[Webbing Network] Benefiting from the economic recovery, the global glass fiber industry is expected to show a supply gap in 2012. From 2001 to 2007, the global glass fiber demand compound growth rate was about 7%. After the financial crisis, the industry began to recover in the second half of 2009. In 2010, the global glass fiber demand was about 4.35 million tons, and the growth rate in the past two years is expected to be between 11% and 12%, that is, the demand is 4.83 million to 5.41 million tons. On the supply side, the global production capacity was 4.715 million tons in 2010. It is estimated that the production capacity will be 4.88 million to 5.2 million tons this year and next. Supply and demand are expected to continue to improve. In the long run, global demand growth will reach 6.3% in the next five years and will increase to 5.9 million tons in 2015.

    China is the world's fastest growing market in the future. Domestic demand in 2015 is expected to reach 2.52 million tons, accounting for 43% of the global total. From 2004 to 2010, the apparent growth rate of my country's glass fiber consumption reached 25%, much higher than the global level. After the financial crisis, the import growth rate of glass fiber yarn was 75%, and the export growth rate was 22%. Domestic products have also begun to replace the export market. China will be the fastest growing country in the world in the next five years. It is expected that the demand in 2015 will reach 2.52 million tons, accounting for 43% of the global demand from the current 36%. China will become the world's largest producer and consumer. However, in terms of supply, this year's domestic production capacity has increased by only several hundred thousand tons, and the planned output of the "Twelfth Five-Year Plan" has increased to 2.8 million tons, which is much lower than the growth rate of demand.

    The global glass fiber is in a monopolistic competition pattern, and domestic downstream processing is scattered and competitive. The world's six largest fiberglass companies OC, Jushi, Chongqing International, Taishan Fiberglass, PPG and JM have a market share of 84%. The total share of the three major domestic companies is about 74%, and the concentration is constantly improving to improve the bargaining power of enterprises. Foreign products and deep processing links are also dominated by large enterprises, while my country is mainly small enterprises and mainly low-end products. At present, the proportion of deep-processed products continues to increase, and high-end glass fiber and deep-processed products have high profitability, which will become the future development direction of the industry and is expected to attract large enterprises to enter.

    The market recovery in 2009 drove the demand for downstream products and composite materials, and the industry's production and sales rate rebounded rapidly. In 2010, it exceeded 98%. The profitability of deep-processing companies was the first to increase, and the profitability of the entire industry was high throughout the year. In 2011, domestic glass fiber yarn companies started to raise prices, the upstream glass fiber yarn companies' gross profit margin increased, and the profits of deep processing companies were suppressed. Under the steady growth of long-term demand, it is still possible for companies to continue to raise prices, but the upstream large glass yarn companies have higher bargaining power, and downstream deep-processing companies are relatively weak.

    As the improvement in supply and demand is expected to continue, risk agencies have rated this industry as "optimistic". The industry believes that China's largest glass fiber company, China Glass Fiber, which is expected to enter the deep processing field in the future, is expected to increase its revenue from 6.145 billion yuan to 7.381 billion yuan in 2011~2013. As one of the largest non-woven glass fiber products companies in China and Changhai's continuous expansion of production capacity in the past two years, it is expected that revenue from 2011-2013 will increase from 543 million yuan to 1.12 billion yuan.