Alkali-free direct yarn with the prefix 3 is still infinitely missed by many people! This price may become the lowest price in history of alkali-free glass fiber, unprecedented.
The prefix 3, how much is the cost price of the fiberglass factory! If the market at that time lasted for a period of time, not only small and medium-sized high-alkali factories would fall, but also many small and medium-sized enterprises, such as a certain factory.
But history has no ifs. The time comes to August 2020, and the glass fiber officially enters the upward range. Waves of waves directly pushed the lowest price in history to the highest price in history.
Now that a whole year has passed, the price of alkali-free direct yarn is still at the beginning of the letter 6, although the price of the second and third echelon has been adjusted back to the beginning of the letter 5, it is only one foot moved back. [Long word] Ice and fire are two days, the price of glass fiber has reached an inflection point? Ply yarns have come to the ten thousand yuan era, and some varieties of goods are still in a tight state, and random emergencies will lead to out of stock.
This year's glass fiber market has ushered in a unique grand occasion. Even a veteran who has been in the industry for decades has never imagined it, let alone encountered it.
According to the latest market news, a giant has already announced that the price will increase in the next September, not much, but it is basically back to the high level of April.
Why can the price of glass fiber, which has been strong for a year, continue to rise again and again? Where does the confidence come from?
First of all, the balance of supply and demand has been broken. In the most tense times, it is indeed difficult to find a single thread.
After the industry's great leap forward in 2018, the expansion of glass fiber production capacity has slowed down significantly in 2019. In 2019, there are fewer domestic ignition production lines, and they are mainly for cold repair and technical transformation to resume production.
The downturn in the market has slowed down the pace of new production lines of major factories. Under the violent attack of the epidemic in the first quarter of 2020, the inventory pressure of major factories is as heavy as a mountain. At that time, every downstream factory should have received enthusiastic calls from fiberglass salespersons, saying all the good things in order to help digest some of the inventory.
No one can imagine that the change will come so quickly! After the domestic epidemic was quickly controlled, China suddenly became a global factory, and various demands exploded, and wind power added fuel to the fire, directly burning the market of glass fiber to the sky.
Glass fiber is an asset-heavy and high-threshold industry, and the concentration of the industry is very high. The Big Three accounted for nearly 65% of the production capacity, and the production capacity of the top six accounted for 80% of the total domestic production capacity.
Without strength, scale cannot be formed, and without scale, how can we talk about advantages. The head is getting stronger and the tail is getting weaker and weaker, eventually forming a situation where several oligarchs control the market. A few big guys can set the price to death with a pot of tea.
The situation of many downstream FRP plants is actually not good recently. Compared with the first half of the year, the orders of some companies have shrunk. Export products have slowed down due to the shortage of containers and high costs, which eventually caused the production pace of the factories to slow down.
Thermoplastic chopped yarn is still hot, and the 5G communications industry is also preparing to open the market. Wind power will have a head start at the end of the year. The export of glass fiber is also booming. These are several factors that are bullish in the future. There seems to be a good reason, but it doesn't seem to be. After all, the glass fiber is at a high position, so it has never come down.
As the barriers to entry are getting higher and higher, the pricing power is firmly held by the giants. Because of the price increase, the profits of major factories have also increased by leaps and bounds. How can the giants who have tasted the sweetness easily give up their prices.
The current situation is very delicate. If the glass fiber continues to rise sharply, a large number of downstream industries will be killed. However, expecting a rapid price correction, supported by relatively strong demand, coupled with the temptation of high profits, it is impossible for the fiberglass factory to let the cooked duck fly.
So at present, it is very normal for the price of glass fiber to fluctuate sideways. If the market news is good, the price will increase. If the market demand is general, manufacturers or distributors will have a little inventory pressure, and they will also drop slightly.
