Major glass fiber price hikes loom


A five-year slump in glass fiber pricing may soon be coming to an end. The industry built up global capacity just in advance of the Great Recession that began in 2008. As a result, prices dropped and have failed to match gains made in thermoset resins or competing materials such as steel and aluminum.

"We've seen over the last five years since the financial crisis, a tremendous reversal in the rate at which the players in this industry have been adding capacity," said Owens Corning CEO Michael H. Thaman in a recent conference call with financial analysts. He said supply will probably lag demand growth for at least two more years.

As result, capacity utilization will rise to the point where there may be supply-demand tension if growth continues as expected.
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