By: Beroe Inc --
25 July, 2021
The global glass market will see a boom in the coming years due to the widespread construction and automotive industry operations, along with the government’s investment in renewable sources.
Buyers who source glass in low volumes may focus on third-party distributors instead of direct sourcing and approaching authorized distributors. However, for exterior commercial glass, the supply is done by authorized distributors.
“Increasing use of flat glass in photovoltaic modules, solar panels, and e-glass owing to a rising need for clean energy is anticipated to be one of the key trends resulting in market growth. Tempered glass, in particular, is being employed in roofing applications as well as in the manufacturing of glass windows,” said Jayanthi Chakarapani, Research Analyst at Beroe. “For commercial glass, most of the supply to the market is done by authorized distributors and third-party distributors on medium-to-long-term contracts due to the fluctuations in the prices”.
The trends like a rise in the use of advanced nanotechnology in flat glass, solar control glazing for automotive and building glasses, lightweight glazing glass, and a rise in the hybrid guide plate had a significant impact on the commercial glass industry.
Some of the drivers and constraints of the industry include:
Distribution for exterior commercial glass is done by authorized distributors and third-party distributors on medium to long contracts due to the fluctuations in the prices. Therefore, it is prudent to enter medium-term contracts while buying glass to avoid price fluctuation. So, consumers can take advantage of the changes in prices to schedule large purchases. Short-term contracts usually range from spot purchase to a contract term of up to 2-3 months for lower volumes. Long-term contracts are for 6-24 months with fixed and hedged prices of metal for larger volumes.
“Engaging with third-party distributors may increase the scope for discounts and steady supply, especially when one is looking to build inventories,” said Jayanthi Chakarapani of Beroe. “But different companies have different needs and priorities. Therefore, even though it's suggested to choose third-party distributors for low volume, which is what many are going for now, companies must establish their own sourcing practices for commercial glass that adequately meet their distinct needs”.
Join us on Oct 6 for a webinar on Managing Inflation and Supply Shortages