Carbon Fiber Prices Are Rising: Here’s What Investors Need to Know About the Market in 2026

• Jilin Carbon Valley: +23%
• Hoshion Industrial: +20% (Daily Limit)
• Guangwei Composite: +15%
• Shenjian New Materials: Daily Price Ceiling
• Jilin Chemical Fiber: Daily Price Ceiling
• Zhongfu Shenying: +9%

The carbon fiber market just had a massive moment.

On Monday, December 29, 2025, the sector exploded across Chinese exchanges with some serious gains.

Let’s break down what happened:

• Jilin Carbon Valley (Jilin Tangu 吉林碳谷) surged over 23%
• Hoshion Industrial (Heshuun Keji 和顺科技) hit the 20% daily limit
• Guangwei Composite (Guangwei Fucai 光威复材) climbed nearly 15%
• Shenjian New Materials (Shenjian Guofen 神剑股份) reached its daily price ceiling
• Jilin Chemical Fiber (Jilin Huaxian 吉林化纤) reached its daily price ceiling
• Zhongfu Shenying (Zhongfu Shenying 中复神鹰) recorded gains over 9%

This wasn’t random.

There’s a specific catalyst driving all this action.

—

Global Carbon Fiber Price Hikes Are Coming in January 2026

According to People’s Finance News (Renmin Caixun 人民财讯), the carbon fiber market is bracing for a new round of price increases starting January 2026.

The biggest player kicking this off?

Japan’s Toray Industries (Dongli 东丽) — the global industry leader.

Effective January 2026, Toray announced it will raise prices for its “TORAYCA” brand carbon fiber products.

The price increases apply to:

• Carbon fiber products
• Intermediate products
• Prepregs
• Fabrics
• Laminates

The expected increase?

Between 10% and 20%.

That’s significant.

—

Chinese Manufacturers Are Following Suit

Not to be outdone, Jilin Chemical Fiber (Jilin Huaxian 吉林化纤) — one of China’s major carbon fiber producers — also announced price increases.

The company issued a notice citing high cost-performance, stable performance, and the ability to serve as a high-quality substitute for Japanese equivalents.

Starting January 1, 2026, here’s what they’re doing:

• 12TK carbon fiber: ¥5,000 RMB ($694 USD) per ton increase
• 3K carbon fiber: ¥10,000 RMB ($1,388 USD) per ton increase

For context, when domestic producers start raising prices to match international competitors, it signals growing confidence in their product quality and market positioning.

—

What Exactly Is Carbon Fiber? Why Does It Matter?

Let’s back up for a second.

What are we actually talking about here?

Carbon fiber is an inorganic fiber with a carbon content exceeding 90%.

Think of it like this: it’s basically the “black gold” of modern manufacturing.

Here’s what makes it special:

• Lightweight — but incredibly strong
• High strength — can handle serious loads
• High elastic modulus — maintains its shape under stress
• Heat resistant — handles extreme temperatures
• Corrosion resistant — lasts longer in harsh environments

Because of these properties, carbon fiber is considered an ideal structural material for high-performance and lightweight requirements in advanced equipment.

Where is it used?

• Aerospace industry
• National defense
• Military applications
• Robotics (Jiqiren 机器人)
• High-performance industrial equipment

—

The Global Carbon Fiber Market: A Three-Way Battle

Here’s the bigger picture: the global carbon fiber market is shaped by intense competition between three major regions: China, the United States, and Japan.

In 2025, China’s carbon fiber production capacity accounts for 47.7% of the global total.

That’s nearly half the world’s supply.

But here’s the catch: there’s still room for improvement in the high-end market.

The localization rate of high-performance carbon fiber remains relatively low, meaning some sectors still rely on imports for top-tier applications.

This is a critical detail for investors tracking the space.

It means there’s massive upside potential for Chinese manufacturers who can successfully produce world-class, high-performance carbon fiber.

—

Five Major Manufacturers Control 65-70% of China’s Carbon Fiber Market

Institutional research reports reveal that just five manufacturers control 65-70% of the Chinese carbon fiber market by sales volume.

Here’s the breakdown:

International Players (The Incumbents)

• Toray (Dongli 东丽) — Japan
• Mitsubishi Chemical (Sanling Huaxue 三菱化学) — Japan
• Teijin (Dijin 帝人) — Japan
• Hexcel (Hexi 赫氏) — USA

The Chinese Challenger

• Zhongfu Shenying (Zhongfu Shenying 中复神鹰) — China

Notice something?

Only one Chinese company made the top five list.

And that’s actually a major development.

—

The High-End Carbon Fiber Opportunity for Chinese Manufacturers

Here’s where it gets interesting for investors: in the high-end domestic market for T800 and T1000 grade carbon fiber, Zhongfu Shenying (Zhongfu Shenying 中复神鹰) has secured a market share that rivals its international competitors.

This is significant because T800 and T1000 grades are the premium tier of carbon fiber — the stuff used in aerospace and advanced defense applications.

For years, these segments were dominated by Japanese and American manufacturers.

The fact that a Chinese company is now competitive at this level signals a fundamental shift in the global supply chain.

—

Demand for High-End Carbon Fiber Is Exploding

A recent report by Shanxi Securities (Shanxi Zhengquan 山西证券) highlights the underlying macro tailwind driving all of this.

Demand for high-end carbon fiber is rising rapidly.

Let’s look at the numbers:

Data from Baichuan Yingfu (Baichuan Yingfu 百川盈孚) suggests that for the full year of 2025, China’s actual consumption of carbon fiber is expected to reach 96,446 tons.

That’s a year-on-year increase of 71.89%.

Let that sink in.

Nearly 72% growth year-over-year in consumption.

What’s driving this surge?

• Wind turbine blades — renewable energy expansion
• Aerospace sector — aircraft manufacturing and space applications
• Application upgrades — industries transitioning to higher-performance materials

This isn’t speculative growth either.

These are real, tangible end-market drivers with structural tailwinds.

—

The Pricing Power Is Back

Here’s what matters for the bottom line: companies capable of supplying high-performance products are seeing a recovery in their pricing power.

Translation?

If you can make the good stuff, you can charge more for it.

For years, carbon fiber manufacturers struggled with commoditization and price pressure.

But with demand outpacing supply at the high end, that’s changing.

—

What’s Next for Carbon Fiber in 2026?

The outlook for the high-end carbon fiber industry is increasingly bullish.

According to institutional research, the sector is expected to enter a new phase of high-quality growth.

Here’s why:

• Optimized supply-demand dynamics — demand is outpacing supply at premium tiers
• Technical breakthroughs — Chinese manufacturers are closing the quality gap
• Recovering pricing power — manufacturers can command higher prices for quality products
• Growing end-market demand — renewable energy and aerospace are scaling

For investors, this creates an interesting thesis: carbon fiber prices are poised to rise throughout 2026, and companies with access to high-performance capacity will benefit disproportionately.

The market is signaling this already.

Those December 29th stock moves weren’t noise.

They were market participants positioning for what’s coming next in the carbon fiber market.

—

References

• Carbon Fiber Prices Imminent! One Chart to Understand the Market Share of Top Five Manufacturers – East Money
• Toray Announces Price Revision for Carbon Fiber Products – Toray Industries
• Company News and Product Updates – Jilin Chemical Fiber Group
• High-Performance Carbon Fiber Market Trends – Zhongfu Shenying