass Futures and Spot Market

• Fundamentals

Supply side: One production line halted this week, leading to a slight drop in overall operating rate. Prices declined in multiple regions, transaction prices of spot glass kept sliding, trading activity failed to improve, and industrial inventories rose by 0.08% compared with last week.

Demand side: Buying sentiment stayed muted; downstream buyers only purchased to meet rigid demand. Some producers cut prices to boost shipments and actively destock, with divergent production and sales performance across regions.

• Technical aspect

The main glass futures contract fluctuated weakly this week, hitting a high of 914 and a low of 865. After an attempted rebound at the start of the week, prices came under persistent downward pressure. A new periodic low was set on Thursday, followed by technical recovery at low levels on Friday, with the weekly price center moving downwards.

From a technical perspective, the weekly K-line closed as a medium bearish candlestick with a long upper shadow. Bullish attempts faced heavy selling pressure, and bears pushed prices to new periodic lows again. The small bullish candlestick formed at lows on Friday merely represented a technical rebound after declines, without signaling a bottom reversal. Daily K-lines alternated between bullish and bearish candles. Trading volume expanded during declines while lacking momentum for low-level rebounds, reflecting a lack of sustained bullish capital inflows. The moving average system maintained a full-cycle bearish arrangement. Moving averages of all cycles formed successive overhead resistance, and short-term prices remained below the moving averages.

• Market Outlook

Fundamentally, producers face shipment pressure and industrial inventories are hard to reduce. Glass spot prices have fallen consecutively, lacking momentum for a sustained rebound.

Technically, heavy resistance lies overhead. Without notable improvement in fundamentals, the rebound space will be limited. The effectiveness of low-level support on the downside requires continued monitoring.

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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