China's Fiberglass Exports Are Entering A Golden Window Of Opportunity, And The Industry's Prosperity Continues To Rise.

In March 2026, a sharp rise in European natural gas prices directly increased the overall production cost of fiberglass in the region. Coupled with an existing supply gap in European fiberglass production capacity, global fiberglass trade is expected to further shift towards China. As a core global fiberglass supplier, Chinese companies are expected to significantly increase their exports. Simultaneously, 2026 is a "downturn" year for the domestic fiberglass industry, providing a basis for an unexpected surge in roving prices. With both supply and demand factors favorable, the domestic fiberglass industry's prosperity is expected to continue to improve.

 

Surge in Natural Gas Prices Intensifies Pressure on European Fiberglass Production

 

Fiberglass is an energy-intensive industry, and natural gas is a core energy source for production, accounting for a high proportion of energy costs. European fiberglass companies are highly sensitive to fluctuations in natural gas prices. In March 2026, European natural gas prices surged, with a single-day increase of 40% on March 3rd, reaching €62.5 per megawatt-hour, and a cumulative increase of over 100% in two days. This directly led to a significant increase in European fiberglass production costs, further intensifying the industry's production and operational pressures.

 

The European fiberglass industry has a history of being impacted by energy price shocks. Following the Russia-Ukraine conflict in 2022, European natural gas prices surged. The European Fiberglass Producers Association pointed out at the time that the industry's energy costs were more than ten times higher than before, and the rising energy prices directly threatened industry operations and value chain continuity, leading to the partial closure of domestic fiberglass production capacity. In April 2025, NEG, the UK's largest fiberglass plant, officially announced its closure due to high energy costs and competition from imported fiberglass, becoming a typical case of the European fiberglass industry being impacted by the energy crisis.

Historical data shows that rising energy costs in Europe directly drive the growth of domestic fiberglass exports. In the first quarter of 2022, affected by the European energy crisis, my country's exports of fiberglass and fiberglass products reached 545,500 tons, a year-on-year increase of 49.7%; the export value reached US$952 million, a year-on-year increase of 49.6%, with domestic enterprises effectively filling the supply gap caused by the contraction of domestic production capacity in Europe. The current surge in European natural gas prices will further suppress domestic fiberglass production, and the export market for domestic fiberglass is expected to further expand.

 

A long-standing supply-demand gap exists in the European fiberglass market, with domestic companies playing a key role in filling the gap.

 

Looking at the supply and demand structure of the European fiberglass market, domestic production capacity is insufficient to meet demand, and the gap is highly dependent on external supply, with China being the core supplier.

 

On the demand side, according to AVK data, from 2011 to 2021, the demand for fiberglass composite materials in Europe showed a steady growth trend, increasing from 2.37 million tons to 2.91 million tons, with a compound annual growth rate of 2.1%, higher than the 0.9% compound annual growth rate of Europe's nominal GDP during the same period. The automotive industry was the main source of increased demand. Starting in 2022, affected by factors such as the energy crisis, the demand for fiberglass composite materials in Europe began to decline. Demand in 2022 was 2.72 million tons, a year-on-year decrease of 6%; in 2023, it further decreased to 2.5 million tons, a further year-on-year decrease of 8%, falling back to the level of 2013-2014. Demand declined across all sectors, but still maintained a basic demand scale of 2.5 million tons.

 

On the supply side, the supporting capacity of European domestic fiberglass production capacity is relatively weak. Twelve fiberglass plants in nine European countries have a daily melting capacity of approximately 1 million tons, encompassing global leaders such as OC, NEG, and JM, as well as local companies like 3B and Envalior. However, due to the small scale of their kilns and high labor costs, actual output is less than 1 million tons. Based on this, it is estimated that the supply-demand gap in the European fiberglass composite materials market in 2023 was approximately 1.5 million tons, primarily filled by regions outside Europe.

 

Domestic fiberglass companies have become a core supplier to the European market through direct exports and overseas production bases. On the one hand, domestic companies directly export fiberglass products to Europe; on the other hand, overseas production bases have become important supply channels. For example, China Jushi's Egyptian base has a capacity of 360,000 tons, primarily supplying the European market, forming a dual supply system for Europe.

 

Fiberglass has global pricing attributes; European demand will be a key variable for exports in 2026.

 

Fiberglass is a resource-like commodity with global pricing attributes. Its trade is dominated by the global supply and demand pattern, and China has become a core global supplier of fiberglass. External demand is crucial for the development of the domestic fiberglass industry.

 

According to data from the China Fiberglass Industry Association, in 2025, China's direct exports of fiberglass and fiberglass products reached 1.95 million tons, accounting for 12% of the total fiberglass yarn production of 8.43 million tons. This figure does not include fiberglass indirectly exported through end-products such as home appliances and automobiles, indicating a potentially higher actual export volume. Based on a domestic production of 8.43 million tons and a global production of 12 million tons, domestic demand for fiberglass accounts for approximately 55%, while external demand exceeds 45%. The development of China's fiberglass industry is deeply intertwined with the global market, making both domestic and external demand equally important.

 

After years of development, China's fiberglass industry has achieved domestic substitution, forming an industry structure where "China is the sole supplier to the world," and occupying a dominant position in global fiberglass trade. The recent surge in European natural gas prices has led to a contraction in domestic production capacity, further increasing local demand for imported fiberglass. As a major global exporter of fiberglass, China will directly benefit from this, making European demand a key variable for China's fiberglass exports in 2026, potentially driving continued growth in domestic fiberglass exports.

 

2026 is expected to be a "lean year" for fiberglass supply, with roving prices potentially rising beyond expectations.

 

While domestic fiberglass exports are benefiting, a slight expansion in supply is also providing price support. 2026 is considered a "lean year" for domestic fiberglass supply, with roving prices potentially rising beyond expectations. Fine yarn prices have already begun to rise, laying the foundation for industry price trends.

 

Fine yarn prices have already risen, with 7628 electronic fabric, a core product, seeing its price center continuously shift upwards since the fourth quarter of 2025. According to data from Zhuochuang Information, as of the end of February 2026, the price of 7628 electronic fabric was 5.3 yuan/meter, an increase of 1.15 yuan/meter from the end of September 2025, representing a 27% increase. The rise in fine yarn prices has opened up room for price increases across the entire fiberglass industry.

 

Fiberglass roving capacity has seen effective increases, making price increases even more significant. The trend of supply contraction in the industry in 2026 is clear, primarily due to two factors. First, industry capital expenditures are shifting towards high-value-added fine yarn sectors such as AI electronic fabrics, leading to reduced investment in roving capacity by mainstream companies and limiting capacity expansion. For example, Sinoma Science & Technology plans to raise 4.48 billion yuan through a private placement, with 3.14 billion yuan earmarked for an AI electronic fabric project; International Composites plans to invest 1.69 billion yuan to build a 36 million-meter high-frequency, high-speed electronic fiber fabric project. Second, the sharp rise in platinum prices has increased industry investment costs. The core raw material for fiberglass spinnerets is platinum-rhodium alloy. As of March 3, 2026, the spot price of platinum was 571 yuan/gram, a year-on-year increase of 147%. The surge in raw material prices has significantly increased the cost of new capacity construction, further constraining the pace of capacity expansion in the industry.

 

A Harmonious Resonance of Supply and Demand: Investment Value of the Fiberglass Sector Stands Out

 

On the demand side, the export benefits brought by rising European natural gas prices continue to be released, boosting domestic fiberglass export expectations. Coupled with the global pricing power of fiberglass, the industry fully benefits from global market demand. On the supply side, 2026 is a "low-supply year" for the industry, with limited expansion of roving capacity, providing a basis for unexpected price increases, with fine yarn prices leading the way and creating a ripple effect. With both supply and demand factors favorable, the domestic fiberglass industry's prosperity will continue to rise, highlighting the sector's investment value.

 

It should be noted that the fiberglass industry still faces potential risks, including weaker-than-expected European demand, fluctuations in domestic macroeconomic conditions leading to changes in domestic demand, unexpected adjustments in industry capacity expansion, and significant fluctuations in fuel prices. These factors may affect the industry's development pace and corporate profitability. However, overall, against the backdrop of high energy costs in Europe and tightening domestic supply, the opportunities for the domestic fiberglass industry in 2026 outweigh the challenges, and the industry's positive development trend is clear.