The optical fiber industry has witnessed a significant upswing in both product volume and prices this year. At one optical fiber manufacturer in Jiangsu, staff reported that production and sales of optical fiber products increased by more than 35% year-on-year in the first quarter, with overseas sales growing over 55%. Exports are primarily directed to North America and Southeast Asia, and the company currently holds sufficient orders, with production schedules extending into the first quarter of next year.
At another optical fiber producer in Jiangsu, management indicated that production and sales surged nearly fivefold in the first quarter compared to the same period last year. At the same time, product prices have risen sharply. One executive described the price increase as explosive, noting that G.657.A2 optical fiber, priced at 32 yuan per core kilometer last year, has climbed to 240 yuan this year—a jump of 650%. The sales process has also shifted, with buyers now paying in advance rather than after delivery, reflecting strong demand.
From early 2025, when prices were below 20 yuan per core kilometer, to March 2026, when the spot price of mainstream G.652.D single-mode fiber exceeded 83.4 yuan, the cumulative increase over more than a year has surpassed 400%, reaching a seven-year high.
In the A-share market, rising optical fiber prices have driven substantial gains in related sectors. According to Wind data, as of April 19, the Wind Optical Fiber Index has risen 85.1% this year, approaching last year’s full-year gain of 98.32%. Among leading stocks, Yangtze Optical Fibre And Cable Joint Stock Limited Company (601869.SH), which already surged 289% last year, has advanced 214.45% so far this year. Additionally, Tongding Interconnection and Hengtong Optic-Electric have risen approximately 152% and 125%, respectively, both doubling in value.
Unlike previous cycles driven by telecom operator investments, the current price surge is largely attributed to demand from AI and computing power. Guosheng Securities pointed out that against a backdrop of supply shortages, customers have shown little sensitivity to price, contributing to the steep upward price trend.
Kaiyuan Securities noted that AI is taking over from telecom demand, propelling the global optical fiber market into a cycle of rising volume and prices. According to CRU forecasts, global optical fiber demand is expected to climb to 880 million core kilometers by 2027. In terms of pricing, the spot price of G652.D bare optical fiber in China reached 83.4 yuan per core kilometer in March 2026, marking a cumulative increase of over 400% since May 2025. Similar products in the European market also saw a month-on-month increase of 136% and a year-on-year rise of 159% compared to January, indicating that the upward price trend has spread globally. It is projected that the supply-demand gap may widen to 15% between 2026 and 2027.
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