How to view the sustainability of fiberglass price increases?

On the fiberglass supply side, under low profit levels, backward production capacities such as ball kilns and crucible drawing have been significantly cleared; while the progress of new production capacity in tank kilns, especially those of new entrants, has slowed down significantly, although leading companies such as Jushi and Taibo have slowed down significantly. There is still new production capacity to be released, but we expect that it will simultaneously carry out cold maintenance of old production lines, which will have a small impact on supply. We estimate that the effective new production capacity for the whole year will be around 300,000-400,000 tons, which is at a low point in recent years. .
Looking forward to 2024, the installed scale of wind power is expected to reach about 80GW, maintaining steady growth year-on-year. In addition, benefiting from policies such as automobile trade-in and large-scale equipment upgrades, the demand for automobiles and home appliances is expected to increase the demand for thermoplastics. In addition, the low price makes the cost-effective advantage of fiberglass as an alternative material more obvious. It is expected that the penetration rate in fields such as photovoltaic frames and composite doors and windows is expected to accelerate.