Glass Fiber Market Outlook Report
According to the Asian JEC Gazette, we have learned about the prospects of the glass fiber tube market. China’s composites market is already one of the world’s largest composite materials markets, reaching 1.5 million tons in 2007, ranking third in the world, after the United States (2.8 million tons) and Europe (1.9 million tons).
In molding technology, The obvious difference between China’s composites industry and North America and Europe is that China still focuses on hand made craftsmanship, accounting for 35%-45%, while North America and Europe are 15%-20%. The injection molding process of China is still underdeveloped, accounting for only 15%-20%, while North America and Europe are 45%-50%.
In the next five years, China’s composite materials market will grow at a high rate, with an annual growth rate of about 8%-9%. The per capita consumption of composite materials in China will increase from 1.2kg in 2007 to around 2kg in 2013 (European per capita consumption in 2013 is 3kg-4kg). Between 2007 and 2013, China’s composite materials are expected to grow in the construction and capital construction sectors (accounting for 39% of future growth), and the automotive sector is also strong (16%), followed by pipeline manufacturing (13%).
China’s demand for fiberglass and resin can be fully met by local production. In glass fiber, there are domestic manufacturers, such as Jushi, Chongqing International and Taishan Fiberglass (accounting for 60% of the country’s existing production capacity), as well as international manufacturers, namely PPG and OCV (accounting for 11% of the Chinese market).
The Chinese market will still be driven by the shift in manufacturing. For example, in China’s fiberglass market, international manufacturers are planning to develop their capacity, from 300,000 tons in 2008 to 600,000 tons in 2012. However, this growth is limited compared to the expansion plans of domestic manufacturers (from 1.6 million tons to 2.8 million tons). 2012 World Fiberglass Top 5 Production Capacity in China (10,000 tons): Jushi: 150; Chongqing International: 70; Taishan Fiberglass: 60; PPG: 37; OCV: 20.
Chinese fiberglass manufacturers will also be adversely affected by the global economic downturn. Due to the global decline in demand for fiberglass, they may temporarily freeze their investment in new capacity. However, compared to Western manufacturers, this does not substantially affect their cost competitiveness (high yield, economies of scale, lower average labor costs, etc.). Short-term demand for glass fiber is sluggish, and inventory pressure is high. Before the financial crisis, the global supply and demand of glass fiber was basically balanced. In 2001-07, the global compound growth rate was above 8%. The growth rate of China’s demand was significantly higher than the global level. In 2001-2007, China’s compound growth rate was above 23%, it is expected to maintain a growth rate of 15% in 2008-2012. Affected by the financial crisis, short-term demand has declined significantly, and only in the field of wind power has increased, and domestic demand is difficult to make up for the gap. The characteristics of glass fiber products that can not be stopped and limited production have increased short-term inventory pressure.
The industry is at the worst moment, waiting for the economic recovery. The current volume and price of the glass fiber industry are falling, the inventory is high, and the industry is at the worst moment, which is conducive to eliminating backward production capacity. However, the glass fiber industry is highly concentrated. The world’s six major suppliers (Jushi, OCV, Chongqing, PPG, Taishan, Johns Manivel) account for more than 70% of the world’s production capacity, and the application of glass fiber is extensive, and new application areas are also being developed, the economic recovery will usher in a huge rebound in industry earnings.