The characteristic difference of industrial chain is the direct reason for the differentiation of glass and alkali.
The characteristic of glass is that the production line is difficult to stop. In general, after ignition, the service life of glass production line is mostly 5-8 years, and some even as long as 10 years. In the production process, there is no need to maintain production, only hot repair is needed. Once produced, the glass production line is almost scrapped, and the cost of cold repair or transformation of each glass production line reaches tens of millions to hundreds of millions of yuan.
This makes it difficult to adjust production according to market demand. At the beginning of the year, real estate construction was hot and glass supply was tight. At present, the market demand of the real estate downturn has dropped sharply, and the production line can only cover its nose and accumulate production, which cannot be reduced.
It is worth mentioning that the consumption of soda is always the same in the cycle of the whole real estate industry from prosperity to decline. This also explains the price difference between the two.
Inventory cycle characteristics: soda ash is unstable.
In addition to the production line problem, the unstable physical characteristics of soda ash is also a "long-standing problem" in the industry.
Soda soda should not be stored for a long time under simple conditions. In order to reduce the storage cost, soda manufacturers usually keep the storage period of one week or less. Because most of the heavy alkali in soda ash is directly transported to glass enterprises through direct sales, and even dealers sell it as an intermediary, the social inventory is low.
The soda inventory of glass companies is usually higher than that of communities. However, as we said before, the glass production line is not easy to cease fire, so a large part of the soda inventory of enterprises is safe inventory, and the actual operating inventory is also very small. Therefore, when the stock changes (especially when the stock price falls), the price of soda will fluctuate greatly.