Since March 25th, the fiberglass industry has seen significant price adjustments, with costs of various fiberglass products increasing by over 20% in the past month alone. This trend, which has been quietly implemented across the market, reflects underlying market forces and pressures.
Key sectors that utilize fiberglass, such as thermoplastics, electronics, and wind power, have shown notable recovery and growth since the beginning of the year. This surge in demand, particularly for products like thermoplastic chop and assembled yarn, has outpaced supply, creating a robust market environment.
Despite the increased demand, many fiberglass manufacturers have not experienced proportional profit growth. Financial reports from the first quarter of 2024 reveal declining profits and even substantial losses for some companies. This profit-sales mismatch has driven ongoing price increases as manufacturers seek to recover financially.
Some industry leaders, such as China Jushi, argue that current pricing levels, though higher, are necessary to maintain partial profitability and prevent industry-wide losses. They emphasize the need for a balance to ensure the long-term sustainability of the fiberglass industry.
The expanding sectors of wind energy, new energy vehicles, and electronics signal a promising horizon for fiberglass demand. This potential for sustained growth supports the current trend of price increases. The recent price hikes mark the third round of increases since March 25, particularly affecting chopped strand mat products, following previous hikes in rovings and spun yarns.
Chopped strand mat, made by bonding chopped glass fibers, is a key fiberglass product used in automobile roofs, industrial storage tanks, transparent plates, yacht shells, and truck bodies. The price increase in felt yarn, the raw material for chopped strand mat, indicates a transmission of costs from raw materials to finished products.
In the short term, the stability of fiberglass costs combined with recent price hikes in rovings, spun yarn, and thin cloth is expected to improve industry profitability. In the mid- to long-term, fiberglass, as an alternative reinforcing material, offers enhanced product performance and cost-effectiveness, broadening its application scope. The industry, having reached the bottom of a two-year cycle, is poised for growth as new application scenarios emerge and product performance improves through refined processes.
Overall, the fiberglass industry is at a turning point, marked by rising prices, falling inventories, and strengthening downstream demand, which are critical indicators of an upward cycle and potential profitability restoration.
If you have any questions
Please contact us for free consultation and product quotation
Table of Contents Add a h
