The year 2020 is an extraordinary year, the sudden outbreak of the Covid-19 has affected the national economy, the development of various industries, and the lives of the people in all aspects. It can be described as a turning point year for the world. Similarly, 2020 can also be regarded as a turning point year for the Fiberglass yarn industry, and it is a year of upward turning point. In 2020, the total output of Fiberglass yarn will be 5.41 million tons, an increase of 2.64% year-on-year. Although the Fiberglass industry has also suffered a certain degree of impact due to the impact of the epidemic, the growth rate has dropped significantly compared with last year. With the clearing of industrial production capacity and the stimulus of downstream application demand, the industry is gradually picking up. When entering the third quarter of 2020, the price of Fiberglass will usher in a continuous rise and hit a new high. Industrial capital generally reached a consensus on this development status, that is, Fiberglass will enter the business cycle, and the boom is expected to continue for more than 2 years.
Fiberglass yarn is a kind of inorganic non-metallic material with excellent performance, with a wide variety and wide application. The downstream demand of Fiberglass includes construction materials, transportation (automobiles, etc.), industrial equipment, electronics (PCB) and wind power, accounting for 34%, 27%, 15%, 16%, and 8%. Compared with metal materials such as steel and aluminum, glass fiber has the advantages of light weight and high strength. Compared with carbon fiber, it has the advantages of high cost performance and high specific modulus.
As an alternative material, Fiberglass yarn continues to innovate and discover new applications, and its life cycle is still in the stage of continuous growth. The production and sales volume has maintained a sustained growth rate higher than that of GDP.
Technological progress and cost reduction bring long-term growth. Technological progress is embodied in the extension of high added value and the expansion of single-line scale, which will further increase the level of revenue and decrease the cost.
Technology continues to advance: Functional glass fiber with special properties such as high strength, high modulus, low dielectric, high temperature resistance, insulation and corrosion resistance is breaking through the technical bottleneck, and the application field will be further expanded. New automobiles, new energy (wind power), Shipbuilding, aircraft, high-speed railways and highways, anti-corrosion, environmental protection and other fields will become new growth points for the glass fiber industry, especially thermoplastic yarns and wind power yarns. For example, Jushi E9 glass fiber was launched in August 2020, and the limit length of all glass fiber blades is expected to be increased from about 85 meters to 90-100 meters, which will further replace carbon fiber and other materials to meet the needs of large-scale wind power and marine application scenarios.
The cost continues to drop: the core lies in the single-line scale and the improvement of process technology, which is reflected in the large-scale and intelligent tank kiln, the processing of large slip plates, the new glass formula, the high-quality sizing agent, and the reuse of waste silk.
