What impact might the continued high platinum price consolidation have on fiberglass companies?

Since the end of May 2025, platinum prices have been rising continuously. Yesterday (January 20, 2026), the latest price exceeded 600 yuan, nearly tripling from just over 200 yuan at the beginning of the year. Previously, platinum had hovered at low levels for many years; this recent surge has led to a prolonged period of high prices in 2026. What impact will this sustained high platinum price have on fiberglass companies?

1. It will further increase fiberglass production costs. The platinum consumption per ton of fiberglass is fixed, and the consumed platinum needs to be replenished at current prices (except for companies with surplus platinum).

2. It will increase the selling price of fiberglass. Price is mainly determined by supply and demand and costs. With supply and demand remaining constant, increased costs will inevitably be passed on to downstream customers, leading to higher selling prices. Simultaneously, the rising prices of various non-ferrous metals, as a basic material, will inevitably lead to a reduction in the use of metal materials, and the proportion of composite materials replacing metal materials will increase in the future.

3. It will allow the production of higher-profit fiberglass products. This year, the market for thermoplastic, wind power, and electronic yarn products has been strong. With platinum prices expected to remain high in the future, companies may choose to produce lighter, higher-value-added fiberglass products, such as electronic yarn and low-dielectric yarn, using less platinum per spindle. However, the output value and profit per spindle are still significant. Currently, some leading companies have already announced the early cessation of roving production to use platinum for the production of higher-value-added electronic yarn.

4. Fiberglass companies will see a significant increase in net assets, especially those with large amounts of platinum they own. Since they purchase platinum at lower prices, if platinum prices remain high for an extended period, companies' assets will be reassessed, leading to a substantial increase in net assets. For example, if a fiberglass company owns 20 tons of platinum, at the beginning of the year at 220 yuan/g, its assets (or cash value) would be 4.4 billion yuan. At 600 yuan/g, the value would be 12 billion yuan, resulting in an actual increase in net assets of 7.6 billion yuan.

5. New fiberglass projects will slow down. Because new fiberglass projects require platinum, companies will slow down their procurement pace and make purchasing decisions in batches based on price conditions. Waiting and observing may be difficult decisions for fiberglass companies in their procurement decisions.

6. Some small, loss-making fiberglass companies may reduce or halt production, selling off some platinum at high prices. Making fiberglass is unprofitable; selling platinum is a more direct way to generate revenue.

7. Research on the possibility of replacing perforated materials, including whether there are alternatives to platinum, the proportion of platinum in other materials, etc.