Jilin Chemical Fibre Announces Price Increase for Carbon Fibre Products
On May 13, 2025, Jilin Chemical Fibre Co., Ltd., a prominent player in the materials sector specializing in chemical fibers and pulp, officially notified its clients of a significant price adjustment. The company has increased the price of its wet-process 3K carbon fiber products by CNY 10,000 per ton. This decision has notably impacted the carbon fiber concept stocks, with Jilin Carbon Valley surging by 21.64%, Jilin Chemical Fibre hitting the daily price limit, and other related stocks like Qi Xincai, Mengtai Gaoxin, and Zhongfu Shenying also experiencing substantial gains.
The price hike is attributed to increased demand driven by the low-altitude economy, particularly in the drone sector, which has led to a surge in exports. The company’s wet-process 3K carbon fiber is in high demand due to its excellent machinability, resulting in a supply-demand imbalance.
This is not the first price increase for Jilin Chemical Fibre this year. Earlier, on March 18, the company had announced a price rise for other carbon fiber products, including a CNY 5,000 per ton increase for 3K/6K products and a CNY 3,000 per ton increase for 12K/25K/35K/50K carbon yarn products.
Wet-process 3K carbon fiber, a niche product, is primarily used in high-performance applications such as the low-altitude economy, drones, high-end sports and leisure, and certain luxury automobiles. Before the price adjustment, the product’s price ranged from CNY 150,000 to CNY 400,000 per ton, with the current increase representing approximately a 4% rise.
Industry reactions to Jilin Chemical Fibre’s price increase have been cautious. Zhongfu Shenying, another major player in the carbon fiber market, has adopted a wait-and-see approach, indicating no immediate plans to follow suit. The company’s 2024 annual report highlighted that carbon fiber products accounted for 99.10% of its total revenue, amounting to CNY 15.43 billion.
The broader carbon fiber market has seen increased production capacity, leading to a supply glut and suppressed prices in recent years. However, the demand has not fully materialized. According to a report by Saiao Carbon Fiber Technology, China’s carbon fiber production capacity reached 150,130 tons in 2024, marking an 8.5% year-over-year increase.
As the market adjusts to these changes, investors and industry stakeholders are closely monitoring the potential ripple effects of Jilin Chemical Fibre’s pricing strategy on the broader carbon fiber sector.