The international copper price has risen by as much as 17.5% since February this year, and the price trend of glass fiber cloth, which belongs to the upstream of PCB, has attracted more attention from industry insiders. Industry insiders pointed out that since the beginning of this year, the trading volume of low - and mid-range glass fiber cloth has increased and the prices have gradually become firm, while high-end cloth is in a low volume consolidation pattern. The market is concerned about the impact of the 60000 ton new kiln of Chinese glass fiber giant Jushi, which is about to ignite and start production, on the supply.

In the Taiwan market, Taiwan Bicheng plans to conduct a two month shutdown and cold repair from May to July, and the industry is also observing, which may affect the latest market inventory situation.

Copper foil and fiberglass cloth are the two main raw materials for the upstream copper foil substrate (CCL) of PCBs. Among them, the three-month copper price on the London Metal Exchange (LME) fell by 2% to $9226 per ton, but the international copper price has risen by as much as 17.5% since February. Even investment institutions estimate that the international copper price will reach $10000 per ton this year, causing a wave of price increases for Taiwanese CCL.

At the same time as the international copper price skyrocketed, the market for fiberglass cloth has remained relatively stable this year, with high trading volume in the mid-range fabrics of 7628 and 75G, currently showing a slow upward trend. However, the 60000 t/a glass fiber yarn of China Jushi Building, a major factory in Chinese Mainland, will be ignited from March to May. Two months after the ignition, it will be produced and handed over to the fabric factory for new production capacity, which may also create supply side pressure.

The quotation of electronic glass fiber cloth has gradually increased since August last year. According to the different types of cloth, the low point in July has increased by 20% to 40% so far, mainly benefiting from the rising demand after the COVID-19. Industry insiders pointed out that before the Spring Festival this year, some cloth factories had already shipped out of stock, indicating that the glass fiber industry has stepped out of the boom valley for two years, but the current market has encountered new uncertainties.

After August 2018, the number of new kilns in glass fiber factories in Chinese Mainland increased, resulting in a large increase in market supply. Under the pressure of oversupply, the industry has been in a downturn for two years. Until August last year, due to the slowing increase in market supply, the inventory of glass fiber cloth in CCL factory declined significantly, and the quotation has gradually moved out of the valley. Industry insiders have pointed out that based on the economic cycle of the fiberglass market over the years, the price of electronic fiberglass cloth has increased since August last year, which is in line with the trend of the fiberglass market having a two-year cycle in the past.

However, after the Spring Festival, the trading market situation of fiberglass cloth has changed from the rapid rise trend in the second half of last year. The trading of mid-range cloth types is active, but the prices are lukewarm. Taking the stock price of China Giant Stone, a major Chinese company, as an indicator, it has fallen 24.91% from its high point in the past two weeks.

At present, Taiwan Glass Fiber Fabric Factory includes Taiwan Glass, Dehong, Fuqiao and Jianrong, among which Taiwan Glass and Fuqiao are consistent factories that produce fiberglass yarn and fiberglass fabric. And Fuqiao has two fiberglass yarn kilns in Taiwan, as well as a total of 900 weaving machines on both sides of the strait.

Source: China Electronic Circuit Industry Association