According to the latest statistics from the Ministry of Economy (NDRC), market demand for float glass in China is poor. However, demand for building materials in China continued to experience strong growth in 2011, despite the tightening of government action and, to some extent, slow demand from the housing market. Production in the flat glass sector is damaged by excess capacity, therefore, duplicates construction problems. The main consumer of flat glass - the private housing sector - began to cool rapidly in China due to government measures such as a ban on the purchase of homes and stricter requirements for advanced payment for the last two years.Prices for flat glass fell 27% in December/11 compared to the same period 2010. In late 2011, stocks of flat glass were up 26.6% compared to the same period 2010. Manufacturers of flat glass saw profits fall 80.3% year on year - to CNY 1.47BN in the first 11 months of 2011. NDRC announced October 2011 that it would take action in respect of national projects to build capacity of flat glass to curb over-production of glass. The demand for flat glass depends on the pace of the housing sector as main consumer of the material.
