玻璃纤维与电子布周报

China Materials Glass Fiber & E-fabric – Weekly Snapshot – 20260709 CITI’S TAKEChina’s glass fiber market remained bifurcated in the week ended July 9. Coarse roving prices came under further pressure as seasonal demandweakness persisted, with some second- and third-tier producers cuttingprices by Rmb50-100/ton to stimulate sales. In contrast, electronic yarnfundamentals remained exceptionally strong. July contract prices wereimplemented smoothly, while downstream CCL procurement demandremained robust. Despite incremental capacity ramp-up from newlyignited lines, effective supply growth remained limited, and shortagesacross multiple electronic yarn and electronic fabric specificationscontinued. We remain constructive on the electronic materials cycle,supported by near-zero inventories, persistent supply-demand tightnessand ongoing pricing power. Remain Buy on China Jushi. Anna WangAC+852-2501-2739anna.d.wang@citi.com Jack Shang, CFA+852-2501-2441jack.shang@citi.com Jimmy Feng+852-2501-7588jimmy.feng@citi.com Pricing– 1) The mainstream transaction price for 2400tex winding direct rovingdeclinedslightly to Rmb3,500-3,900/ton,with the national average atRmb3,778/ton, down 0.33% WoW but still up 2.98% YoY. Some second- and third-tier producers lowered prices by Rmb50-100/ton amid weak demand. 2) G75electronic yarn prices continued to move higher, with mainstream transaction pricesreachingRmb16,800-17,500/ton,implying an average transaction price ofapproximately Rmb16,988/ton, up 3.6% WoW. 3) 7628 electronic fabric pricesremainedelevated at Rmb8.5-8.7/meter,with new monthly pricing largelyimplemented. Cynthia Wu+852-2868-7813cynthia.d.wu@citi.com Supply– 122 furnace lines were in operation this week, with total capacity increasingmodestly to 9.038mtpa, up 0.56% WoW. The increase was mainly driven by thecommissioning of another 50kt electronic yarn line at China Jushi’s Huai’an zero-carbon production base, bringing additional electronic yarn capacity online. However,effective supply growth remained limited as newly ignited lines are still ramping up,while inventories of electronic yarn and electronic fabric remained near historicallows. Some downstream CCL customers reportedly faced difficulties securingmaterial and were willing to pay premiums for deliveries. Demand– 1) Roving: demand remained weak amid seasonal slowdown, hightemperaturesand heavy rainfall in southern China.Downstream processorscontinued operating at relatively low utilization rates, limiting procurement activity.2) Electronic yarn: demand remained exceptionally strong. CCL manufacturerscontinued to actively secure supply, while shortages persisted across multipleproduct specifications. High-end product orders continued to increase, and somesmaller downstream customers reportedly paid premiums to secure allocations. Outlook– 1) Roving: prices are expected to remain under pressure in the near term asseasonal weakness persists, inventories gradually build and demand recoveryremains limited. 2) Electronic yarn: we think prices are likely to stabilize following thelatest round of increases, but we expect further price hikes over the medium term.Industry inventories remain extremely low, supply-demand imbalance persists, anddownstream procurement enthusiasm remains elevated. Spot shortages are likely tocontinue, particularly for high-end products and selected specifications. See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations Not for distribution in the People's Republic of China, excluding the Hong Kong Special Administrative Region and QualifiedForeign Institutional Investors. © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: Citi Research, SCI © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: Citi Research, SCI China Jushi (600176.SS; Rmb55.7; 1; 10 Jul 26; 15:00) Valuation Our target price for Jushi of Rmb43.4/share is based on +1sd above the stock’s historical average P/E since its listing due to: 1)higher 2026E earnings; 2) a higher multiple (from 19.8x, +0.3sd above historical average previously), thanks to continuous pricehikes in E-fabric due to tight supply and potential multiple rerating if Jushi’s specialty E-fabric products ramp up.We set ourTP using 26.1x PER on 2026E NI. Risks Major downside risks to the share price include: 1) weaker-than-expected demand for glass fiber products; 2) risingenergy/power costs; and 3) greater-than-expected capacity additions. Major upside risks include: 1) better-than-expecteddemand; and 2) supply-side discipline that helps protect margins. Any of these risk factors could cause the shares to deviate from our target price. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS +1-210-677-3788 Appendix A-1 ANALYST CERTIFICAT