As glass fiber products entered late May, prices continued to rise, and the industry's turning point signal was further strengthened. This price increase is the third round of price increases in the glass fiber industry since March 25 and April 13. The price increase range is mainly for chopped strand mat products, while the previous two rounds of price increases were mainly for coarse yarn, fine yarn, and thin cloth. Chopped strand mat is a secondary product of glass fiber that cuts glass fiber raw yarn into a certain length, randomly settles on the conveyor belt, and then uses powder or emulsion adhesives to bond these chopped fibers together. The raw yarn for making chopped strand mat is felt yarn, which is classified as ply yarn. At the bottom of the glass fiber cycle in the past two years, felt yarn and sheet yarn were the most pressured glass fiber yarn varieties, and they were also the first glass fiber varieties to increase in price in this round. Against the background of felt yarn price increases, the profitability of glass fiber chopped strand mat is under pressure. This price increase belongs to the price transmission from yarn to products.
The downstream of chopped felt is mainly car roofs, large industrial storage tanks, transparent plates, yacht shells, truck bodies, etc., which can enhance structural strength, reduce structural weight, enhance sound insulation and heat insulation performance, etc. The smooth transmission of prices may indirectly confirm the recovery of demand for automobiles and industries.
Price increases, factory inventory declines, and smooth price transmission are important short-term signs of the turning point of the industrial chain cycle. In the previous two rounds of glass fiber raw yarn price increases, the rapid decline in glass fiber industry inventory in March and April has met the first two of the three major signs, and this round of glass fiber product price increases has met the third major sign, and the upward signal of the cycle has been further strengthened. Further, if the destocking is smooth and the downstream demand signal is strengthened, the industry's profit recovery may be sustainable.
In the short term: In terms of profitability, the cost of glass fiber is relatively stable. After this round of glass fiber roving, spun yarn, and thin cloth increases, the industry's profit level is expected to be greatly improved. In the medium and long term: As an alternative reinforcement material, glass fiber composites with other materials can greatly enhance product performance, and cost performance is an important competitive advantage of glass fiber replacing other materials. The glass fiber industry has experienced the bottom of the two-year cycle, and prices have remained low, developing more application scenarios and broadening the scope of demand. The performance of glass fiber products has gradually improved with the continuous improvement of formulations and tank kiln processes, and the growth of product performance itself is expected to further expand its application areas.
