China Galaxy Securities Co., Ltd. has released a research report indicating that the high prosperity of specialty fiberglass products is strongly certain. Combined with a slow release of supply-side capacity, the supply-demand tightness for electronic fabric is expected to persist in the short term, with prices still holding upward expectations. Fiberglass companies with relevant capacity layouts are poised for profit growth. The supply-demand contradiction in the cement industry is prominent and requires continued policy efforts to accelerate industry capacity elimination. The overseas cement market shows promising development prospects, with both demand and prices superior to the domestic market. Cement companies with advantages in overseas capacity layout are expected to benefit, as their international operations can support corporate performance. Urban renewal is driving demand for consumer building materials in renovation and repair markets, and consumption upgrades will boost demand for high-quality green building materials. Leading companies with channel layout and brand advantages are likely to consolidate their market positions. The expectation for terminal demand improvement is weak, and "anti-involution" may accelerate the optimization of the glass supply side. The main views of China Galaxy Securities Co., Ltd. are as follows:
Fiberglass: Coarse Yarn Market Weak with Price Pressure, Electronic Yarn Price Hikes Strong
Regarding coarse yarn, the supply increase in July was limited, and inventory rose slightly but remained under control. The release of rigid demand was average, wind power orders fell short of expectations, thermoset sales decreased, and thermoplastic sales remained stable. Under the weak supply-demand situation, coarse yarn company quotes fell compared to the previous period. Looking ahead, the short-term market is sluggish, with increased market wait-and-see sentiment. It is expected that coarse yarn prices will likely remain weak and stable in August. For electronic yarn, prices for electronic yarn and fabric continued to rise in early July, with significant increases. The supply increase of electronic yarn was limited, and downstream CCL factories still had full orders for the month. Demand for mid-to-high-end products maintained a certain increment, and the electronic yarn and fabric market overall continued to be in short supply. Going forward, companies are in a zero-inventory state, and combined with their capacity expansion plans, the short-term supply is expected to remain tight, with the price hike trend likely to continue.
Cement: Weak Off-Season Demand, Prominent Supply Pressure, Prices Continue to Weaken at Low Levels
Cement demand was seasonally sluggish in July. The nationwide clinker line shutdown rate was lower than in June, the industry faced significant supply pressure, inventory continued to rise, and the national average cement price showed a downward trend, with prices at historic lows. Looking ahead, August remains in the traditional off-season. Demand is expected to remain weak, with significant supply and inventory pressure, leading to further declines in cement prices. With the arrival of the "Golden September and Silver October," demand may see a seasonal improvement, but the effect on price support may be limited, and the extent of price improvement is expected to be modest.
Consumer Building Materials: Short-Term Home Renovation Demand Under Pressure, Leading Companies' Value Emerges in the Stock Era
From January to June 2026, retail sales of building and decoration materials fell by 8.8% year-on-year, with the decline widening by 0.4 percentage points from the January-to-May period. Single-month retail sales in June fell by 10.5% year-on-year but increased by 14.2% month-on-month. The decline in real estate sales has suppressed the volume of home renovation retail building materials demand. Looking ahead, the continued implementation of the medium-to-long-term urban renewal strategy will release demand for repairs and renovations. The advancement of "good housing" construction standards will increase the market penetration of high-quality green building materials. Leading consumer building materials companies with product quality advantages and environmentally friendly production technologies are expected to benefit. Additionally, current product price pressure combined with raw material cost pressure continues to squeeze the profits of small and medium-sized enterprises, which may accelerate industry consolidation, with market concentration gradually shifting towards leading companies.
Float Glass: Weak Demand Combined with High Enterprise Inventory, Prices Continue to Bottom Out
In July, hot and rainy weather affected float glass demand. Orders from downstream processing plants improved insufficiently, transactions were sluggish, and overall production and sales struggled to balance. Monthly production capacity decreased, enterprise inventory remained stable at a high level, and the pressure to destock was significant. Float glass prices continued to bottom out in July. Looking ahead, the contraction of terminal real estate demand, combined with the seasonal off-season in August, suggests that short-term demand will remain weak. Under the pressure of high enterprise inventory, prices are expected to decline further in August, though the rate of decline may narrow.
Risk Warning: Risks of significant fluctuations in raw material prices, risks of downstream demand falling short of expectations, risks of industry new capacity exceeding expectations, and risks of policy implementation falling short of expectations.
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