China's CCL leader issues another price hike notice; fiberglass cloth sector celebrates

China's dominant copper clad laminate (CCL) manufacturer, JianTeng, has once again signaled a price increase for its products, following a similar adjustment just last month. The company's latest notice to customers points to a challenging supply chain environment, characterized by increasingly scarce raw materials and escalating costs.

In its notification, JianTeng highlighted that the prices of core components such as glass fiber cloth and copper foil have seen significant upward movement. Consequently, the company will be adjusting prices for specific materials, including a 10% increase for FR-4 and PP (7628 and above thickness), and a substantial 20% increase for thinner PP (below 7628). The adjustments are particularly concentrated on electronic glass fiber cloth.

The announcement has had an immediate positive impact on the stock market, especially for companies within the fiberglass cloth sector. Fuqiao, a prominent fiberglass cloth manufacturer, saw its stock price surge by over 6% in intraday trading following the news. The company's stock experienced significant volatility, with a trading range of 12.02% and trading volume surpassing the previous day's total by mid-morning.

Fuqiao has been actively expanding its presence in the high-end fiberglass cloth market. The company aims to increase its production of advanced process products to 70% of its capacity this year and is scaling up production of Low DK1 and Low DK2 products. These initiatives are expected to contribute to revenue and profit growth in the coming quarters. Furthermore, Fuqiao is constructing a new plant in Thailand, which will focus on high-end fiberglass cloth for applications in AI servers, low-orbit satellites, and IC substrates, with production slated to begin in the third quarter of 2027.