Float glass is a highly preferred material in the construction industry. The shortage is due to a number of factors, including a global pandemic and health and safety guidelines. Aside from a shortage of raw materials, the COVID-19 virus is reducing the supply of glass for other industries. This is affecting the demand for the glass and the production of it. Luckily, there are ways to get more float glass, and we will discuss how these factors affect the shortage.
Float glass is preferred by the construction industry
Float glass is used in the construction industry for several reasons, including its aesthetic value, ease of installation, and durability. In addition, float glass is highly resistant to extreme temperatures, making it an ideal choice for outdoor use. Float glass is also used in residential buildings. It helps achieve LEED certification for buildings. Increasing focus on building codes is another factor that will boost demand for float glass. Moreover, the Indian real estate industry is expected to grow to USD 1 trillion by 2030 and contribute 13% to the country’s GDP.
Asia-Pacific: Among the regions, Asia-Pacific is expected to be the fastest-growing and most dominant float glass market. The region’s fast-growing economies and increasing spending on infrastructure are driving demand for new construction, office buildings, and production houses. With the increase in solar industry development, Asia-Pacific is a promising region for float glass. There are numerous manufacturers of float glass around the world.
Float glass is produced in China
In the recent past, a large number of float glass factories have been established in China. However, due to the economic situation and environmental protection concerns, the production of flat glass has slowed down in recent years. The recent overcapacity caused by loose macro policies in China is a case in point. According to statistics, the total capacity of flat glass factories in China increased from 33.5 million tons in 2008 to 38 million tons in 2009. In addition, the utilization rate of the float glass production capacity was gradually decreased during the year, thereby bringing down the price of flat glass.
The production capacity of float glass plants in China varies from 150 tons a day to 900 tons. In addition to the cost of direct materials such as soda ash, float glass also contains a large proportion of energy. Fuel, in particular, represents a major cost component, and is primarily determined by the price of petroleum fuel, natural gas, and electricity. The cost of materials and fuels are directly related to the unit product cost.
Float glass is imported
A glass shortage will affect the construction industry in the near future. The construction industry is already under a lot of stress with the labor shortage, lumber shortage, and higher prices over the last 12 months. People spent a lot of time and money restoring and renovating their homes, but now they are unable to obtain the materials they need. A glass shortage will further set back the industry and will make it difficult to keep up with demand.
In response to the crisis, the government has imposed an anti-dumping duty on imported glass. This measure has hit many industries and has led to a significant reduction in domestic production of the glass. The government should consider lifting this duty temporarily, as this will help the supply situation and save many jobs. Imports of glass have decreased dramatically after COVID-19 was passed, but freight has increased three to four times the usual cost. The costs are now making importing glass less profitable.
Float glass is produced in Egypt
The Saint-Gobain Flat Glass Sector in Egypt has decided to expand its presence in the Middle East market. It is planning to build a float glass production line in Ain El Sokhna, a city along the Red Sea coast. The new facility will be operated in a joint venture with the MMID, a large Egyptian group that has interests in industry and real estate. The new facility will produce glass for both the Egyptian market and export to the Middle East and Africa.
A local company that produces flat glass in Egypt has recently announced its intention to participate in an exhibition in Dubai, where it will promote its new product called reflective glass. This type of glass has an insulation system that reduces the amount of heat the sun transfers into a building. This glass is very useful in the Egyptian climate, since glass is the material that most building facades are made of. Egypt’s glass industry began producing reflective glass in 2011, and it offers a wide variety of colours.
Float glass is imported from India
The float glass industry in India is in a crisis, and has approached the government for anti-dumping duty on foreign suppliers. It is a continuous process, and the domestic industry has no option but to produce the subject goods indefinitely. This also means that India cannot export the subject goods duty-free to China, which has become one of the country’s major markets. Currently, glass from West Asia is available for as low as $120-130 a tonne in Mumbai.
In September 2015, India imposed an anti-dumping duty on float glass from China, but this duty has now been extended for another three months, to December 7, 2020. India’s anti-dumping duty has impacted float glass imports from China and several other countries, and has already cut imports of the product. Despite the duty, float glass imports from Bangladesh have dropped considerably. As a result, India is importing vital medical supplies and medicines from these countries to tide over the crisis.
Float glass is imported from Egypt
A shortage of glass in the market has impacted the construction industry. The shortage has exacerbated the cost of other building materials, including labor and lumber. The price of glass has risen dramatically, making it difficult for many businesses to survive. The construction industry already struggles with a shortage of other building supplies, so the lack of glass has slowed the progress of many projects. Float glass is used for a variety of construction projects, and this shortage will only add to the burden on the construction industry.
As a result of this shortage, glass traders are buying the raw material directly from manufactures, meaning they get higher margins on the second sale. Demand is high, and people are willing to pay higher prices to buy glass. A new glass production capacity can take 18 months to start up, and the shortage is affecting production of both imported and domestic products. Float glass is imported from Egypt because of shortages.