(China Glass Network) Benefit from economic recovery, the global glass fiber industry in 2012 is expected to show the supply gap. 2001-2007,the growing rate of global demand for glass fiber was about 7%. The second half of 2009 after the financial crisis, the industry began to recover, the global need of glass fiber was 4.35 million ton, and will be reach to 4.83-5.41million ton at the growth rate of 11%-12% in two years. The global outputs is 4.715 million ton in 2010, will be achieved 4.88-5.20 million ton in two years, it needs to be improved. In the long run, the global demand growth rate will be reach to 6.3% in 5 years, 5.9million ton.
China will be the fastest growth market in the world, the domestic demand will be 2.52millin ton, accounting for 43% of global share. 2004-2010, the growth rate of China's consumption of glass fiber is 25%, far higher than the global level. After Crisis, the import growth rate of 75%, 22% of export growth for glass fiber, domestic began to place the export market. China will be the feast growth market in 5 years, and will achieved 2.52 million ton in 2015, global share will be 43%,China will become the world's largest producer and consumer. In the view of supply, the growth rate far below the demand.
Monopolistic competition was the world's glass, while the domestic downstream processing competition is fragmented. The world largest Glass companies shares 84% of the market , they are OC, rock, Chongqing International, Taishan Fiberglass, PPG and JM .
The largest three domestic companies share about 74% of the total market, and in a rising concentration trend. Foreign products and further processing sectors also led by large enterprises, while mainly small businesses and the low-end products in China. Deep processing of products currently is rising, the capability of producing high-end glass fiber and deep-processing are improved, and having big profit, which will become a developing trend.
2011, the glass fiber companies begin to raise price, the gross margin of upstream production is raised, while the deep processing profit is suppressed. Steady growth of the demand in the long-term, the enterprises are still possible to continue to raise prices, but the upper glass yarn companies have high bargaining power , the downstream deep-processing enterprises are relatively weak.
Estimate the industry, and give "promising" reward to some company , recommends China Fiberglass and Changhai Share. Company side, ① recommended the largest domestic glass companies, and some of companies that would produce further processing products. Purchase the Jushi group. ② Recommended Changhai shares , which is one of the largest non-woven glass fiber companies, and can continuously expand the outputs.
Risk Warning: the recovery of global economic hasn’t reached the expectation, which will effect on the industry .
