Fiberglass Material Prices Will Continue to Rise in May

As the CEO of Hebei HaiDing Fiberglass Manufacturing Co., Ltd., I am deeply entrenched in the dynamics of the fiberglass market. Our company's commitment to delivering superior fiberglass products is informed by an acute understanding of market trends, which are currently indicating an upward trajectory in prices.

1. Industry-Wide Price Adjustments Since March

Since March 25th, fiberglass manufacturers have collectively adjusted their pricing, leading to a widespread increase in the cost of fiberglass products. Over the past month alone, some types of fiberglass have seen price increases of over 20%, and this upward trend is expected to continue. Interestingly, these price adjustments have been implemented quietly, indicating significant market forces at play.

2. Recovery in Key Demand Sectors

The main downstream sectors that utilize fiberglass, such as thermoplastics, electronics, and wind power, have shown considerable recovery and growth since the beginning of the year. Products like thermoplastic chop and assembled yarn have experienced significant demand increases, both domestically and in exports, leading to a situation where supply cannot adequately meet demand.

3. Discrepancies Between Profit and Sales

Despite increasing demand, the profit margins for many fiberglass manufacturers have not seen proportional growth. The financial results from the first quarter of 2024 indicate a common trend of declining profits, with some manufacturers even facing substantial losses. This mismatch between sales and profitability has been a key driver for the ongoing price increases as companies strive to recover financially.

4. Industry Sustainability Concerns

The current pricing levels are considered reasonable by some industry players as they allow for partial profitability and break-even scenarios. However, as pointed out by industry leaders like China Jushi, if all companies were to operate at a loss, the industry's sustainable development would be threatened. This balance is crucial for the long-term health of the fiberglass industry.

5. Positive Outlook on Long-Term Demand

Looking ahead, the continuous expansion of sectors like wind energy, new energy vehicles, and electronics suggests a broadening horizon for fiberglass demand. This underlying strength supports the current price increase trend. The durability of this price rise, however, will depend on the ongoing order situation in these expanding industries.

As we navigate these changes, our focus at Hebei HaiDing remains on providing our clients with high-quality, customizable fiberglass solutions. Understanding these market dynamics is essential for our clients and us to plan and adapt strategically.