Economic Operation Analysis of China's Glass Fiber Industry in the First Half of 2012

In early June,the Access Conditions for Glass Fiber Industry(revised in 2012)was published on the website of the Ministry of Industry and Information Technology.At present,it is being revised according to the opinions after publicity,and the implementation rules are being worked out intensively.

Since the outbreak of the global financial crisis in 2007,China Glass Fiber Industry Association has put forward the policy of"limiting production,guaranteeing price and adjusting structure"and revised the"Access Conditions for Glass Fiber Industry",which has raised the threshold of industry access,curbed duplicate construction and blind expansion,and prevented overcapacity and vicious competition at low prices.In the face of the current complicated situation at home and abroad,the world economic growth is weak,the international market demand is weak,the"double-anti"investigation(anti-dumping,anti-subsidy)against China's glass fiber products has not been relaxed,and the domestic environment is in a difficult way,China Glass Fiber Industry Association timely proposes to develop deep processing products.In the first half of the year,the total output of glass fiber in China was 1.41 million tons,and the profit of the whole industry reached 3.04 billion yuan.

Initial results have been achieved in controlling total growth.

From January to June,the main business income of the whole industry was 51 billion 450 million yuan,an increase of 12.65%over the same period last year.The total profit was 3.04 billion yuan,down 0.08%from the same period last year,and the loss of loss-making enterprises reached 460 million yuan,an increase of 121%over the same period last year.

In the second quarter of this year,the growth rate of glass fiber yarn output dropped significantly.In the first half of this year,the output was 1.411 million tons,a slight increase of 3.6%compared with the same period last year,indicating that the work of controlling total growth has begun to improve,and has achieved fruitful results in limiting production and guaranteeing prices.Leading enterprises such as Taishan,Jushi and Chongqing Compound have played a leading and exemplary role.

In the first half of 2012,the sales rate of the whole industry continued to rise,reaching 97.57%in May,which was close to the sales rate of the same period last year,but fell in June.With the slowdown of the growth rate of glass fiber production and the increase of sales rate in a single month,the problem of inventory backlog in enterprises has been temporarily alleviated.

From January to June,the main business income of the whole industry was 51 billion 450 million yuan,an increase of 12.65%over the same period last year.The total profit was 3.04 billion yuan,down 0.08%from the same period last year,and the loss of loss-making enterprises reached 460 million yuan,an increase of 121%over the same period last year.Looking at the development trend of the glass fiber industry since 2006,the profit level of the whole industry began to decline this year after reaching its peak in 2011.It is urgent to adjust the product structure,and the situation of a major reshuffle of the whole industry will emerge.Enterprises should make adequate preparations to deal with it,either adjust or change careers.

From January to June,the main business cost of the whole industry reached 43.22 billion yuan,an increase of 15.16%over the same period last year.Enterprise management expenses increased by 13.06%and financial expenses increased by 20.37%year on year.With the continuous emergence of the effect of national monetary policy regulation and control,the factors of price rise have gradually stabilized.Compared with the 39.5%increase in the cost of main business last year,the increase in operating cost of enterprises slowed down in 2012,but it is still affected by recruitment difficulties,RMB appreciation,capital shortage,and the implementation of the ladder electricity price and natural gas reform this year.The ability of enterprises to expand exports has declined,and many domestic enterprises have an embarrassing situation that the profit level of export products can not be improved.

The average import price has risen sharply.

In the first half of the year,the average import price of glass fiber and products was 4445.35 US dollars/ton,which was higher than the average price of 4407.58 US dollars/ton in 2011.

Imports continued to decrease.In the first half of the year,the import volume of glass fiber and products was 105,000 tons,with a year-on-year decrease of 6.98%;the amount of imported goods was 466 million dollars,with a year-on-year decrease of 3.65%.The average import price of glass fiber and products was 4445.35 dollars/ton,which was higher than the average price of 4407.58 dollars/ton in 2011.Imports of other glass fiber nets,mats and boards have increased,and their import prices have risen sharply,reflecting that there is still a gap between China and foreign countries in this respect.

The living space of glass ball and crucible method enterprises is reduced.

Although the main export product is still glass fiber yarn,with a total export of 302,000 tons in the first half of the year,its export volume has continued to decline since 2008,and its past glory is difficult to continue.If it can not go out,it will turn to domestic sales or overstock.The living space of glass ball and crucible enterprises is bound to become smaller and smaller.

In the first half of the year,the export of glass fiber and its products was 619,000 tons,with a growth rate of 1.59%;the export volume was US$998 million,an increase of 2.48%compared with the same period last year,and a trade surplus of US$532 million was realized.The average export price was 1612.85 US dollars/ton,higher than 1605.24 US dollars/ton in 2011,reaching the highest export price in recent years.

Although the main export product is still glass fiber yarn,with a total export of 302,000 tons in the first half of the year,its export volume has continued to decline since 2008,and its past glory is difficult to continue.If it can not go out,it will turn to domestic sales or overstock.The living space of glass ball and crucible enterprises is bound to become smaller and smaller.Since 2011,the export volume of glass fiber fabrics(less than 30 cm)has doubled,while the export volume of glass fiber products with high added value,such as glass fiber sheets(Bali yarn),other glass fiber mesh pads,chopped glass fibers and other glass fiber woven fabrics,has increased significantly.The trend of market development has long been clear,but with the sustained growth of domestic demand in the future,it is expected to gradually reduce the dependence on exports.

Jushi Group's waste silk recycling is worth learning

Jushi Group's annual output of 600000 tons of glass fiber base waste comprehensive utilization project mainly involves glass fiber waste recycling,glass fiber production sludge recycling and iron and steel industry slag recycling.

Enterprises in the glass fiber industry should adjust their product varieties and technologies rather than fight a price war.The adjustment of the product structure of the industry is bound to be a situation of"the capable go up and the mediocre go down".The 12th Five-Year Plan of glass fiber industry is not a dead letter,but a development direction based on the overall development of the glass fiber industry.The adjustment of industrial structure is not a matter of overnight,but if it can not keep up with the pace of the market,it will be eliminated by the market.

At present,we have seen that equipment enterprises in the glass fiber industry are actively exploring,such as the warp knitting machine of Changzhou Runyuan,the casing machine of Qingdao Sanxiang,and the research and development of sizing agents by enterprises such as Hubei Xinlantian.Although it is not perfect,there is still a gap,but as long as we persist in catching up,we will be able to catch up one day.Any industry may be"millet plus rifle",but it can not help enterprises to the end,nor can it make enterprises laugh to the end.

While seeking development,we must promote energy conservation and emission reduction,both hands must be hard,in this regard,Jushi Group has set a good example for the industry.As the largest glass fiber manufacturer in the world,Jushi Group not only pays attention to economic benefits,but also spares no effort to actively do a good job in environmental protection and fulfill its social responsibility.The project of comprehensive utilization of waste from glass fiber base with an annual output of 600000 tons is the top priority of Jushi Group's investment this year.The core construction of the project mainly involves the recycling of glass fiber waste,the recycling of glass fiber production sludge and the reuse of slag in the iron and steel industry.Sludge treatment and slag reuse technology is a new recycling technology developed by Jushi Group in 2011,which is in the leading position at home and abroad.This environmental protection project not only enlarges the scope of recycling,achieves the goal of zero discharge of solid waste of Jushi Group,but also greatly reduces the production cost of Jushi Group.After the project is put into operation,60000 tons of waste silk will be fully recycled every year,which can replace 60000 tons of batch materials,and the annual recovery of sludge can replace 8000 tons of fluorite raw materials and calcined limestone.At the same time,blast furnace slag from iron and steel industry can be recycled to replace dolomite,pyrophyllite and limestone up to 18000 tons.It will reduce the cost of raw materials by more than 30 million yuan annually,and it is expected that the cost will be fully recovered in less than three years.

China's Glass Fiber Enterprises Face Difficult Choices

China's glass fiber enterprises are facing a difficult choice.It is imperative to eliminate backward production capacity,introduce and develop new technologies,establish brand protection,improve the industrial chain,and strive to emerge several influential enterprises in the whole industry through product structure adjustment.

The Access Conditions for Glass Fiber Industry(revised in 2012)plays a very important role in promoting technological progress,eliminating backwardness,energy conservation and emission reduction,merger and reorganization,standardizing and guiding the investment behavior of the industry,restraining low-level redundant construction,and promoting the structural adjustment and optimization and upgrading of the industry.Publicizing and implementing the industry access announcement,so that all relevant enterprises in the industry can effectively implement the announcement management requirements,is the focus of the work of China Glass Fiber Industry Association in the second half of the year.

China's glass fiber enterprises are facing a difficult choice.It is imperative to eliminate backward production capacity,introduce and develop new technologies,establish brand protection,improve the industrial chain,and strive to emerge several influential enterprises in the whole industry through product structure adjustment,so as to greatly enhance the overall competitiveness of China's glass fiber.(China Fiberglass Industry Association)