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Fiberglass And Composite Materials Industry

May 19, 2020

In the first sentence of the meeting, Liu Changlei, executive deputy secretary-general of China Glass Fiber Industry Association, told reporters of China Building Materials News with great concern.

Liu Changlei pointed out that China's glass fiber and composite materials industry has just experienced a new round of transformation pains and is facing various uncertain problems brought about by the epidemic. In this regard, on the one hand, the entire industry must be mentally prepared to respond to the epidemic, and work together to adhere to good capacity control to ensure stable supply and demand and orderly competition in the market; on the other hand, it must have a long-term perspective and achieve the goal of industry transformation in the new era. Determined and responsible, actively implement the new development concept.


Faced with the continued spread of the epidemic, how should the industry take measures to respond to ensure a stable and orderly development? What experiences and lessons should be learned from the epidemic to guide the next step of transformation and upgrading? Facing reporters' problems, Liu Changlei first listed a series of figures. According to data from the National Bureau of Statistics, in the first quarter of 2020, enterprises above the designated size in China's fiberglass and composite materials industry achieved a main business income of 27.3 billion yuan, a year-on-year decrease of 11.3%; total profit was 2.14 billion yuan, a year-on-year decrease of 9.7%. On the one hand, the new coronary pneumonia epidemic has caused shrinking demand in the downstream market, which has a significant impact on the industry's main business; on the other hand, benefiting from the efforts to regulate the glass fiber production capacity in the second half of 2019, the supply and demand of the glass fiber yarn market has slightly improved, driving the industry The overall profit margin increased.


In the glass fiber industry, the output of glass fiber yarn in the first quarter of 2020 decreased by 6.52% year-on-year, of which the monthly rate in March fell by 6.46% year-on-year. The decline in output is mainly affected by two aspects. On the one hand, in order to do a good job in the prevention and control of the new coronary pneumonia epidemic, the crucible drawing and product production lines have been shut down for a long period of time, and on the other hand, due to the active capacity regulation adopted by the entire industry in 2019 Measures, the second half of the new pool kiln firing and commissioning projects are few, and some low-end pool kiln production capacity has gradually withdrawn. However, because the kiln production line needs to maintain continuous production, and the industry's kiln production capacity has accounted for more than 90%, the overall output of the industry is less affected by the new crown epidemic and the decline is limited.


As of the beginning of May of this year, the industry's total production capacity of glass fiber yarns is about 5.4 million tons, which is a small change compared with the end of 2019. Due to factors such as the epidemic situation and sluggish market demand, only a few small special glass fiber kilns were ignited and put into production from January to April. Most new kiln projects have adopted delayed construction and delayed ignition and put into production to ensure the basic supply and demand market. stable.

In terms of imports and exports, in the first quarter of 2020, the entire industry achieved 397,000 tons of glass fiber and products exports, an increase of 3.44% year-on-year; the export value was 543 million US dollars, a year-on-year decrease of 2.66%. As the overseas market was relatively lagging behind the impact of the New Coronary Pneumonia epidemic compared with the domestic market, the overall export of the industry in the first quarter was relatively stable. Among them, chopped glass fiber, glass fiber spun fabric, and glass fiber thin felt products all experienced rapid growth, with a year-on-year growth rate of more than 10%, reflecting the rapid growth of overseas markets in the mid-to-high-end market demand.

Figure 3 Changes in the growth rate of the export of glass fiber and its products

In the first quarter of 2020, China imported 36,800 tons of fiberglass and products, an increase of 2.07% year-on-year; the import value was 220 million US dollars, an increase of 11.41% year-on-year. Among them, the import of chopped glass fiber is 15900 tons, an increase of 12.48% year-on-year, accounting for about 43.2% of the total import volume, reflecting that China still has a large gap with foreign countries in terms of production technology and product quality of thermoplastic glass fiber.

According to data from the National Bureau of Statistics, in the first quarter of 2020, the main business income of enterprises above the designated size in the glass fiber industry decreased by 10.9% year-on-year, and the total profit decreased by 3.3% year-on-year. Benefiting from the implementation of production capacity control throughout the industry in the second half of 2019, the growth rate of glass fiber yarn output dropped significantly in the second half of last year, and the company's inventory decreased significantly, and some companies achieved a price callback for some products by the end of the year. However, with the outbreak of the New Coronary Pneumonia epidemic, many downstream sub-sectors have ceased production and shutdown, new changes have taken place in the market supply and demand, and the price increase channel for the entire industry has been temporarily closed.

Figure 4 The overall trend of the main business income and total profit of the glass fiber industry

When talking about the situation of the composite materials industry, Liu Changlei pointed out that in the first quarter of 2020, the output of composite materials of enterprises above designated size decreased by 34.93% year-on-year, of which the year-on-year decline in February reached 42.22%. Affected by the new Coronary Pneumonia epidemic, the composite materials industry experienced a large-scale shutdown in the first quarter.

Figure 5: Change in monthly growth rate of monthly output of composite materials

According to statistics from the National Bureau of Statistics, the main business income of enterprises above designated size in the composite materials industry in the first quarter of 2020 decreased by 11.9% year-on-year, and the total profit decreased by 22.2% year-on-year. Rising management costs, shortage of labor, and rising raw material prices due to epidemic prevention and control are the main reasons for the rapid decline in the profits of the composite products industry.

Figure 6 The overall trend of the main business income and total profit of the composite materials industry

Liu Changlei said: "At present, the global economic development has pressed the" pause button ", and the market situation is not optimistic. The epidemic of the new coronary pneumonia continues to spread. The necessary measures taken for the prevention and control of the epidemic inevitably have to Organizing production, logistics and transportation, market sales, and capital turnover have all affected. With the spread of the epidemic in the world, factories around the world have entered a state of shutdown and production. The International Monetary Fund predicted that in mid-April, global GDP will decline by 20203 %, The latest report in May shows that the situation continues to deteriorate, and is concerned that global financial markets will increase turbulence. "

Liu Changlei analyzed that as far as the glass fiber industry is concerned, the main challenges include the following three aspects. First, the domestic downstream industry has resumed the process of resuming production slowly. Many companies are still in the state of resuming production and semi-resumption. The domestic demand market continues to be depressed. There was a significant deterioration in April, orders for foreign trade decreased significantly, and ocean shipping was shut down in large areas. The third is that it is difficult for Chi Kiln enterprises to carry out large-scale production capacity control, and is facing increasing inventory pressure and capital pressure.

The composite material industry was mainly affected by the domestic epidemic situation, and a large-scale production shutdown was observed in the early stage. With the alleviation of the domestic epidemic, many companies have resumed work one after another. However, due to the slow recovery of demand in the downstream market, many companies are currently in a state of low orders and insufficient construction. With the introduction of the national economic stimulus plan and the recovery and development of the domestic economy, the composite material industry will still face two major problems: First, the environmental protection and sustainable development issues have not been effectively resolved, volatile organic waste gas and corner waste and waste The management technology and equipment of products still need to be further studied and practiced. Second, the industry ’s extensive development model has not been fundamentally improved, the homogenization competition in the low-end market is serious, and the problems of insufficient application research capabilities in the high-end market have not been fundamentally resolved. . If the above problems cannot be solved well and the transformation and high-quality development is accelerated, the future development space of the industry will inevitably be greatly affected.

When talking about the future development path of enterprises and industries, Liu Changlei believes that the industry must keep up with the high-quality development and transformation of China's economy, and it currently faces multiple challenges: enterprise development still mainly depends on the input of resources and low-cost labor and other factors, and the production capacity is blindly expanded. Vicious competition with homogenization still occurs from time to time, insufficient automation and intelligent promotion of production technology and equipment, insufficient awareness and ability of technology, product and application R & D innovation and achievement protection; the problem of "three wastes" treatment of composite product production has not been fundamental To solve this problem, the industry lacks a group of leading companies with scale, strength, and global influence; the road of differentiated, professional, and standardized development in the industry has a long way to go.

For the future development of the industry, Liu Changlei suggested:

One is to continue to do a good job in production capacity control to ensure stable supply and demand in the market. Facing the severe domestic and international market situation, the entire industry must first unify consensus and actively carry out cooperation in capacity regulation and control to ensure that there is no major fluctuation in market supply and demand. Especially in terms of fiberglass kilns, it is necessary to strictly control the approval and construction of the proposed kiln projects, continue to postpone the commissioning of new and cold-repaired kiln production lines, and promptly shut down expired kiln production lines and environmental protection standards are not met. Low-end kiln production line, thus effectively alleviating and controlling enterprise inventory pressure. Other glass fiber and product companies and composite material product companies should also strictly control the project investment approval, avoid duplication of construction and blind expansion of production capacity, and ensure the safety of the company's capital chain and the control of investment risks.

The second is to take market demand as the guide and do well the supply-side structural reform. The 19th National Congress of the Party clearly stated that China's economy has shifted from a stage of rapid growth to a stage of high-quality development. At the same time, China is increasing its investment in the construction of new infrastructure, including infrastructure in the fields of technological innovation such as artificial intelligence, as well as major livelihood areas for consumption upgrades. The whole industry should actively carry out supply-side structural reforms under the guidance of national macroeconomic regulation, capital investment, and changes in the downstream market demand structure. On the one hand, it is necessary to solve the problems of uncoordinated industry development, including the uncoordinated supply and demand of production capacity, the uncoordinated regional distribution, the uncoordinated development of the internal and external markets, the uncoordinated product homogeneity and the differentiated demand, and on the other hand, it should serve the green development transformation Need, actively carry out the research and development and promotion of green application and intelligent application related products, focusing on the fields of electronic communication, transportation, construction, environmental protection, new energy, modern agriculture and animal husbandry, rural toilet renovation, lightweight building board, intelligent logistics and other fields The use of glass fiber products and composite materials products has steadily expanded the market scale.

The essential requirements for new infrastructure in the new era are innovation, environmental protection and consumption upgrade. Therefore, enterprises should gradually shift from relying on the input of resources and low-cost labor and other factors to being driven by innovation, relying on technological innovation, and solving various problems faced by enterprises in the development process.

Through technological innovation, production technology and equipment innovation should be continuously realized, the transformation will be more efficient, more professional and greener, and the problem of serious homogenization and competition will be completely eliminated. To continue to do a good job in combating and eliminating ceramic fiber glass and products, continuously improve the clean production technology and equipment of glass fiber, steadily promote the automation and intelligent development of composite materials, and vigorously promote thermoplastic composite materials (especially continuous fiber reinforced thermoplastic composite materials) Production technology and equipment, and actively carry out R & D and practice of composite material environmental protection technology and equipment.

Through technological innovation, we must achieve the improvement of product quality and added value, respond to and meet more diverse, personalized, and differentiated needs, and optimize product supply. Stably improve the performance index and market scale of glass fiber superfine yarn and its products, low dielectric glass fiber and its products, thermoplastic glass fiber and its products, thermoplastic logistics trays, building templates and other products, and actively develop high-performance glass formulas and high-quality glass Development and application of fiber infiltrant, continuous fiber reinforced thermoplastic continuous pipe and other products.

The third is to do a good job in energy conservation and emission reduction, and transform into high-quality development. With the continuous promotion of the national ecological civilization construction strategy and the implementation of the high-quality development strategy, doing a good job in energy conservation and emission reduction is not only an obligation for enterprises, but also an expedient measure for enterprises to reduce production costs and improve resource utilization efficiency. Instead, it becomes the only way for enterprises to implement strategic transformation and upgrading. The association is cooperating with the Ministry of Ecology and Environment to formulate environmental protection performance grading of glass fiber and composite materials industry and technical guidelines for coping with severely polluted weather, emission standards for air pollutants in glass fiber industry, and evaluation index system for clean production in glass fiber industry. The industry's environmental protection policy is becoming more and more perfect, and linked with technology, taxation, finance, land and other industrial policies, it can play an effective and differentiated management for different types of industry enterprises, and gradually become an "invisible threshold" for guiding and ensuring the standardized development of the industry. If enterprises want to strive for a better external development environment in the future development process, they must first do a good job in energy conservation and emission reduction