Electronic cloth expert call 0726 - Fundamental tightness exceeds expectations, price elasticity accelerates release

English summary

# Price increase rhythm: Expected to rise every month in H2. In August, the price increase for ordinary cloth is expected to be ≥ RMB 1.2/meter, or even RMB 1.5+, a clear acceleration. # T-cloth: Currently the tightest, with the highest price already at RMB 250-260/meter; leading manufacturers' gross margin 80%+ and net margin 60%+, with further increases expected. # Loom bottleneck: Domestic looms currently cannot produce qualified 7628 fabric, and imported looms from Toyota and others have order deliveries scheduled into 2030. # AI demand explosion: T-cloth demand is expected to more than double by 2027. Downstream major customers are locking in materials, paying deposits to urge capacity expansion, with locked volume but not locked prices. This level of prosperity has never been seen in previous cycles. # Second-generation Low-Dk cloth: Large supply-demand gap; some non-leading manufacturers, having suffered losses in the last cycle, now prioritize profitability, resulting in strong price increase momentum. Prices range from RMB 100-200/meter by product category, with leading manufacturers' gross margin 70%+ and net margin 50%+. # Ordinary E-cloth: Thin-fabric looms have been converted to produce specialty cloth, leading to a substantial contraction in thin-cloth supply, and prices are unlikely to fall until H2 2027. …