China’s Electronic Yarn and Electronic Cloth Prices Rise on AI-Driven PCB Demand

Demand for air-jet looms used to produce high-end electronic cloth has surged, and Toyota Industries holds more than 90% of the global market; new orders placed now are not expected to be delivered until 2029, an upstream industry participant said. Electronic cloth, woven from ultra-fine glass fiber, provides mechanical strength and rigidity for printed circuit boards (PCBs), according to a Soochow Securities Research Institute report. With downstream AI demand rising, prices for mainstream electronic yarn product G75 and 7628 electronic cloth in China have moved higher again. Data from Sublime China Information showed electronic yarn prices rose by an average of 2,500 yuan per tonne at the start of the month, while electronic cloth prices increased by about 1.2 yuan per meter; fine and ultra-fine yarn prices also climbed. The supply-demand mismatch is unlikely to ease in the near term and tight availability of electronic cloth is expected to persist, according to Jiemian News.