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The price of falt glass shows obviously rises: Jan.- Oct., 2007, output of flat glass is growing by14.6%, the supplying is relatively stable. The price of flat glass breaks through the previous price, in June, the price of clear float glass is obviously rising. Till to Sep., the main varieties float glass price is increasing by 20-25% to the beginning of this year.
The profit of flat Glass industry is obviously rising: the average gross margin is rising from the lowest point of 1.97% in March, 2006 to 15.6 % in August, 2007; During Jan. to Aug., 2007, the total profit of flat glass industry amounted to 1.454 billion yuan, up 244.84%, while during the same time of last year, it was a loss of 957 million yuan.
The reasons of glass price's increasing are mainly due to the price rising of fuel raw materials. Although in recent years the glass industry has been actively improved the production process to reduce cost to face market pressures, the results are still tiny and not play a very good role in reducing the burden. Presently glass industry is mainly depending on trade associations' coordination to resist the market's vicious competition, though currently self-regulation organizations of industry is operating well, but this can't last long time, what we need more is the government’s policy to strictly control the blindness extending of flat glass industries, so that to build a good competitive environment. |