China: Demand for electronic fiberglass cloth soars in China.

Storyline Demand for electronic fiberglass cloth soars in China Demand for electronic fiberglass cloth is rising in China prompting an increase in production and prices for the product. Fiberglass cloth is a key element in the manufacturing of data center servers, smartphones, and printed circuit boards, amongst other things. Companies that make the cloth say they need months to fill certain orders. Wei Zecong, General Manager, Chongqing Polycomp International Corporation: "The capacity utilization rate for electronic fiberglass cloth exceeds 100 percent. The production lead time is over 2 months, and for certain ultra-thin fabrics and high-performance advanced fabrics, the lead time exceeds 4 months." As of early June, commonly used electronic fiberglass cloth had undergone five rounds of price increases, with the average price now hovering at around 1 dollar and 10 cents per meter, a 100-percent increase compared to lows in Q3 last year. Raw materials to produce fiberglass cloth are also becoming scarce. The person in charge of a raw materials company in east China's Zhejiang says supplies have been tight this year. Ren Yingjie, General Manager, Zhejiang Wazam New Materials Co.,Ltd.: "Our procurement and marketing teams have gone directly to our upstream suppliers' factories to expedite deliveries. Previously, our inventory level would typically last about one to one and a half months. Since the beginning of this year, it's basically been consumed within about 7 days." According to a report from market research firm Fortune Business Insights, the global fiberglass fabric market is projected to grow from 5.5 billion U.S. dollars this year to 9.7 by the year 2034, with a compound annual growth rate of more than 7 percent. [Restrictions: No access Chinese mainland]