Glass fiber industry: the beginning of a new cycle

According to China investment bank and brokerage firm Pacific securities, the fiberglass industry has reached three inflection points and is about to enter a new cycle.

1) production cycle: according to statistics, by 2019, China’s new production capacity of glass fiber will be significantly reduced to 200,000/300,000 tons (2018:1 million tons).Overseas fiberglass capacity expansion also slowed (2019: about 200,000 tons).

2) price and profit: right now, many small businesses are on the verge of breaking even.Pacific Securities data show some support at the bottom, with prices and profits approaching an inflection point as the economy and demand recover.

3) differentiated development: similar to the situation in 2014, the development of wind power devices and 5G base stations and other new infrastructure in 2019 will further drive the demand for high-end products, thus accelerating the trend of industry differentiation.Leading companies are expected to benefit.