The demand of the hottest glass fiber market has s

The demand of the glass fiber market has shown a rapid growth trend in recent years

Zhou Huan, chief analyst of Huatai United Securities Building materials industry, was a guest of the voice of the economy program to analyze investment opportunities in the building materials industry

host: what is the current situation and development of new building materials in our country

Zhou Huan: we are different from countries such as Japan and the United States. Because we mainly use the traditional reinforced concrete building structure. For example, the United States, including Japan and some developed countries in Europe, can see that many of their houses are actually such a lightweight structure with relatively low floors, which leads to a large difference between our country and them in terms of building materials. For example, the proportion of steel bars and cement we use will be much higher than them. Therefore, in a country as large as the United States, its annual cement consumption may be about 100 million to 200 million tons, accounting for only 5% to 10% of our country. So I think so. The improvement of the application of emerging building materials in the future, on the one hand, depends on a change in the whole building structure of our country, and on the other hand, depends on the improvement of an energy conservation and emission reduction requirement we just mentioned, especially in the aspect of policy promotion. With the further mandatory requirements of the policy, such as Low-E glass, including some thermal insulation materials for external walls, may be more and more used in some domestic buildings

host: among the new materials of building materials, one is called special glass fiber. Can you explain its characteristics to our listeners? What is the current market demand? In addition, its application

Zhou Huan: in fact, strictly speaking, glass fiber is not directly used in the construction field, but has a wide range of applications. For example, when we go to the park, the yacht we take is actually made of glass fiber, including the seats in bars or stadiums. Glass fiber is actually made of natural ore, which makes the sample subject to axial tension under the action of axial load. After scientific calculation and proportioning of various components, a powder homogenization is carried out, and then dissolved at high temperature, and then drawn, and then some products are formed. This advantage means that it has high strength, high elasticity, electrical insulation, corrosion resistance and other characteristics. In fact, as a composite material, 7 Bearing reinforcement material, so its downstream application is still relatively wide. In addition to what we have just said, in fact, it is also widely used in industry, such as oil and gas pipelines. Because it has a relatively good corrosion resistance, including these materials used in automobile parts, its application field is relatively broad

in fact, if we look at the future trend, there will always be some defects in the performance of a single metal or nonmetal. In fact, from the perspective of scientific and technological trends, in order to make up for the defects of single materials, the application of composite materials will be more and more extensive in the future. Glass fiber is actually a very good reinforcing material in a composite material. It is a polymer material combined with a certain theme. So we think its future development prospects are very broad. I began to study the glass fiber industry in 2004. In fact, from 2004 to now, except for the impact of the financial crisis in 2008, the global demand for glass fiber shrank to a certain extent. In other years except that year, it should be said that the demand for glass fiber shows a rapid growth trend

host: look at the listed company in this industry, China fiberglass. What kind of investment highlights does this company have in terms of fundamentals? Introduce it to us

Zhou Huan: China Fiberglass is actually the largest fiberglass production enterprise in China at present. The production of glass fiber is mainly carried out through its subsidiaries. Because the concentration of glass fiber in our country is very high, there are mainly three large enterprises, China glass fiber, Taishan glass fiber, and a listed company Chongqing International, which together account for more than 60% of China's glass fiber market. In the past few years, thanks to the strong demand for glass fiber in the whole world, China's glass fiber production capacity is actually in a stage of rapid expansion

host: many people on our SMS platform also asked about Changhai shares. Can you introduce this company to us

Zhou Huan: in fact, Changhai shares does not directly produce glass fiber, but glass fiber products. From the industrial chain, it should belong to a downstream enterprise like China fiberglass. Because we have also seen a rapid growth trend in the production capacity of glass fiber yarn in China in the past decade. At present, China is the largest supply base of glass fiber yarn production capacity in the whole world. In fact, the main reason is that we broke through the technical bottleneck of large-scale production, and then the global production capacity of glass fiber yarn was transferred to China due to cost reasons. Looking forward to the future, we judge that the second round of industrial transfer may also occur, so this industrial transfer is actually no longer fiberglass yarn, but fiberglass products, the main product produced by Changhai. Because at present, although we still have a relatively large advantage in the production capacity of glass fiber yarn, when the downstream is close to the application field, in terms of glass fiber products, no matter the application variety or the technical level, we will still have a relatively large gap compared with similar foreign enterprises. In fact, the glass fiber products industry is different from the upstream yarn industry. Yarn is actually a large-scale production. In fact, it has a relatively large requirement for the size of enterprises to make due contributions to the development of enterprise land integration. Therefore, we call it front-end scale. So glass products are actually a production feature of multiple varieties and small batches, which is actually more suitable for some small enterprises to grow in it. On the one hand, companies like Changhai have relatively high technical level, on the other hand, they can quickly expand and strengthen in this segmented market by raising funds through listing advantages, So we believe that the future will also enter such a stage of rapid growth

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