The China Building Materials Federation reported that the architectural technical glass industry has continued its trend from the previous year, with robust production driven by a rapid recovery in demand for photovoltaic cells, real estate, automobiles, computers, and communications. In the first half of the year, national production of flat glass above designated size reached 510 million weight boxes, a year-on-year increase of 10.8%. Production of tempered, laminated, and insulating technical glass reached 430 million square meters, a year-on-year increase of 22.4%.

At the same time, the industry's economic performance has rebounded significantly. From January to June, architectural technical glass enterprises above designated size achieved operating revenue of 182.48 billion yuan, a year-on-year increase of 37.7%, total profits of 26.92 billion yuan, a year-on-year increase of 140.1%, and a sales profit margin of 14.8%. Among these, flat glass enterprises achieved operating revenue of 55.36 billion yuan, a year-on-year increase of 46.2%, total profits of 12.12 billion yuan, a year-on-year increase of 155%, and a sales profit margin of 21.9%. Technical glass enterprises achieved operating revenue of 127.12 billion yuan, a year-on-year increase of 34.3%, total profits of 14.81 billion yuan, a year-on-year increase of 129.2%, and a sales profit margin of 11.7%.

Since the beginning of this year, flat glass prices have risen significantly. Data shows that in June 2021, the ex-factory price index for flat glass industrial products reached 147.1, up 11.2% month-on-month and 74.1% year-on-year. A representative from the Industry Department of the China Building Materials Federation analyzed the reasons for the price fluctuations:

First, changes in the production and sales structure of flat glass have occurred. The production and sales proportion of high-quality flat glass for photovoltaic, automotive, low-emissivity, and electronic glass has increased. Its price is more than double that of ordinary architectural flat glass, leading to an increase in the average price of flat glass.

Second, steady growth in market demand. In recent years, flat glass production and sales have rebounded significantly, driven primarily by demand for flat glass for photovoltaic applications. Since the beginning of this year, my country's stable economic recovery has also led to a significant increase in demand in major glass markets.

Third, the sharp rise in raw material prices has increased glass production costs. As one of the main raw materials for glass production, the price of soda ash has risen from around 1,300 yuan/ton in the fourth quarter of last year to around 3,200 yuan/ton currently. Furthermore, rising prices for raw materials such as natural gas and sand and gravel used in glass production have also increased the production cost of glass products to a certain extent.

The Ministry of Industry and Information Technology's Raw Materials Industry Department recently held a video conference on flat glass prices. The conference noted that in recent years, supply-side structural reforms in the flat glass industry have achieved positive results. The industry has strictly implemented capacity replacement policies, significantly alleviating overcapacity, steadily increasing production, and significantly improving profitability.

A representative from the Industry Work Department of the China Building Materials Federation stated that various measures should be implemented to coordinate upstream and downstream supply chains, promote the establishment of a price adjustment mechanism in the architectural technical glass industry that aligns with supply and demand, and ensure stable price fluctuations.