HK Stock Market Move | FLAT GLASS (06865) falls more than 4% again, glass inventory clearance still required, industry may see significant losses in Q3.

FLAT GLASS (06865) fell by over 4% again, dropping by 4.14% to HKD 8.8 as of the time of writing, with a trading volume of HKD 40.457 million. In terms of news, according to Shanghai Nonferrous Metal Network, although domestic supply has started to decline recently, demand has slightly increased. Currently, the domestic supply and demand balance is slightly surplus, but with the cold repair and reduction of production capacity of some kilns in September, as well as the increase in demand brought by the production scheduling of components in September, it is expected that the domestic supply and demand balance of glass will change to a shortage in the near future. Glass will officially enter the destocking phase, but it will take some time to reduce glass inventory to a normal level. Huatai Research Report pointed out that the price of photovoltaic glass increased in April-May of 2024, coupled with a decrease in costs such as natural gas, most photovoltaic glass companies saw a recovery in profitability in Q2 compared to the previous quarter. However, considering the significant drop in the price of photovoltaic glass since Q3, the bank expects that the industry may suffer large-scale losses in Q3.