Glass fiber electronic yarn: product price increase, hit a new high in recent years, the industry outlook is expected to continue.

1. Supply and demand pattern is tight, product price rises continuously

At present, the domestic demand for glass fiber is exuberant and the foreign demand is gradually restored, the enterprises ship well, the inventory continues to run low, the supply and demand pattern is tight, and the prices of roving and electronic yarn continue to rise. At present,2400 tex of direct yarn prices, hit a new high in recent years, based on the current tight pattern of supply and demand, the future still raised expectations; at the same time, electronic yarn, mainstream electronic cloth prices rose. Electronic yarn continues to rise in price will advance-step push leading enterprises profit elasticity.

2. Downstream demand continues to expand, the industry will maintain high visibility

Electronic yarn is a single filament diameter less than 9-micron glass fiber yarn, after textile into electronic cloth, about 94% for copper-clad laminate, the terminal downstream is PCB..3 Electronic cloth accounts for about 20%/7% of copper-clad laminate / PCB cost respectively. Electronic yarn positioning high-end, technology/capital threshold is higher. Copper-clad laminate manufacturers to expand production led to the increasing demand for electronic cloth, 2021 electronic yarn / electronic set gas is expected to maintain. In addition, because glass fiber demand is closely related to the macro economy, typical pro-cyclical varieties, with the marginal weakening of the impact of the epidemic, the economy will gradually recover and demand will grow steadily.

3. New capacity of 250000 tons, leading profitability continues to increase

In terms of production capacity, it is expected that the total new electronic yarn production capacity will be 250000 tons in 2021-2022, an increase of 22.3%/31.4% over the global/domestic electronic yarn production capacity of 112.797 million tons at the end of 20 years. The supply/demand of electronic yarn is estimated to be 84.2/858 million tons in 2021, with a tight balance between supply and demand and high price. At the trend of the transfer of PCB industry to China, the Chinese head enterprises with cost advantage have dominated the new production capacity of electronic yarn, which is expected to promote the optimization of a competitive pattern of electronic yarn. Electronic glass fiber yarn/cloth is expected to copy roving cost decline path, in the intelligent trend of cost is expected to continue to explore. Leading company competitive advantage is obvious, electronic cloth unit profit is expected to widen gradually.