The glass manufacturing industry has high energy consumption and large volume of finished products. Therefore, energy, railway transportation and heavy oil of key raw materials occupy an important position in the production cost of the industry. Since the mid-1990s, domestic heavy oil, hydropower and railway transportation prices have continued to rise sharply. In 1997 alone, the prices of heavy oil, hydropower and railway transportation fees rose by 6.68%, 9.46% and 18% respectively, which led to a doubling of glass manufacturing costs. Even the leaders of this industry, Luoyang Glass and Yaohua Glass, were also at a loss or near loss in 1997.
The cost rises too fast and the market tends to be saturated
The oversupply of the market is also one of the difficulties currently faced by the glass industry. According to statistics, due to market demand, there were 20 float glass production lines in China in 1993, which increased to 60 in 1997, and the new productivity exceeded 80 million weight boxes. The design capacity of various glass production lines exceeds 200 million weight boxes. However, the good times are not long. Due to the macro tightening, the adjustment of the downstream construction industry and automobile manufacturing industry has restricted the demand for glass. Statistics show that in 1997, the actual output of the domestic glass manufacturing industry exceeded 168 million weight boxes, and the actual market demand did not exceed 1.4 billion weight boxes, which obviously exceeded demand.
Although the country invested a lot of financial and material resources in the past few years to optimize the industrial structure of glass, due to various reasons, the production lines that had been eliminated, such as Xiao Ping La, small calendering, and small upper lead, were re-produced in large quantities, seriously disrupting the industrial optimization. process. More seriously, some glass producers have reduced their costs and reduced their prices in order to reduce their inventory, causing glass prices to fall. Further increased the pressure on the market.
Due to the high energy consumption of glass production, with the rise of energy prices, energy conservation and consumption reduction has become the primary problem in the international glass industry. However, domestic production technology is backward, energy utilization rate and finished product rate are lower than the world level, which makes domestic glass products in a relatively unfavorable position in the international market competition.
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