China Glass Export facing ever-biggest threaten

The Glass processing industry is facing the ever biggest threaten in August,2020,the main reasons are increased float glass price,increased shipping fees and decreased exchange rate.

The Covid 19 virus since January ,2020 has brought unexpected disaster to global glass industry.In the special times,float glass manufacturer have to break the produced float glass for re-production,because the glass processing companies didn’t start work,all the China domestic and export projects are stopped.During the past months ,float glass manufacturers had encountered ever biggest threaten .While Since May,most glass processing factories had started production and all the domestic projects and oversea projects re-started,in addition to the China government policies to increase the infranstructure construction, the glass requirement is increasing all the time since may.Float glass manufacturers had meeting in Zibo city on August 12th and decided to increase the glass price,by end of August 2020,float glass has increased by over 60% compared with May.

China Glass Export facing ever-biggest threaten

The 2nd factor is the decreased foreign exchange rate.The foreign exchange rate between USD and RMB reached the highest point 1:7.15 in June,while in the past 2 months,it decrease much to now 1:6.85,the 3% difference caused huge losses,especially for the running projects.Many low profit and low cost products,for example, float glass, laminated glass sheet,3mm tempered glass price has increased much and make it quite hard to compete in the international market,many small processing factories that relying on laminated sheets export has no business since June.

China Glass Export facing ever-biggest threaten

The 3rd factors is the increasing shipping fees.Shipping fees increased much since August.The main reason is,the virus in China is controlled and many factories are exporting in large scale,while most oversea factories are still closing.So all the containers going out from China but come back empty.To make  up the losses caused by the empty container,shipping fees increased almost 2 times that of original price.All the factories that quoted based on CIF terms and forwarders encountered big loss as the shipping fees increased to frequent.It changes almost every week and increase 15-25% each time.The trend may keep at least 6 months ,and in the next few months,it’ll be difficult to find empty containers to deliver because all containers are in oversea ports.

As China glass exporter,Morn also encountered big problem,but we keep the price for the signed contract even if we’re facing big loss,this is our promise to customers and keep the long term relationship with customers.

We’re young and dynamic team,hope every customers safe and have a good harvest in 2021.

Morn is your turnkey facade materials supplier,including building glass,aluminium profiles,aluminium windows&doors,kindly contact us if you have project that need help.

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