Recently, the high price of fiberglass yarn has shown resilience. In terms of demand, the world has entered a cycle of economic recovery, and there is continuity in the large cycle of automobile recovery. Wind power is better than expected (as of the end of May, the installed capacity of wind power was 290 million kilowatts, a year-on-year increase of 34.4%), and demand has short-term elasticity and long-term space. On the supply side, there were no new changes in the production line this week. According to estimates, the increment for 2021/2022 is 53 tons (over 300000 tons have been ignited)/580000 tons respectively, and there may still be considerable production lines under cold repair pressure in the future. Fiberglass roving prices remained high this week with structural price increases, providing strong support for prices; The market's wait-and-see sentiment is gradually heating up, and the willingness to hoard goods in the middle and lower reaches is weak, with on-demand procurement being the main focus; In May, inventory levels rebounded from low levels and remained in the lowest historical range.
The supply and demand of electronic yarn/electronic fabric are temporarily mismatched, with strong support from high prices. The electronic gauze chain is single and is the "crown jewel" of the fiberglass industry. From 2020 to 2021, CCL enterprises' capacity expansion has significantly accelerated compared to the previous period. The demand for electronic clothing is high and prosperous, and the mismatch between supply and demand is serious. Since the end of 2020, prices have seen a significant increase. It is expected that the tight supply and demand situation may continue until 2022, and it is believed that price support is strong at this stage.
