2022-06-30 12:37 source: surging news, surging number, PAIKE

China’s glass fiber industry started in the 1950s, and the real large-scale development came after the reform and opening up. Its development history is relatively short, but it has grown rapidly. At present, it has become the world’s largest country in glass fiber production capacity.

The domestic glass fiber industry has formed different positioning in different sub sectors.

In the roving field, China’s Jushi production capacity ranks first in the world, with scale and cost advantages. Jushi and Taishan glass fiber have obvious advantages in the field of wind power yarn. Their E9 and HMG ultra-high modulus glass fiber yarn have high technical content and can adapt to the challenge of large-scale blades. The technical requirements in the field of electronic yarn / cloth are higher, and Guangyuan new material, Honghe technology, Kunshan Bicheng, etc. are in a leading position. In the field of glass fiber composites, Changhai Co., Ltd. is the leading subdivision, and has formed a complete industrial chain of glass fiber resin composites.

China’s Jushi, Taishan fiberglass and Chongqing International are in the first tier in terms of production capacity and scale, and they are far ahead. The production capacity of fiberglass yarn produced by the three enterprises accounts for 29%, 16% and 15% of that in China. Globally, the production capacity of the three domestic giants also accounts for more than 40% of the global total. Together with Owens Corning, neg (Japan electric nitrate) and American JM company, they are listed as the world’s six largest glass fiber enterprises, accounting for more than 75% of the global production capacity.

The glass fiber industry has obvious characteristics of “heavy assets”. In addition to material and energy costs, fixed costs such as depreciation also account for a large proportion. Therefore, cost advantage has become one of the core competitiveness of enterprises. The core of the production cost of glass fiber is material, accounting for about 30%, of which domestic enterprises mainly use pyrophyllite as raw material, accounting for about 10% of the production cost. Energy and power account for about 20% – 25%, of which natural gas accounts for about 10% of the production cost. In addition, labor, depreciation and other cost items account for about 35% – 40% in total. The internal core driving factor for the development of the industry is the decline of production costs. Looking at the development history of glass fiber, it is actually the development history of cost reduction of glass fiber enterprises.

On the raw material side, several glass fiber leaders in the head have improved the guarantee ability of mineral raw materials in terms of variety, quantity and quality by holding or participating in ore production enterprises. For example, China Jushi, Taishan fiberglass and Shandong fiberglass have successively extended to the upstream of the industrial chain by building their own ore processing plants to reduce the cost of ore raw materials as much as possible. As the absolute leader of the domestic glass fiber industry, China Jushi has the lowest cost of raw materials.

If compared with overseas enterprises, domestic and foreign enterprises have little difference in raw material costs. Based on the different resource endowments of various countries, local enterprises use pyrophyllite as raw materials, while American enterprises mostly use kaolin as raw materials, and the ore cost is about $70 / ton.

In terms of energy cost, Chinese enterprises have disadvantages. The energy cost of Chinese tons of glass fiber yarn is about 917 yuan, the energy cost of American tons is about 450 yuan, and the energy cost of American tons is 467 yuan / ton lower than that of China.

The glass fiber industry also has obvious cyclical characteristics. With the continuous growth of electronics, automotive, wind power and other fields, the future market prospect is broad, so the upward phase of the cycle is expected to be extended.