Impact of Environmental Policies on Color Glass Prices
Since summer of 2017, the glass factories in China using traditional furnace for production have been asked by the environmental bureau to upgrade their furnace before the end of Nov, 2017. The upgraded furnace will be using natural gas or electricity for bulk production. The aim of this policy is to reduce emission from the traditional furnace that burning coals. Consequently, the glass price, especially the solid color glassware, has jumped significantly.
The main reason contribute to the increase of glass price is because the cost of using natural gas is much higher than burning coals.
In addition, upgrading furnace costs the glass supplier lot of capital to finish. Naturally, the glass supplier would want to increase glass price to cover the expenditure incurred during upgrading the furnace.
With less color glass suppliers left in China, their will be less competition of color glass prices. This could explain the rise of color glass price as well.
Whether we like this policy or not, the impact of this policy on color glass prices is very far-reaching.