[Click eStock] "KCC Glass, Price Peak Effectively This Year... Continued Strong Market Conditions"

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment & Securities maintained a 'Buy' investment rating and a target price of 91,000 KRW on the 21st, stating that this year’s flat glass production shortfall will be offset by product price increases.

Kang Kyung-tae, a researcher at Korea Investment & Securities, stated, "The ASP of flat glass in Q4 2021 closed at 521 KRW per kg, up 7.6% year-on-year. This is effectively a historic high for the current price."

Researcher Kang explained, "The rise in flat glass ASP by KCC Glass, which holds more than half of the domestic market, indicates that the supply and demand of flat glass is shifting in favor of suppliers."

Researcher Kang forecasted that the favorable market conditions will continue this year.

He analyzed, "It was a year in which production volume (Q) shortfalls were compensated by product price (P) increases. The demand for flat glass from apartment construction sites started after 2020, and the lack of plans for expansion or additional operation of idle melting furnaces limits flat glass supply, supporting the upward trend in ASP."

He added, "With an increase in the shipment ratio of premium and eco-friendly vehicles, sales of LVT flooring, and rising pile demand at construction sites, product prices across all business divisions are expected to rise."