The self-discipline of the fiberglass industry promotes high-quality development and looks forward to the demand in emerging fields?

On December 12, the 2024 Annual Meeting of the China Fiberglass Industry Association was successfully held. This meeting conducted in-depth discussions on topics such as the recent industry operation, industry self-discipline, intelligent transformation, and the promotion of new application fields. At present, the fiberglass industry has shifted from high-speed development to high-quality development, and industry self-discipline has gradually become a consensus among enterprises. Looking forward to 2025, demand in the wind power field will continue to grow rapidly. At the same time, new application fields such as ocean/photovoltaic are expected to contribute to the increase. It is expected that the price recovery of wind power yarn will support the improvement of fiberglass companies' profitability. Leading companies with technical strength and high-end product structure are expected to benefit. Supply side: The growth rate of production capacity and output has slowed down, and industry self-discipline has promoted healthy competition. Since the beginning of this year, the growth rate of domestic fiberglass production has continued to decline. According to statistics, the seven major domestic fiberglass companies have shut down 15 production lines in total in the past two years, with a total production capacity of 1.01 million tons. Leading enterprises take the lead in cold repairing backward production capacity and delaying the pace of new production capacity commissioning, which reflects that industry self-discipline has gradually become a consensus, which is conducive to promoting healthy competition and high-quality development in the industry. Import and export: Export growth has slowed down since Q3, and attention should be paid to the progress and impact of tariff policies. According to Zhuochuang Information, as of October this year, my country's exports of fiberglass and products were 1.788 million tons, up 14.0% year-on-year, but the overall export growth slowed down in the third quarter. In November, the Ministry of Finance and the State Administration of Taxation issued an announcement on adjusting the export tax rebate policy, in which the export tax rebate rate for fiberglass and products was reduced from 13% to 9% from December 1. The reduction in the export tax rebate rate may have a certain impact on the export profits of glass fiber companies in the short term; in the medium and long term, the reduction in the export tax rebate rate will help avoid low-price competition, forcing companies to adjust their product structure to enhance product competitiveness and further enhance their international influence. Demand side: Wind power yarn has increased in both quantity and price, and we expect compound prices to support profit improvement, new application areas to continue to expand, and demand for marine/photovoltaic frames is expected to increase.