xb Machinery | August Electronic Cloth Price Hikes May Continue to Exceed Expectations; In Recovery Market, Focus on Strong Expectation to Strong Reality Stocks

English summary

In early July, 7628 electronic cloth prices rose to RMB 8.5-8.7/meter, up RMB 1.2 QoQ, a monthly increase of 16%; August prices will continue to rise, with expected monthly increases of RMB 1.5/meter or more. Thin cloths such as 2116/1080 were quoted at no less than RMB 11/meter in early July, up 20% MoM, and August increases are expected to remain above 15%. Supply shortages re-emerged in July: Guangyuan's 7628 production halted, and leading manufacturers like Honghe shifted to high-end product structures. Beyond supply, materials are a major driver: in early July, mainstream electronic yarn G75 transaction prices were quoted at RMB 16,500-17,000/ton, up RMB 2,500 from early June, a 17% monthly increase. With the supply-demand gap widening, downstream inventories are nearly depleted, and this round of price hikes is expected to persist steadily. For specialty electronic cloth, with Rubin ramping in 2H26, second-generation cloth will become the main price raiser. ...