Is there a problem of overcapacity in the wax based carbon ribbon industry?

Regarding the issue of overcapacity in the wax based carbon ribbon industry, analysis can be conducted from the following aspects:

1、 Industry Status

Market size:

Taking resin reinforced wax based heat transfer carbon ribbon as an example, according to market research institutions, the market size of China's resin reinforced wax based heat transfer carbon ribbon market is predicted to be about 500 million yuan (another version is 1.5 billion yuan) in 2023, and will reach 1.5 billion yuan (another version is 4 billion yuan) by 2030, maintaining a high compound growth rate. This growth is mainly driven by the rapid development of industries such as consumer electronics and smart wearable devices, as well as the increasing demand for personalized customized products from consumers.

Application areas:

Enhanced wax based carbon ribbons have wide applications in various industries such as electronic information, packaging printing, textile and clothing, especially in the electronic information industry. With the popularization and upgrading of consumer electronics products, the demand for high-performance and low-cost heat transfer carbon ribbons continues to increase.

2、 Judgment of overcapacity

Comparison of Production and Demand:

At present, there is no direct data indicating that there is overcapacity in the wax based carbon ribbon industry. However, if the production continues to exceed the demand and this trend persists for a long time, it can be considered that there is a risk of overcapacity.

Market competition:

The market competition in the wax based carbon ribbon industry is fierce, with a large number of competitors and a high degree of product homogenization. This competitive situation may lead some companies to adopt price reduction strategies when competing for market share, thereby affecting the profitability of the entire industry. If a company blindly expands its production scale in order to maintain market share, it may lead to overcapacity.

Technological progress and industrial upgrading:

With the continuous advancement of technology and industrial upgrading, the performance and application scope of wax based carbon ribbon are also constantly expanding. This may bring new market demand and growth points, thereby alleviating the pressure of overcapacity.

3、 Influencing factors

The growth of emerging application markets:

The demand for some emerging application markets is growing, such as medical devices, automotive components, aerospace and other fields. The rapid development of these fields may bring new market opportunities and growth points to enhance the wax based carbon ribbon industry.

National policy support:

The Chinese government actively encourages the application of environmentally friendly materials and technologies and has introduced a series of relevant policies and regulations. These policies provide a favorable policy environment for enhancing the development of the wax based carbon ribbon industry, which helps to promote the sustainable and healthy development of the industry.

Raw material supply situation:

The production and price of raw materials such as paraffin will also affect the production cost and supply capacity of the wax based carbon ribbon industry. If the supply of raw materials is tight or prices rise, it may lead to an increase in production costs and a decrease in supply capacity, thereby affecting the industry's overcapacity situation.

4、 Conclusion and Suggestions

In summary, it is currently impossible to directly determine whether there is overcapacity in the wax based carbon ribbon industry. However, companies should remain vigilant and closely monitor changes in market demand and the evolution of the competitive landscape. At the same time, we will strengthen technological innovation and industrial upgrading, improve product performance and application scope, in order to cope with potential market risks and overcapacity pressures. In addition, the government should strengthen policy guidance and supervision to promote the healthy and orderly development of the industry.