What is the current status of the fiberglass industry?
Capacity and output: The capacity of the glass fiber industry in recent years is as exciting as a roller coaster ride. In 2018, my country's fiberglass production capacity suddenly "exploded" and almost fell into the "quagmire" of overcapacity. Fortunately, the industry "pulled back from the brink" in time in 2019 and quickly reduced the new capacity. Since 2023, the industry has started the "new and old replacement" mode, eliminating backward production lines, and launching new production lines with larger capacity to start a new journey. In terms of output, China's fiberglass yarn output from 2011 to 2023 can be described as sesame blossoms rising steadily, and the total output in 2023 reached 7.23 million tons, a year-on-year increase of 5.2%. However, the growth rate has slightly dropped by 5 percentage points compared with 2022. Behind this is the silent efforts of technological progress and improved production efficiency.
Import and export situation: In terms of exports, fiberglass and its products are like a tenacious "climber", continuing to climb steadily and slightly on the peak of the international market. In 2023, the total export volume will be 1.797 million tons (excluding glass wool and its products), a year-on-year increase of 3.5%, and the export value will be US$2.66 billion, a year-on-year decrease of 11.5%. Considering the explosive growth in the first half of 2022, it is not easy to achieve such results in 2023. Why? Because of the tense international situation and the rising energy costs in Europe and the United States, our country has relied on intelligent manufacturing and digital empowerment to "counterattack" all the way, making our country's fiberglass products extremely competitive on the global stage, and the total output of fiberglass yarn in the overseas production bases of my country's fiberglass enterprises in 2023 will be 612,000 tons, a year-on-year increase of 13.6%, and overseas expansion has also been fruitful. On the import side, it is like the tide slowly receding, continuing the trend of contraction. The total import volume in 2023 was 117,000 tons (excluding glass wool and its products), a year-on-year decrease of 1.5%, and the import value was US$760 million, a decrease of 7.2% from the previous year. This shows that my country's self-sufficiency in fiberglass is getting stronger and stronger, and domestic products have grown into a "pillar" that can stand on its own.
Economic benefits: In 2023, the main business income of fiberglass and product manufacturing enterprises above designated size (excluding fiberglass reinforced composite material products enterprises) seemed to have encountered a "small winter", down 9.6% year-on-year, and the total profit fell "avalanche-like", down 51.4% year-on-year, leaving only 9.7 billion yuan. Obviously, the output is increasing, but the income is declining. The supply-side structural reform of this industry must be put on the agenda, and the "right medicine" must be prescribed as soon as possible. Fortunately, the policy has been timely, and enterprises have transformed and upgraded their technology. In the second half of 2023, major manufacturers such as Jushi Group and International Composites have frequently launched new and old products. From January 2024, the prices of some glass fibers and products have begun to increase month by month. In November, mainstream enterprises have raised prices by about 20%. In the long run, the production capacity structure is constantly optimized, and the industry is striding towards the road of high-quality development.
