Glass Fiber Industry Ushered in Spring
Recently, industry analysis pointed out that the downward cycle of the glass fiber industry since 2022 has lasted for more than two years, and the current price has fallen below the historical low, and small and medium-sized enterprises are under pressure. However, with the optimization of the supply side and the approach of the industry peak season, the short-term rebound trend of glass fiber prices has been basically established. 2024 Q1 may become the bottom of the industry cycle, and the subsequent price trend will depend on the continuous recovery of end demand.
At the end of March to early April, the price of roving and electronic yarn products generally rose, some enterprises such as China Jumbo, Shandong Glass Fiber and Changhai shares have raised the price of their products. Meanwhile, the price increase of electronic yarn was affected by the conduction of price increase of downstream copper cladding board. On the supply side, the growth rate of total glass fiber yarn production slowed down in 2023, and the growth rate of new production capacity is also expected to slow down in 2024, especially electronic yarn has almost no new capacity.
Looking ahead, new wind power installation, new energy vehicle demand growth and the expansion of new areas such as photovoltaic frame is expected to drive the glass fiber demand rebound. Due to the continuous decline in the price of glass fiber in the early stage, traders have low inventory, this price increase is expected to stimulate traders to replenish inventory, which in turn will lead to an increase in shipments of glass fiber enterprises.
