According to a research report from CICC, electronic fabric prices continued to increase in early April. For instance, International Composite's 7628 product mainstream tax-inclusive quotes reached 6.1-6.3 yuan per meter, up 0.5 yuan year-over-year. Mitsubishi Gas Chemical raised prices for its full range of copper foil substrates, prepreg/resin base materials, and copper foil resin sheets by 30%. Further price hikes for electronic fabric remain possible throughout the year, as AI-related demand continues to occupy loom capacity needed for standard fabrics. Domestic looms struggle to meet production requirements for the 7628 model used in automotive circuit boards and consumer electronics. Overseas export volumes have reached a new high plateau in recent years, with opportunities seen for international price increases driven by energy costs and market share gains for domestic companies. CICC's main views are as follows: After recent price increases, coarse yarn and electronic fabric prices are stabilizing. The supply capacity of domestic companies is viewed favorably amid global energy price trends. Domestically, the average tax-inclusive price for 2400tex ranged from 3,550 to 3,800 yuan per ton last week, up 50 yuan sequentially, likely driven by rising costs. Electronic fabric still has room for further price increases due to ongoing loom capacity constraints from AI demand and low inventory levels across the full industry chain. Overseas, export volumes have entered a new high range in recent years, with positive outlook for international price increases fueled by energy costs and expanding market share for Chinese firms. China Jushi (600176.SH) and Sinoma Science & Technology (002080.SZ) are recommended. Building materials shipments accelerated short-term, with second-quarter focus on price hike implementation. Due to rising costs of asphalt, emulsion, PVC/PPR/PE and other raw materials, combined with collective price increases in waterproofing, coatings, and pipes, downstream buyers accelerated purchases temporarily. Entering the second quarter, attention is advised on the implementation progress of price increase notices by segment. Price increases are more challenging in consumer channels than engineering channels, and with higher industry concentration, coordination in this round of hikes may be better than previous cycles. Skshu Paint (603737.SH), Beijing Oriental Yuhong Waterproof Technology (002271.SZ), and Beijing New Building Materials (000786.SZ) are recommended. China Lesso (02128) and Zhejiang Weixing New Building Materials (002372.SZ) are suggested for monitoring. Float glass and cement: Domestic supply shows slight contraction, overseas profitability promising. Daily melting volume for float glass remained at 145,000 tons per day last week, down 6,720 tons from the start of the year. Currently, petroleum coke-based float glass production is losing over 100 yuan per ton. Price rebound opportunities from cold repairs are worth watching. Xinyi Glass (00868) and Zhuzhou Kibing Group (601636.SH) are recommended. The average tax-inclusive cement price declined by 3 yuan per ton sequentially last week, with fundamentals still weak. The industry supply-demand balance is expected to gradually improve driven by slower variables like production overcapacity restrictions and carbon trading. Anhui Conch Cement (600585.SH) is recommended. Risk factors include demand declines exceeding expectations, cost increases surpassing forecasts, and price hike pass-through falling short of expectations.
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