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Glass fiber industry: the beginning of a new cycle

News International-French

24 May 2019

According to Chinese investment bank and brokerage firm Pacific Securities, the glass fiber industry has reached three inflection points and will enter a new cycle.

Glass fiber industry: the beginning of a new cycle

Glass fiber industry: the beginning of a new cycle

1) The capacity cycle: according to statistics, in 2019, the new production capacity of glass fiber in China will be significantly reduced to 200,000 / 300,000 tons (2018:1 million tons). The expansion of overseas glass fiber production capacity has also slowed down (2019: about 200,000 tons).

2) Prices and profits: at present, many small enterprises are on the edge of breaking even. Price bottom has support and with the recovery of economy and demand, prices and profits are approaching an inflection point, according to Pacific Securities.

3) Differentiated development: similar to the situation in 2014, the development of new infrastructures in 2019 such as wind power installations and 5G base stations will further boost demand for high-end products and thus accelerate the trend of industry differentiation. Leading companies are expected to benefit from this.