China float glass price rises greatly and is still on the rise. Compared to 1 month ago, the price has increased 50%. Analyst from an industry information website says that there are several reasons that caused this price increase. First is the real estate industry in China this year becomes strong. As more and more apartments and homes sold this years, the building industry consumes more float glass than before. Second reason is because there are about 40% of the float glass production lines are still closed because the weak economy years ago. So float glass is temporarily out of stock and looks like the demand is big and supply is small. Since price in the market is increasing everyday, free capital joined in for speculation too. He adds, though in the long run, the price should not be like this high, there is no potential to fall before end of this year.
Many factories who took orders at the beginning of the year suffered great loss due to this price increase. Many are increasing their selling prices as the cost is becoming higher and higher and no factory can digest such a big cost increase.