--- title: "Shenwan Hongyuan: Price increase for electronic yarn and electronic fabric, profitability of glass fiber is expected to recover" type: "News" locale: "en" url: "https://longbridge.com/en/news/229710520.md" description: "Shenwan Hongyuan released a research report stating that on February 24th, at least 9 electronic yarn companies announced a price increase of 800 yuan/ton, and electronic fabric prices increased by 0.3 yuan/meter, reflecting the urgent need for companies to improve their profitability. This price increase is a continuation of the fiberglass industry's recovery trend, and future profitability is expected to be restored, with other fiberglass products also likely to see further price increases" datetime: "2025-02-26T07:53:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/229710520.md) - [en](https://longbridge.com/en/news/229710520.md) - [zh-HK](https://longbridge.com/zh-HK/news/229710520.md) generator: "portal-rs" --- # Shenwan Hongyuan: Price increase for electronic yarn and electronic fabric, profitability of glass fiber is expected to recover According to the Zhitong Finance APP, Shenwan Hongyuan released a research report stating that on February 24, at least nine companies, including CJS, announced a price increase of 800 yuan/ton for various types of fiberglass electronic yarn (G series) and a price increase of 0.3 yuan/meter for various types of electronic cloth. This round of price increases is mainly due to the long-term low prices of electronic yarn and electronic cloth, with many companies experiencing weak profitability or even long-term losses. The price increase reflects the urgent demand of companies to improve their profitability. From an industry perspective, this is part of the continuous price recovery trend in the fiberglass industry, and future profitability in the fiberglass industry may further recover, with other varieties still having the potential for price increases. ## Shenwan Hongyuan's main viewpoints are as follows: **Event: Multiple electronic yarn companies concentrate on price increases, raising the profitability center of electronic cloth** On February 24, at least nine companies, including CJS, Taishan Fiberglass, Chongqing Tianhuan, and Guangyuan New Materials, announced a price increase of 800 yuan/ton for various types of fiberglass electronic yarn (G series) and a price increase of 0.3 yuan/meter for various types of electronic cloth. This round of price increases is mainly due to the long-term low prices of electronic yarn and electronic cloth, with many companies experiencing weak profitability or even long-term losses. The price increase reflects the urgent demand of companies to improve their profitability. **This round of price increases is a continuation of the price recovery trend for multiple fiberglass products since the first quarter of 2024** Starting from the first quarter of 2024, products such as ordinary alkali-free fiberglass yarn, wind power yarn, chopped yarn, thermoplastic yarn, and twisted yarn have successively increased prices in March, June, and November, indicating a high certainty of a rebound in the price center of the fiberglass industry. There is a possibility that prices of other types of fiberglass products may further increase. According to Zhuochuang Information, on February 20, 2025, the national average price of G75 electronic yarn was about 8,400 yuan/ton, and the average price of electronic cloth 7628 was 3.85 yuan/meter, which decreased by 700 yuan/ton and 0.15 yuan/meter respectively compared to the third quarter of 2024, with prices at relatively low levels. **On the supply side, electronic yarn has not seen new production capacity ignition for two and a half years, and the industry structure is generally stable** According to Zhuochuang Information, after the ignition of the third line of Jushi Tongxiang intelligent electronic yarn in June 2022, there has been no new production capacity for over two years. In 2023-2024, only five lines with a total capacity of 228,000 tons of electronic yarn will resume production after maintenance, with no substantial new ignition of electronic yarn production capacity. In January 2025, Linzhou Guangyuan's fourth line with an annual capacity of 2,000 tons of low-dielectric fiberglass production line was ignited, mainly producing high-quality low-dielectric products, which does not affect the supply structure of ordinary electronic yarn. **On the demand side, the application of electronic yarn is expected to continue upgrading** Electronic yarn is mainly used as a substrate for copper-clad laminates in integrated circuits, which is highly related to the demand in the electronics industry. With the continuous strong demand for 5G base stations/AI servers, the demand for low-dielectric electronic yarn, especially those used in high-frequency and high-speed copper-clad laminates, is expected to continue to grow. Chinese companies are accelerating their layout in the low-dielectric electronic yarn and electronic cloth fields, with companies such as Taishan Fiberglass, International Composites, Honghe Technology, and Guangyuan New Materials actively laying out production capacity for low-dielectric electronic yarn and electronic cloth, continuously achieving technological breakthroughs and improving production stability, and are expected to gradually benefit from the increased penetration of low-dielectric fiberglass yarn brought about by the rapid development of 5G and AI **Investment Advice** **Understanding the recent price increase of electronic yarn from three perspectives:** 1) This is part of the continuous price recovery trend in the fiberglass industry, and future profitability in the fiberglass industry may further improve, with other varieties still having the potential for price increases; 2) The general price increase of electronic yarn and electronic fabric benefits companies that are leading in the layout of the electronic yarn and electronic fabric sectors; 3) The supply of low-dielectric fiberglass yarn remains tight, and after the price increase of electronic yarn, profitability will improve, which may further increase investment in the research and production of low-dielectric products, with the potential for further breakthroughs in low-dielectric technology. In summary, we recommend CJS (600176.SH) and suggest paying attention to SINOMATECH (002080.SZ), International Composites (301208.SZ), and Honghe Technology (603256.SH). **Risk Warning** 1. The concentration of new production capacity may bring supply pressure, and subsequent price increases may not be fully realized; 2) There are difficulties in technological breakthroughs for low-dielectric products, and supply stability is limited ### Related Stocks - [600176.CN](https://longbridge.com/en/quote/600176.CN.md) - [605006.CN](https://longbridge.com/en/quote/605006.CN.md) - [002080.CN](https://longbridge.com/en/quote/002080.CN.md) - [300196.CN](https://longbridge.com/en/quote/300196.CN.md) - [301299.CN](https://longbridge.com/en/quote/301299.CN.md) - [603256.CN](https://longbridge.com/en/quote/603256.CN.md) - [06806.HK](https://longbridge.com/en/quote/06806.HK.md) ## Related News & Research - [China Jushi Co.: Net profit jumped 73.87% YoY on strong sales, margin gains, and robust cash flow](https://longbridge.com/en/news/296455427.md) - [Negative Link Announces Global Expansion and Next Phase of Growth](https://longbridge.com/en/news/296644416.md) - [09:30 ETPoolking Advances Fiberglass Sand Filter Technology for Large-Scale Water Treatment Projects](https://longbridge.com/en/news/296114460.md) - [HME: Record revenue, strong netbacks, and robust shareholder returns highlight the quarter](https://longbridge.com/en/news/296488618.md) - [CMOC Last Soars 5%+; Interim Profit Surges 86%, Revenue Hits Record High; Interim DPS Resumed at RMB0.095](https://longbridge.com/en/news/296423052.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**