Glass Soda Ash Will Remain Strong Growth In The First Quarter Of Next Year

Continued recovery in real estate investment, driven by the supply of soda ash and

glass industries accelerated, especially glass prices to record highs this year. We believe that prices will raise the amount of these two industries to actively promote the formation of the company's performance,

But given the current high price of glass and may face adjustments in future real estate, soda ash and glass prices continue to rise in power is limited. Specific to the company's performance, we believe that the driving force of emerging real estate, soda ash and the first quarter of next year's performance will exceed expectations glass industry.

Glass prices high correction

Glass and soda ash industry from the current production situation, the growth rate is better than soda glass. As of October this year, soda ash production totaled 15.59 million tons, up is still negative, ie -1.21%, but this year an increase of 9,10 months respectively 9.24% and 3.15%. The flat glass production in October this year reached 50.24 million weight cases, an increase of 2.5%, the fastest growth rate of 8,9 months of this year. We believe that the recovery of real estate investment makes the demand for glass gradually expanded, in order to stimulate the production of soda ash glass and upstream. Since the existence of supply and demand gap, the glass prices record highs this year, as of the end of October, 3mm, 5mm, 10mm Float glass prices to 80.04 yuan / weight boxes 73.98 yuan / weight box and 79.87 yuan / weight cases, respectively, compared with early an increase of 39.88 percent, 37.22 percent and 50.13. We believe that the release of the glass supply will continue in the fourth quarter of this year, its price will continue to remain high.

It is noteworthy that the price of soda ash did not show significant increases, according to WIND IT data, beginning of soda costs about 1,300 yuan / ton, and then have up to 1570 yuan / ton, but then have been 1,300 yuan / ton down fluctuations until the end of November, its price is 1260 yuan / ton. Overall change is not significant. We believe that steady growth in soda ash production to maintain low prices due mainly to significant overcapacity in the formation of a greater price pressure.

Soda valuation obvious advantages

This year, all A shares rose 77.6%, while applications million soda ash industry and glass manufacturing industries rose 114.98%, respectively, and 132.73%, significantly better than market performance. We believe that the performance of the glass industry, mainly due to real estate super pull, and soda ash industry, mainly from the rapid expansion of glass production capacity.

According to WIND IT statistics, from early 2004 until December 18, 2009, the overall method to TTM and remove negative, soda ash industry average price-earnings ratio of 16.31 times, 73.07 times for the glass industry, the overall chemical industry is 22.81 times. In contrast, sodium carbonate plate valuation even have the advantage. Specific to listed companies, according to studies, soda ash in the double-loop technology, Shandong Haihua, the three friends chemicals of concern.

For the glass industry, from the valuation, the current does not have the advantage, we expect the fourth quarter of this year, corporate profits should the glass will reach nearly three years of high and continue until the first quarter of next year. But taking into account the possible adjustment of property and the future cost factors, estimated that the flat glass business in the second quarter are high profitability or down.

Glass Soda Ash Will Remain Strong Growth In The First Quarter Of Next Year

By: erenber

POST COMMENT

How To Decide Whether To Get Reading Glasses Made Or Buy Them Readymade Is Short Term Rental For You? High Tech Glass – The HUD Device Adding Inches To Your Penis: Breaking Down The Most Popular Methods Important Facts About Revitol Short Term Rental Vs Long Term Rental Folding And Compact Reading Glasses Are Convenient Getting to Know the Different Short Term Rental Laws Glass Industry To Enter Integration Of Infrared Vs Traditional Saunas The Differences Rhinoplasty - 4 Standard Reasons Doctors Perform The Procedure Importance Of Courtship Period 2 Pasos Para Recuperar A Tu Pareja Que No Puedes Ignorar