China's Carbon Fiber Industry Ushered in An Important Development Opportunity

Carbon fiber is one of the few industries with high demand growth. In 2020, the global demand for carbon fiber is about 106,900 tons, and the average annual demand growth rate from 2020 to 2030 is about 14%. China is the largest incremental market for carbon fiber in the world. The domestic demand for carbon fiber is about 48,900 tons, and the average annual demand growth rate from 2020 to 2030 is not less than 20%. Wind power, hydrogen storage, and photovoltaics are the fastest growing downstream applications.

The gap between the civilian carbon fiber industry and the international level is obvious: carbon fiber has obvious dual-use characteristics for both military and civilian use. Western countries have imposed strict technical blockades and product embargoes on my country's carbon fiber, especially the small yarn carbon fiber industry. After more than 20 years of hard work, the domestic high-end carbon fiber industry has basically solved the problem, but the problem of weak comprehensive competitiveness is difficult to solve. The phenomenon that the two ends of civilian carbon fiber are outside is more obvious, and the market environment is less friendly.

The development of civilian use is the starting point to enhance the comprehensive competitiveness of the high-end carbon fiber industry: First, the international environment has changed, and Western countries have strengthened the control over the export of carbon fiber and its equipment to China. Secondly, the implementation of the dual-carbon policy has opened up market demand in the fields of wind power, hydrogen storage and photovoltaics. Local enterprises have basically mastered the carbon fiber production technology in related fields, and have also achieved stable and high production of devices. Creating conditions and creating a friendly industrial environment for the localized civilian carbon fiber industry will not only help the local carbon fiber industry become bigger and stronger, but also help enhance the comprehensive competitiveness of the high-end carbon fiber industry.

Focus on the carbon fiber equipment industry chain and the civilian carbon fiber production industry: First, local companies basically have the ability to integrate large yarn carbon fiber production lines, and some core equipment has basically achieved independent production. The surge in demand will inevitably lead to rapid growth in the demand of equipment companies. Secondly, for a long time, the capital market has paid more attention to the high-end carbon fiber industry. However, the pattern of the civil carbon fiber industry is changing, and companies whose products can meet the needs of wind power, hydrogen storage and photovoltaics will benefit significantly. It is also a necessary way to reduce the cost of high-end carbon fiber.