2008 Economic Crisis Effect on Fiberglass Industry

For the economic startet from the year 2008, and the crisis is going forward with strong power. The world's economy encounters serious frustration.
 

For Chinese Fiberglass industry, "supply exceeds demand" is a general problem. In the year 2007, chinese fiberglass industry was developing fastly, and many fiberglass manufacturers increased economical benefit. So many facotries bought new machines and expanded production, there were many new members joined in fiberglass industry.
 

Bad news started from July 1st 2007, China export tax rebate policy changed, for fiberglass products, It changed a lot, from 13% to 5%, with 8% tax rebate reduced, very bad chain reaction piled up, we needed to add 8% profit basis on our price, 80% customers could not accept the new price, fiberglass goods were not selling good as before, inventory products appeared, Many companies occurred capital turnover problems.
 

In the year 2008, economic crisis happened, the demands reduced a lot, Fiberglass industy have encouted many problems and many bad things were happened during this period:
 

Price reduced sharply;
Export sales decreased;
Machine became idle, production stopped;
Workers brain drain;
Many factoried closed and went bankruptcy.

Some price datas to show:
 

E-glass chopped strand mat: from RMB 12000/ton in 2007 to 8500/ton[appro.]
Fiberglass roving: from RMB 10000/TON to 8000/TON or even lower.

For the two specs "Fiberglass roving" and "Chopped strand mat ( CSM )", they demand exceeds supply, these production  sold very good. In 2008, we don't have these good old days. Things may not going better in 2009.
 

Totally, tax rabate changing, economic crisis and USD to RMB exchange rate, these three facts slow Chinese fiberglass industry developing. But we still believe fiberglass industry will turn to be good in the near future.