China Merchants Securities says loom capacity is shifting to high‑end
production, keeping electronic yarn and fabric prices elevated. It forecasts
peak prices for standard 7628 electronic fabric of 7.5-8.0 yuan/m by 2026.
High‑end product supply remains tight and short‑term demand exceeds supply.
Strong demand growth, inelastic supply, leading firms expanding high‑end
capacity and low‑end conversion/upgrades support a clear cyclical upswing with
concurrent volume and price gains. Near term, high‑end capacity bottlenecks
should keep prices elevated; medium‑to‑long term, leaders’ technology and cost
advantages will sustain capacity expansion and raise the industry’s profit
baseline.
