The “Fourteenth Five-Year Development Plan for the Glass Fiber Industry” organized and compiled by the China Fiberglass Industry Association was released recently. The “Plan” puts forward that during the “14th Five-Year Plan” period, the glass fiber industry should be driven by innovation and guided by demand, and vigorously implement the supply-side structural reform of the glass fiber industry.
At the same time, the “Plan” also clarified the “14th Five-Year Plan” product development key products, market expansion key directions and technological innovation key directions of the glass fiber industry. Driven by the policy, we believe that the glass fiber industry is expected to usher in a new business cycle.
New supply is limited, and the launch is relatively stable
According to Zhuo Chuang Information, the global new glass fiber production capacity is mainly domestic. In the first three quarters of 21st quarter, domestic new glass fiber production lines totaled about 690,000 tons. The supply side has been released to a certain extent.
According to Zhuo Chuang Information, it is estimated that from the current time point to the second half of 22, the total global new production capacity will be 410,000 tons. New supply is limited. There are two main reasons: first, under the dual control of energy consumption, energy consumption indicators have become stricter, and the production/expansion restrictions on backward production capacity have increased; second, the price of rhodium powder has risen sharply (rhodium powder is an important part of the production Raw materials), leading to an increase in investment in a single ton of glass fiber production line and raising the barriers to entry for the industry.
Demand continues to improve, and the domestic and foreign markets form a resonance
As an alternative material, glass fiber can replace traditional materials such as steel, aluminum and wood in many fields; at the same time, as a reinforcing material, it can be used in aviation/transportation/building materials/wind power/home appliances to enhance the physical properties of raw materials. The application field of glass fiber in the process of replacing other materials is expanding, and the demand is expected to grow in the long term.
Under the development of domestic emerging industries and the adjustment of counter-cyclical policies, domestic demand for glass fiber is expected to continue to improve. At the same time, foreign demand continued to recover, and domestic and foreign market demand formed a resonance. It is estimated that the global glass fiber demand in 21/22 will be 8.89/943 million tons, YoY+5.6%/5.8%.
From the perspective of the big cycle, in the second half of 20 years, the demand for rushing work has promoted the continued prosperity of the domestic wind power and infrastructure industries, superimposed on the marginal improvement of overseas demand, and the industry’s prosperity has continued to rise. In September this year, the glass fiber industry officially ushered in a general price increase, marking a new An upward cycle of the glass fiber industry has begun.
Post time: Dec-10-2021
