The optical fiber cable industry enters the boom cycle, Zhujiang Cable welcomes the turning point of performance

Starting from the second half of 2015, the optical fiber and cable industry has seen an inflection point. In 2015, China Mobile collected 94.52 million core kilometers of optical fiber, setting a new record of procurement history and accounting for 30% of the world's demand.

Anti-dumping has led to tight domestic demand. In 2015, the Ministry of Commerce imposes anti-dumping duties on the final anti-dumping decision on imports of optical fiber preforms from the United States and Japan. The price of imported optical rods has increased by 15%-30% due to tariffs. The shortage of domestic optical rods has further promoted the price increase of optical fiber and cable. This increase is not caused by an emergency, but is mainly due to changes in the balance between supply and demand. From the historical price range, there is still a lot of room for an increase.

The popularization of optical fiber has become a major trend. Under the broadband strategy, China Mobile and Broadcasting Corporation have successively obtained fixed-line licenses to increase investment in fixed-line broadband. According to China Telecom, China's optical fiber access penetration rate will exceed 60% in 2020, and the number of users will reach 280 million, with an average annual growth rate of about 26%.

National policy promotion. The huge power grid infrastructure of the One Belt One Road has directly promoted the increase in the demand for cables; with the full deployment of 4G network construction, the communication cable market ushered in great development; my country's defense expenditure has maintained a double-digit growth, and special cables have a long-term development basis.

New technologies bring new prospects. The NB-IoT Internet of Things is developing rapidly. The three major operators represented by China Telecom have made it clear that NB-IOT will achieve full network coverage in 2017. This new technology will recreate a new pattern in the optical communications industry.

The agency said that the growth rate of domestic fiber optic cable demand in 2016 will reach about 40%, and it will maintain a growth rate of more than 20% in 2017. The price of optical fiber will continue to rise, and it is expected that the centralized procurement in September will increase to 60-65 yuan per core kilometer. The market has insufficient awareness of the high prosperity of optical fiber and cable. According to the survey of major manufacturers and operators, the current high prosperity of optical fiber and cable exceeds expectations. The price of bulk fiber is more than 30% higher than the price of centralized procurement, and the price is still rising Impulsively, the boom is expected to continue into the 2-3 quarters of 2017.