The price of any product is caused by two factors: supply and demand and cost. The reason why the rise of rebar drives the rise of glass mainly comes down to the problem of supply and demand. The main picture below is the monthly K-line chart of rebar, superimposed on the monthly K-line chart of glass. From the trend since 20 15, there is a strong positive correlation between the two, which verifies the statement that rebar drives the glass to rise.

K-line trend of rebar and glass in June

The relevance of product uses determines that the demand for glass and rebar has a strong positive correlation. Rebar is mainly used in houses, bridges, roads and other fields. More than 70% of glass is used in the fields of architecture and decoration. The intersection of the two is above the house. When the construction operating rate in the market is high, it will drive the demand for rebar. After the main building is completed, it will drive the demand for glass. There is demand conduction logic between them. When the building operating rate is low, the demand for rebar and glass will decrease, while when the building operating rate is high, the demand for rebar and glass will increase.

The operating rate of housing construction is the key

Rebar and glass are industries with high energy consumption and high pollution, and they are also key industries for supply-side reform and capacity reduction. A large number of backward production capacity passively withdrew. Under normal circumstances, the relationship between supply and demand is in a state of balance, and the fluctuation of housing operating rate will affect the balance between supply and demand of rebar and glass, and the price will fluctuate in the same direction.

Product cost is another main reason that affects price fluctuation. The fluctuation of the two prices also needs to be analyzed from the cost logic. The main costs of rebar are iron ore, power cost and coke, while the main costs of glass are energy, soda ash and sand. * * * is that they have a strong correlation with energy prices, and iron ore prices are mainly affected by market demand. So the cost also has the transmission logic of rebar demand. With the increase of demand, the price of iron ore rises, which will be transmitted to the increase of rebar cost.

Cost conduction logic of steel bar and glass

It can be seen that rebar pulling glass up is the appearance, demand is the fundamental reason for pulling rebar and glass prices up, and cost is also transmitted through demand.