7628 Electronic Fabric Remains in Short Supply, Causing Prices Of High-end Fabrics To Soar.
Since the beginning of 2026, the electronic fabric industry has been on a monthly price increase trend, with the market experiencing a price surge throughout the first quarter. Entering May, the industry should have entered the traditional off-season for demand, and according to past patterns, downstream purchasing intentions would weaken, and prices would typically enter a period of consolidation. However, this year, the off-season has been unusually strong, with electronic fabric prices continuing to rise against the trend, completely breaking the market's inherent cyclical patterns.
The core factor supporting these strong prices is the industry's historically low inventory levels. Currently, the average inventory of electronic fabric across the industry is only 7-8 days, a figure already in the red zone. It is worth noting that this inventory data also includes a large amount of goods already pre-ordered by downstream customers but not yet shipped; the actual available spot resources in the market are even scarcer, and the tight supply-demand balance is far more severe than the data suggests.
The structural mismatch on the supply side is the core issue causing this round of supply-demand imbalance. Leading electronic fabric manufacturers have adjusted their production capacity layout, shifting a significant portion of their output to high-end products such as 2116 thin fabric and 1080 ultra-thin fabric. This capacity transfer has directly squeezed the production space of 7628 regular thick fabric, creating a significant supply gap for this previously in-demand product.
Meanwhile, changes in the supply of electronic yarn have further exacerbated the fabric shortage. Although the industry's total electronic yarn production has increased slightly, most manufacturers are prioritizing their own production and weaving needs, leading to a continued reduction in effective supply for external sales. Even though some leading companies' planned new production capacity will gradually come online in mid-to-late May, this new capacity will primarily be used for 2116 thin fabric production, and considerable time will be needed to complete the process debugging for 1080 ultra-thin fabric. In the short term, it will not bring any effective increase in 7628 thick fabric production capacity.
The market has long since moved beyond the old pattern of production exceeding sales. Downstream small and medium-sized customers are generally reporting a sharp increase in difficulty in sourcing goods, indicating a significant change in industry supply rules. Leading companies have adopted a selective supply model, prioritizing resources for long-term large clients, while the bargaining power of small and medium-sized clients continues to weaken. The widely discussed phenomenon of traders hoarding and panic buying has had a limited impact; such behavior is concentrated among low-to-mid-end customers, accounting for less than 10% overall, and is not the main driver of this round of price increases, confirming that this round of price hikes is not due to speculative capital.
Product prices show significant divergence. Regular fabrics are steadily rising, while high-end fabrics are experiencing a sharp price increase. The transaction price of regular 7628 thick fabric remained at 6.2-6.5 yuan in April. After the price adjustment in May, the lowest market transaction price has stabilized at 6.6 yuan, a single-round increase of 0.5 yuan. The price increases for thin and ultra-thin fabrics are even stronger, with an overall increase of 0.7-0.8 yuan. The price increases for new customers and those with unstable partnerships are even approaching 0.9 yuan. The shortage of 1080 ultra-thin fabric is the most prominent, and downstream demand for additional orders is difficult to meet.
The price increase of high-end specialty electronic fabrics has exceeded market expectations, with some categories seeing prices double and others tripling. First-generation Low Dk electronic fabric surged from the 20-30 yuan range in the first quarter to 40-70 yuan; second-generation Low Dk electronic fabric broke the 100 yuan mark, nearly tripling its original price; and the mainstream price of Low CTE electronic fabric stabilized at a high of 200 yuan. Due to the prevalence of negotiated deals on high-end fabrics and industry confidentiality agreements, price transparency is low, further widening the price gap between customers with different qualifications.
A clear prediction can be made regarding future industry price trends based on supply and demand fundamentals. 7628 standard thick fabric still has room for upward movement, with the price ceiling likely pointing to 7.5 yuan, representing an increase of approximately 0.9 yuan from the current level. The pace of subsequent price increases will slow, and the industry will control price adjustments based on downstream affordability. Overall, the tight supply-demand balance in the electronic fabric market is unlikely to change substantially before the fourth quarter of 2026. Short-term seasonal fluctuations may occur in the third quarter, but prices will continue to fluctuate at high levels. In the fourth quarter, driven by demand from industries such as automobiles and high-end consumer electronics, prices are expected to rise again.
The boom cycle for high-end specialty electronic fabrics will last longer. Their price trends are independent of conventional fabrics, employing a quarterly negotiation and order-by-order pricing model. Currently, the raw material input rate for second-generation specialty fabrics is only 30%-40%, and the finished product rate remains at 70%-80%. Capacity ramp-up is slow, and the tight supply-demand situation may continue until the end of 2027 or even early 2028. Overcoming the industry's capacity bottleneck depends primarily on the release of supply from high-end Toyota looms and the progress of technological substitution by domestically produced looms. The establishment of special fabric production lines using the pool furnace method by companies such as Kin Tao, Taishan Fiberglass, and Honghe will gradually alleviate the shortage in the high-end market.
