Over the past few years, China has far outpaced its competitors in carbon fiber production, accounting for almost half of global capacity (as shown in the chart below).

The rapid development of carbon fiber materials in China in terms of quality upgrades and localization, China's aerospace market has been undergoing a rapid recovery since 2023, and the pressure vessel market has shown relative stability. This contrasts with markets such as carbon/carbon composites and wind turbine blades.

The following is the import data of domestic fiber in the past two years: domestic Carbon Fiber 2023 maintains its progress, with its market share climbing from 31.7% in 2019, 38% in 2020, 46.9% in 2021, and 61% in 2022 to 76.7% in 2023, which demonstrates the great progress of domestically produced carbon fiber. China is the world's largest market for carbon fiber, but also a battleground for carbon fiber manufacturers. There is no specific pattern to follow in the supply of various countries to the Chinese market in recent years. We just try to explain it somewhat: in 2023, compared to 2022, in terms of small tow, Japan, Taiwan (both large and small tow), South Korea and the United States, there is a 40-50% reduction in exports to the Chinese mainland: Japan's decline rate is the smallest 37.87%, and South Korea's decline rate is the highest 50.14%, which is a reaction to: in the context of a strong trend of domestic substitution, the high quality of Japanese Local fiber still has a lot of loyal users, self-protection ability is stronger than other manufacturers. In 2023, compared with 2022, in terms of large tows, Mexico, Germany and Hungary's exports to mainland China will drop by 51-74%, with Germany's decline rate being 51.85%, Mexico's 64.49%, and Hungary's 73.59%. Under the fierce impact of domestic large tow fibers, such imports will soon return to zero.

Prices for most carbon fiber producers (excluding Japan) fall between 2022 and 2023, with prices for Chinese carbon fiber producers falling from an average of $33/kg in 2022 to $18/kg in 2023

 Our market is characterized by comprehensive and low-cost manufacturing capabilities: it covers almost all traditional application markets, and has also formed basic R&D and manufacturing capabilities. For the application markets where we have mastered the technology, we have become the strongest in the industry through our super low-cost manufacturing capabilities, such as our sports equipment, wind power pultruded panels, carbon-carbon composite materials, and drone application industries, etc.

 In addition, our high longevity manufacturing capabilities have been recognized in high-end applications such as commercial aerospace. Over the years, SPACE X has unraveled the mysteries and rewritten the history of sacred aerospace technology with disruptive innovations such as recycling, huge payloads, high efficiency and low cost. Chinese counterparts are also catching up: the large composite rocket fairing designed by Beijing Tianbing Science & Technology Company and developed and produced by Tianjin Aisda Aerospace Company recently rolled off the production line, with a diameter of 4,200mm and a length of about 13m, using all-carbon fiber composite materials for high-precision molding, which is the largest composite rocket fairing for domestic commercial aerospace, and also China's largest all-carbon fiber composite aerospace structural component at present. It is also the largest all-carbon fiber composite aerospace structural component in China at present. (The market size of drones is shown in the figure below)

Another example is in the field of drones, under the general trend of China's low-altitude economy industry development, many funds are invested in industrial-grade drones, and manufacturers are accelerating research and development to improve the performance of industrial-grade drones, aiming at solving the problem of application scenarios under the demand of the market, and in the near future, China's industrial-grade drones will also make a great contribution to the world. (The following chart shows the market size of the drone)

The purpose of this paper is to introduce China's carbon fiber industry and development to the international community, to provide international customers with our high quality composite solutions at optimal cost and cost-effective services, including composite design, material selection, composite process, manufacturing capacity and process control and testing, and other services throughout the chain, to become the world's composite warehouse and international factories to show the strength of China's composite materials! strength of China Composites!

Remark: Some of the data in the above article refer to CW composite.