Core Viewpoint - The wet separator industry is experiencing a price rebound despite historically low profitability, with major companies operating at full capacity and limited expansion plans [1][2]. Group 1: Price Trends - Wet separator prices have entered an upward trend, with the top three manufacturers operating at full capacity and dry separator utilization rates around 70-80% [1]. - Prices for 7 and 9μm wet separators have significantly increased, with base film prices rising by 0.07 yuan per square meter since August, and coated film prices increasing by 0.10 yuan per square meter [1]. Group 2: Capital Expenditure and Capacity Release - The industry is facing historical low profitability, with major players like Enjie and Xingyuan reporting losses in Q2 and Q3 of 2025 [2]. - Capital expenditure in the industry has been declining since 2023, with no new lithium battery separator capacity plans announced by listed companies in 2024 [2]. - A consensus has been reached in the industry to avoid blind expansion, with separator expansion cycles taking 1.5 to 2 years, leading to limited effective supply release in the future [2]. Group 3: Industry Concentration and Product Development - The concentration of the separator industry continues to rise, with the CR4 exceeding 70% in the first half of 2025, an increase from 2024 [3]. - There is a growing demand for 5μm ultra-thin high-strength separators due to requirements from energy storage and fast charging applications, which are expected to gain market share rapidly [3]. - Leading companies are developing the next generation of coated separators, enhancing product performance and cost advantages, which may further increase industry concentration [3].