Trade between China and the U.S. has not just saddled materials during the off season and made pricing even more dull. However, against all odds, the pricing of some components has continued to soar. For example, Fulltech mainly produces glass fiber products and will continue to benefit from the trend of rising prices. 

 

       As observed by the trade, industrial glass fiber products are mainly used in military projects, as well as the aeronautical industry. Previously, the supply had already been rather tight; with the development of the China-US trade war, southern China has sped up its procurement in that locality, so that Fulltech’s one-stop operation factory of glass fiber clothing has resolved to expand its productivity in southern China. At the same time, the sales of industrial products per unit price should be rising during the season. 

 

       Therefore, Fulltech has become a beneficiary factory of the China-U.S. trade war since only it has the industrial capacity of productivity in southern China. Furthermore, it has relatively better quality and production advantage over its competitor, Zhuhai Fuhua Composites, in this area. Therefore, Fulltech has further scheduled to increase a new lot of 180 knitting machines at Dongguan and is aiming for 360 production scale machine units. In the first quarter of next year, the productivity is scheduled to be fully loaded, and the contribution of revenue per month should reach 150 million, which is a conservative estimation by the market.

 

       Furthermore, although the demand for notebooks, smart phones, and electrical appliances at the terminal-end market will be rather average in the second quarter, in addition to the interference of the trade war between China and the U.S., the situation for the secondary industry of passive components, which used to be in short supply, remains tight in provisions without any change, even if the demand is weak. Such manufacturers are very much under a stringent schedule after a critical lack of products. (Source of information: Economic News)