Multiple demands in the fiber optic industry resonate, potentially leading to sustained price increases. The fiber optic concept continues to rise, with many stocks hitting the daily limit.

On March 24, the optical fiber concept continued to rise in the afternoon, with Changfei Fiber (601869.SH) hitting the daily limit. Previously, Tongding Interconnection (002491.SZ) also reached the daily limit, while Hengtong Optic-Electric (600487.SH), Tefa Information (000070.SZ), Huamai Technology (603042.SH), and Zhongtian Technology (600522.SH) followed suit.

In terms of news, Guotai Junan’s research report stated that recently, Heilongjiang Telecom released a tender announcement for the 2026 outdoor optical cable emergency procurement project, where the mainstream specification G.652D-24 core outdoor optical cable has a pre-tax unit price of 3737.43 yuan per unit length kilometer, corresponding to a single core kilometer price of approximately 155.7 yuan.

China Galaxy Securities pointed out that with high demand growth and a long expansion cycle, the industry competition landscape has become clearer, and they are optimistic about the sustainability of price increases for optical fibers and cables: Currently, the optical fiber and cable market is experiencing continuous price increases due to rapid developments in AI and computing networks, as well as high expansion difficulties. In terms of demand, the demand for DCI and all-optical networks from intelligent computing centers has significantly increased. According to CWW and CRU data, global demand for optical fibers and cables is expected to grow by 4.1% year-on-year in 2025, while the total demand for data center optical fibers and cables is expected to increase by 75.9% year-on-year, which will drive global optical fiber demand to reach 880 million core kilometers by 2027. On the supply side, due to the long expansion cycle of global optical preform (approximately 2 years), overall expansion has been relatively conservative under the previous price pressure, and the market is currently leaning towards specialty optical fibers. Considering both demand and supply, we believe that optical fiber and cable prices still have potential for increases.

KYG Securities believes that the “AIDC construction, DCI interconnection, and drone demand” create a triple resonance in optical fiber demand. From the supply perspective, the characteristics of long expansion cycles and high difficulty in expanding optical preforms may lead to a continued supply-demand imbalance, resulting in continuous price increases for optical fibers.