Glass industry: The trend recovery is yet to come

We believe that the phased rebound of glass prices from the end of December to the Spring Festival in late 2011 may be continued in the next month due to the post-holiday deep-processing companies' need for restocking (which may remain until the beginning of March). In view of the fact that there are many cold production lines that are currently out of production, and supply and demand are basically matched, the demand may further decline or break the balance so that the price will reach the bottom. Therefore, the short-term (3-4 months in the future) glass market will not be able to speak of a favorable trend. We believe that this year's "Poached Frogs" may be a "tangled" market for companies, and we believe that it is difficult for us to repeat the rapid reversal after the rapid decline in glass prices that occurred during the 2009 financial crisis. In the short term, we believe that due to the recovery of post-holiday start-ups and the stabilization or even recovery of market prices, glass stocks may have trading opportunities.