Fiberglass news from “DD Fiberglass“, June 2nd, 2009.

In recent times, China fiberglass roving output grow slowly, the price bounces back to increase, but export situation is not improving.

From January to April, the four months in 2009, fiberglass roving output is 665 thousand tons, increased 5.7%, keeping at a low speed growth. As the fiberglass roving stock products gradually reduing, the fiberglass roving price begins to increase, but the export amounts decreasing more than 40% each month in the later 3 months brings much stress, the export still has severe situation.

Output grow slowly, Sales rate increases

In April 2009, China fiberglass roving output is 169 thousand tons, inceased 1.3%, furnace output 124 thousand tons, decreased 3.3%, Shandong output increased more than 20%, Zhejiang and Chongqing decreased more than 10%, Beijing and Jiangsu output decreased more than 40%.

From the four months sales situation, the sales rate increased monthly: February 89.1%, March 94.3%, April 101.1%. Esp, In April, Chongqing sales rate is 118%. While in Zhejiang, the sales rate was still low, it was only 87%, but it also increased compared with 77.5% in Februery and 85.6% in March. The companies’ limitation on output has good effect for the sales rate and fiberglass roving’s price.

Fiberglass roving price increased

From December in 2008, fiberglass roving price kept decreasing in the following 5 months, From April 2009, fiberglass roving price reached RMB 6000/ton, increased 53/ton than March, decreased 1249/ton than April in 2008.

Export sales and price were still low

In April 2009, fiberglass and fiberglass products export amounts was 66 thousand tons, decreased 40.7%, The decreasing amount more than 40% has lasted 3 months. From January to April, fiberglass and fiberglass products exported 250 thousand tons, decreased 40.1%, export value was 353 million dollars, decreased 44.1%. Esp, fiberglass roving export amount decreased 52.6%, fiberglass fabrics export amount decreased 42.2%.

With the low export amount, the export price was also lingering in a low level with less than USD 950/ton on FOB basis, decreased 190/ton than the average price of 2008; fiberglass fabrics export price is less than USD 2100/TON on FOB basis, decreased 330/ton than the average price of 2008, There was no indication of improvement in the foreign market, the export may keep decreasing in the later time, It may be difficult in the first half year of 2009, even the whole year, the companies need to be prepared in the long run.