Several important questions about the glass fiber industry!

Question 1: What do you think of this glass fiber cycle? How to judge the future demand and price of glass fiber?

A: This round of glass fiber cycle mainly starts from the second half of 2020. The epidemic situation has improved and market demand has grown. However, the supply side has a mismatch between supply and demand due to less new production capacity, and product prices have continued to rise until the end of 2021. The two foreign markets have developed asynchronously, and foreign countries are obviously better than domestic ones.

Affected by higher product prices and increased profitability of the industry, fiberglass manufacturers have had a strong willingness to expand production since last year. In the future, it is expected that the price of glass fiber products will continue the previous basic law. The low-end products will be affected first, and the prices will fall rapidly. Small and medium-sized fiberglass enterprises will experience a corresponding decline in performance; high-end products have strong price resilience and relatively stable prices. With high-end products as the mainstay, the advantages will be more obvious.

Question 2: European gas will be very tight into the winter, will it cause global supply to contract? Can European rivals bear the costs?

A: Overseas production capacity faces the dual disadvantage of unit consumption + natural gas price. In particular, the Russian-Ukrainian conflict has a great impact on European natural gas prices. Local glass fiber enterprises in Europe have plans to reduce production capacity and exit. If the overseas production capacity in this part of Europe is withdrawn, the corresponding market increment that can be brought to the company will also be considerable, and the company is also closely monitoring and tracking this.

Question 3: Is there an upper limit on the physical properties of glass fiber E9 upwards? What is the situation of new production capacity in the industry in terms of energy consumption and other aspects?

Answer: Regarding ECR roving products: the company continues to contribute to the rapid promotion and application of glass fiber in wind power, which is reflected in two aspects: one is the improvement and satisfaction in technology and quality; the other is cost, glass fiber has become a wind power manufacturer Cost-effective raw materials. The company's E9 high-modulus products are mainly used in the field of large-megawatt wind power blades. Since August this year, the growth rate of product consumption has accelerated significantly, and the company expects that ECR products will usher in a greater growth in the wind power market next year. Regarding energy consumption constraints: In accordance with the requirements of carbon peaking and carbon neutrality, the production and operation of glass fiber enterprises will be transformed towards low carbon and zero carbon in the future, taking the road of reducing consumption and controlling costs, increasing production and efficiency, and increasing the increment and efficiency of development. will be further improved. As a leading enterprise in the glass fiber industry, the company will adjust its future development mode and structure simultaneously, and strive to play a leading and exemplary role for the industry, industry and the entire manufacturing industry.

Question 4: Outlook for the electronic cloth market?

A: At present, the company's electronic cloth downstream customers have encountered an industry adjustment period, but in the past two years, the increase of electronic cloth downstream customers has exceeded the company's product increase, which shows that not only the company is optimistic about this industry, but also customers are very optimistic.

In the first half of the year, the price of electronic yarn was relatively stable and low, which had a certain impact on the company in terms of benefit, but from the perspective of competitiveness, the company's cost advantage was more obvious. The company has been involved in the field of electronic cloth since 2005. After more than ten years of summary, improvement and improvement, it began to expand production on a large scale in 2017. Now it has achieved a comprehensive lead in the efficiency, technology, and control of the electronic cloth industry, with a significant cost advantage. lead. The company will have more space and more bright spots in this product field in the future, and the company is full of confidence.

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