Fiberglass Market Stable; Strong Electronic Yarn Demand Fuels Post-Holiday Price Hike Expectations

Overview

This weekly report tracks developments in China’s fiberglass market. As of April 30, the market remained generally stable, with winding roving prices flat and demand showing structural divergence. High-end products, thermoplastics, and wind power segments performed well, while traditional construction-related demand remained sluggish. Electronic yarn fundamentals were notably stronger than those of winding roving, with persistent supply tightness. Looking ahead, winding roving prices are expected to remain stable in the short term, whereas electronic yarn prices may rise further after the holiday. Citigroup maintains its Buy rating on Jushi Group.

Core views

Supply side: This week saw 121 operating furnaces, with total capacity reaching 8.875 million tons/year, remaining steady after one new production line was added early in the week. No cold repairs occurred this week, and overall inventory levels declined slightly, reflecting a relatively high production-sales ratio across most manufacturers and manageable industry inventory pressure. Demand side: Demand for winding roving is supported but offers limited upside, as downstream procurement remains driven primarily by rigid needs without significant incremental demand. However, demand shows clear segmentation—high-end products, thermoplastics, and emerging sectors like wind power are improving, while construction-related demand remains weak. Electronic yarn demand remains strong, with shortages reported for both electronic yarn and fabric, especially driven by resilient downstream demand from copper-clad laminates (CCL), providing solid support for pricing. Pricing trends: The mainstream transaction price for winding direct roving (2400tex) ranged between RMB 3,600–3,900/ton, with a national average of RMB 3,791/ton—unchanged WoW and up 1.49% YoY. G75 electronic yarn prices remained stable at RMB 11,800–12,500/ton, while 7628 electronic fabric traded at RMB 6.0–6.3/meter, with tighter supply conditions for high-end and thin fabrics. Outlook: Winding roving prices are expected to remain stable in the short term as demand recovery progresses gradually and the market digests previous price increases, though costs provide underlying support. Electronic yarn prices are expected to rise further post-holiday, benefiting from tight supply, low inventories, and firm downstream demand, with high-end products likely leading the increase.

Analysis framework

Citigroup employs a multi-dimensional weekly tracking framework covering supply, demand, inventory, and pricing to monitor fiberglass market sentiment. First, it tracks the number of operating furnaces and capacity developments to assess supply stability. Second, it breaks down demand by product type and end-use segment to capture structural divergence, with particular emphasis on high-end categories like electronic yarn. Third, inventory changes are analyzed to gauge supply-demand balance. Finally, transaction prices are aggregated to produce a weekly market snapshot. This multi-faceted approach enables timely identification of inflection points as the market shifts between balanced, tight, or loose conditions, supporting short-term investment decisions.

Methodology notes

• Industry/ Sector Analysis FrameworkSupply-demand framework

  Tracking market balance by analyzing supply-side factors (capacity, inventory, production-sales ratio) and demand-side dynamics (segment-specific demand strength, downstream purchasing behavior)

  Fiberglass is a cyclical product whose pricing and profit margins are primarily driven by supply-demand dynamics. On the supply side, key indicators include capacity ramp-up pace, number of operating furnaces, and production-sales balance. On the demand side, purchasing intensity across downstream sectors is monitored—electronic yarn typically exhibits stronger sentiment than winding roving due to robust downstream demand (especially from CCL and 5G base stations). This layered analysis helps investors assess whether price movements are fundamentally supported.

• Industry/ Sector Analysis FrameworkVolume-price decomposition

  Disentangling price movements into volume changes (demand/production-sales dynamics) and pure price changes to avoid misinterpreting true market sentiment

  The report tracks both absolute prices (e.g., RMB 3,791/ton for winding roving) and relative changes (flat WoW, +1.49% YoY), while also inferring volume trends from declining inventories and high production-sales ratios. This prevents misjudging market health by focusing solely on price without considering underlying demand trends.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Jushi Group (600176.SS)

  As an industry leader, benefits from strong demand and tight supply for high-end products like electronic yarn, along with post-holiday price hike expectations

  Strengths

  Leading capacity, high exposure to premium products, strong electronic yarn supply capability, cost control advantages

  Weaknesses

  Weak demand in traditional winding roving applications (e.g., construction) drags overall sales growth

  Comparison

  Compared to smaller fiberglass producers, Jushi has stronger capacity allocation and customer stickiness in high-end segments like electronic yarn, enabling greater benefit during price uptrends

  Risks

  Demand recovery falling short of expectations, rising energy costs, overcapacity expansion

Key data

• Winding Roving Price (National Average)RMB 3,791/tonFlat WoW, up 1.49% YoY
• G75 Electronic Yarn PriceRMB 11,800–12,500/tonStable, tight supply
• 7628 Electronic Fabric PriceRMB 6.0–6.3/meterTight supply conditions
• Number of Operating Furnaces121One added vs. last week; capacity stable
• Total Capacity8.875 million tons/yearFlat WoW
• Inventory TrendSlightly declinedStable production-sales balance; industry inventory pressure manageable

Impact & implications

Market stability and strong electronic yarn demand signal divergent downstream application trends. Sustained demand from high-end applications (electronics, wind power, etc.) provides a solid earnings foundation for leading producers, while weak traditional construction demand continues to constrain overall growth in winding roving. Citigroup maintains its Buy rating on Jushi Group, highlighting its leadership position, pricing power in high-end markets, and supply assurance advantages. Rising post-holiday price hike expectations bode well for Q2 performance, though structural risks persist due to lackluster recovery in traditional demand segments.

Risks

• Fiberglass product demand below expectations, especially continued weakness in traditional construction sectors
• Further increases in energy and electricity costs eroding profit margins
• Capacity additions exceeding expectations, worsening supply-demand balance

What to watch

• Electronic yarn supply-demand dynamics and pricing power evolution, particularly sustainability of CCL downstream demand
• Execution of post-holiday new order prices—whether expected price hikes materialize
• Signs of improvement in traditional winding roving demand, especially from construction and related downstream sectors