Optical cable orders are booming worldwide, with Changfei Fiber adjusting its short-term product lines; Far East Sheng and Neng Tai Shan hit the daily limit again.

(Source: Caixin)

          In the first two months of this year, the Wujiang region exported wires and cables, including optical fibers, worth 860 million yuan, a year-on-year increase of 69.3%.            

On March 27, stocks related to optical fibers and cables were partially active, with Far East (000890.SZ) and Xineng Taishan (000720.SZ) hitting the daily limit, while Hangzhou Cable (603618.SH) and Far East Holdings (600869.SH) followed suit, and the leading company Yangtze Optical Fibre (601869.SH) adjusted after reaching a new high.

On March 26, Yangtze Optical Fibre announced an abnormal fluctuation in stock trading. The company noted that there has been significant market attention on the price fluctuations of single-mode optical fiber cable products and the increasing demand for new types of optical fiber products related to data centers. However, the current supply and demand structure in the domestic and international optical fiber and cable market has improved to some extent, and the impact of the stage price fluctuations of certain products on the company’s future performance needs to be assessed in conjunction with future market conditions and the company’s business situation. Currently, the proportion of new types of optical fiber products for internal and interconnection in data centers accounts for a small share of the total global market demand.

In terms of news, according to CCTV Finance, as the 14th Five-Year Plan kicks off, the development of artificial intelligence is accelerating rapidly, leading to a swift increase in global investment in computing power infrastructure. In Suzhou, Jiangsu, the export of optical cable manufacturing companies has seen rapid growth. Related companies are ramping up production to seize the global market. A staff member from a certain company told reporters that since the end of last year, the company’s overseas orders have significantly increased, with numerous orders coming from South America, the Middle East, Africa, and Southeast Asia, all requiring delivery within half a month. In the first two months, this company’s optical fiber exports increased by 51% year-on-year. Production is now fully booked. The company is currently expediting the expansion of its factory and increasing production lines to boost capacity in response to market demand. According to the Nanjing Customs, in the first two months of this year, the Wujiang region exported wires and cables, including optical fibers, worth 860 million yuan, a year-on-year increase of 69.3%.

Galaxy Securities pointed out that the demand for the optical fiber and cable industry has grown significantly, with prices in the industry being raised sharply: operators have seen repeated instances of tender failures and price increases. The rise in tender unit prices reflects the widespread situation of significant price increases in the optical fiber and cable market; at the same time, this tender is an emergency procurement project, which tends to favor short cycles. Combined with previous tenders that were suspended due to changes in project conditions, it may indicate that the shortage of optical fibers and cables has become quite common.

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