Key Points
- Jilin Chemical Fiber (吉林化纤) has increased prices for all grades of its wet-process 3K carbon fiber by ¥10,000 RMB per ton, effective immediately.
- The price hike is driven by soaring demand from the booming low-altitude economy, increased drone production, and a surge in exports.
- The news significantly boosted carbon fiber stock prices, with Jilin Chemical Fiber (吉林化纤) shares hitting their daily limit and Jilin Carbon Valley (吉林碳谷) rising over 13%.
- Competitors Zhongfu Shenying (中复神鹰) and Guangwei Composites (光威复材) have not yet announced similar price adjustments, indicating varied responses to market conditions.
- Carbon fiber is a crucial lightweight, high-strength material for aviation and the low-altitude economy; China’s demand reached 60,300 tons in 2024.
Big news is shaking up the carbon fiber world, and if you’re into tech, investing, or advanced materials, you’ll want to lean in for this.
A leading Chinese carbon fiber company, Jilin Chemical Fiber (Jilin Huaqian 吉林化纤), just announced a significant price increase, sending ripples across the market.
This move highlights the intensely growing demand for this super-material, especially with the low-altitude economy and drone sectors taking off.
Let’s break down what’s happening and what it means for the China Carbon Fiber Market.
Jilin Chemical Fiber (Jilin Huaqian 吉林化纤) Confirms Major Price Surge
Alright, let’s get straight to the point.
A price increase notice from Jilin Chemical Fiber (Jilin Huaqian 吉林化纤), dated May 13, 2025, started making the rounds.
And yes, it’s legit.
A sales representative from Jilin Chemical Fiber (Jilin Huaqian 吉林化纤) confirmed to Nancai Express that the price increase is indeed taking place.
So, what’s the damage?
Effective immediately, the price for all grades of their wet-process 3K carbon fiber will jump by a hefty ¥10,000 RMB (approximately $1,380 USD) per ton.
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Why the sudden hike?
The company points to a perfect storm of factors:
- A booming low-altitude economy creating fresh demand.
- Heightened demand for drones, which heavily rely on carbon fiber.
- A surge in exports, indicating global appetite.
- The excellent processability of wet-process carbon fiber, making Jilin’s (Jilin Huaqian 吉林化纤) product particularly sought after.
Essentially, demand is outstripping supply for Jilin Chemical Fiber’s (Jilin Huaqian 吉林化纤) wet-process 3K carbon fiber, leading to this supply shortage and subsequent price adjustment.
Market Reacts: Carbon Fiber Stocks Take Flight
News like this doesn’t go unnoticed by the stock market, especially in a hot sector.
On May 14, the carbon fiber sector saw some unusual intraday trading activity.
Shares of Jilin Chemical Fiber (Jilin Huaqian 吉林化纤) (000420.SZ) themselves surged to their daily trading limit.
Talk about a vote of confidence.
Jilin Carbon Valley (Jilin Tangu 吉林碳谷) (836077.BJ), another player, wasn’t far behind, with its stock price climbing by over 13%.
Other companies in the ecosystem also felt the positive vibes:
- Mengtai High-Tech (Mengtai Gaoxin 蒙泰高新) (300876.SZ)
- Zhongfu Shenying Carbon Fiber (Zhongfu Shenying 中复神鹰) (688295.SH)
- Guangwei Composites (Guangwei Fucai 光威复材) (300699.SZ)
All these companies recorded gains, signaling that investors see this price hike as a potentially lucrative trend for manufacturers.
Insight: This isn’t just a blip; it’s a strong signal that the market anticipates higher revenues and profitability for carbon fiber producers due to robust demand and pricing power.
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Will Competitors Play Ball? The Suspense Builds
- Zhongfu Shenying Carbon Fiber (中复神鹰): No information received by investor relations department regarding price adjustments.
- Guangwei Composites (光威复材): No price adjustment; military-grade prices are fixed, civilian-grade follow market conditions.
With one major player making such a bold move, the big question is: will others follow?
To get a feel for this, Nancai Express reporters, posing as investors, reached out to two other significant companies: Zhongfu Shenying Carbon Fiber (Zhongfu Shenying 中复神鹰) and Guangwei Composites (Guangwei Fucai 光威复材).
What did they say?
A staff member at Zhongfu Shenying Carbon Fiber (Zhongfu Shenying 中复神鹰) stated, “The investor relations department has not yet received any information from the company regarding price adjustments.”
So, a “wait and see” from them, it seems.
Over at Guangwei Composites (Guangwei Fucai 光威复材), a representative was a bit more specific: “No (price adjustment). Prices for military-grade products are fixed, while prices for civilian-grade products generally follow market conditions.”
This is an interesting distinction.
Military-grade carbon fiber often involves long-term contracts and stable pricing, crucial for defense applications.
Civilian-grade products, however, are more exposed to the whims of supply and demand dynamics, like what we’re seeing now.
Insight: Competitors’ responses are key. If they hold back, they might snap up market share from customers looking for more stable pricing. If they also raise prices, it confirms a widespread supply crunch and pricing updraft across the carbon fiber industry.
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Carbon Fiber: Fueling the Future of Flight (Especially the Low Kind)
So, why all the fuss about carbon fiber anyway?
According to the China Commerce Industry Research Institute (Zhongshang Chanye Yanjiuyuan 中商产业研究院), carbon fiber isn’t just any material.
It’s defined as a high-strength, high-modulus fiber with a carbon content exceeding 90%.
Think strong, yet incredibly light.
It boasts the highest temperature resistance among all chemical fibers – a pretty big deal.
Production typically involves raw materials like polyacrylonitrile (PAN) and viscose fibers, which then go through high-temperature oxidation and carbonization.
The institute emphasizes that carbon fiber composites have become essential lightweight materials for aircraft, especially in the burgeoning low-altitude economy.
This is thanks to a killer combo of properties:
- Lightweight yet Strong: The holy grail for anything that flies.
- Corrosion-Resistant: Durability for the long haul.
- Heat-Resistant: Critical for performance and safety.
- Effective EMI Shielding: Protects sensitive electronics onboard.
The numbers speak for themselves: In 2024, China’s demand for carbon fiber hit 60,300 tons.
And this material is tipped to be a significant driver of future growth in the industry.
Insight: The demand for carbon fiber is intrinsically linked to innovation sectors like drones, urban air mobility (UAM), and other advanced aerospace applications. As these sectors grow, so will the hunger for high-performance materials like carbon fiber.
What This Carbon Fiber Price Spike Means for You
Whether you’re an investor, a founder, a tech enthusiast, or a marketer, this development has implications.
For Investors:
The carbon fiber sector is clearly showing strong growth signals.
Companies demonstrating pricing power in high-demand environments could be attractive.
Keep an eye on the entire supply chain, from raw material suppliers to manufacturers of end-products like drones and eVTOLs.
This price increase could be a bellwether for healthy margins in the sector, but also watch out for potential volatility if supply catches up too quickly or if alternative materials gain traction.
For Founders & Innovators (especially in Drones, Aerospace, EVs):
Rising material costs are a reality.
If carbon fiber is a key component in your product, this will impact your bill of materials (BOM) and potentially your margins.
Securing your supply chain, exploring long-term contracts, or even R&D into alternative materials or more efficient use of carbon fiber might be crucial.
The innovation in carbon fiber itself—cheaper production methods, new applications—is also a space ripe for disruption.
For Techies & Engineers:
The demand underscores the incredible properties of advanced composite materials.
There’s ongoing work globally to make carbon fiber production more efficient, cheaper, and environmentally friendly.
Understanding the nuances of different grades, like Jilin’s (Jilin Huaqian 吉林化纤) wet-process 3K, and their applications, is becoming increasingly important.
For Marketers:
Products made with carbon fiber often carry a premium image associated with high performance, cutting-edge technology, and durability.
This price trend reinforces that narrative.
Highlighting the use of such advanced materials can be a strong selling point, especially in markets like high-performance sports equipment, luxury automotive, and, of course, aerospace and drones.
Riding the Carbon Fiber Wave: What’s on the Horizon?
This price hike by Jilin Chemical Fiber (Jilin Huaqian 吉林化纤) is more than just a line item on an invoice; it’s a snapshot of a dynamic market at a pivotal moment.
The confluence of the rapidly expanding low-altitude economy, the unceasing demand for drones, and a healthy export market are putting significant pressure on carbon fiber supply chains.
As technology continues to push the boundaries of what’s possible in aviation, transportation, and beyond, materials like carbon fiber will remain at the forefront.
Watching how competitors respond and how supply chains adapt will be key to understanding the trajectory of the China Carbon Fiber Market and its global impact.
One thing’s for sure: the future is looking increasingly light, strong, and woven with carbon fiber.
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