28 August 1998: Domestic shipments of sheet glass in Japan reportedly fell 16% year-on-year in the January-May period to 11.28 million cases (one case weighs about 47 kg). Demand fell at double-digit …
28 August 1998: Domestic shipments of sheet glass in Japan reportedly fell 16% year-on-year in the January-May period to 11.28 million cases (one case weighs about 47 kg). Demand fell at double-digit rates compared to year-earlier levels in each of the five months, with the decline in March at 21.2%. According to a recent report, the discouraging numbers were partly due to growth in shipments during the first half of 1997, which reflected a surge in housing demand ahead of the consumption tax hike on 1 April of that year. Weak demand in the first half caused inventories to expand, the report said, with the peak coming at 5.7 million cases in January, up 20% year on year. Producers quickly moved to cut output, with a 12.6% year-on-year decline in January, followed by a 29.7% drop in May. Manufacturers hope to maintain their respective market shares amid the falling demand, the report said. Industry observers say companies have more or less reduced shipments in line with share. Given the increasingly severe operating environment, three domestic producers, including Asahi Glass Co., will join PPG Industries Inc. of the US in asking the government to relax safety standards for laminated glass, as Japanese regulations call for it to be thicker than required in the US. They expect deregulation to stimulate demand as well. Manufacturers also reportedly want the government to promote double-glazing, which involves fitting two sheets of glass into a single sash to improve insulation. They envision a public promotional campaign focusing on the energy-saving aspects of double-glazing, and believe such a programme would boost interest among consumers concerned about the environment.