The decline in glass prices across China from May-September has adversely affected demand for zirconia-based refractories. The glass price index was 77.3 in June; a y-o-y decrease of 8.7%, and 9.7% compared with the previous month. The average price of float glass in June was 64.39 CNY, a y-o-y decrease of 16.8%, and 6.4% compared with May. The average price of coloured glass was 75.15 CNY, a decrease of 9.3% y-o-y and 6.1% compared with that in May. There were 253 float glass production lines in August, with a combined daily capacity of 135,000 tonnes, a y-o-y increase of 13.1%. Production per day is in the region of 122,000/tonnes, excluding production from suspended lines, a y-o-y increase of 15.23%. This new additional production is 1,700/tpd. The inventory is 19.78M/tonnes, increased by 22.5% compared to the same period last year. Due to the falling price of glass, and increased inventory, many enterprises postponed projects which naturally affected the tonnage of refractories used in the glass industry. In China, zirconium refractories tend to have a defined production and delivery period. The orders are placed in the second half of the year while the products are delivered from January onwards. As such, there are presently pessimistic views about next year's market. The amount of the refractory used in glass accounts for around 20% of the World's total zircon sand consumption, and as such there has been a knock-on effect in terms of demand for the sand itself in the short-term.
