Optical fiber bidding prices surge more than 100% in four months — what’s driving the spike?

Price spikes seen in provincial tenders

Optical-fiber bidding prices in China have shot up sharply since late 2025, with some tender lines more than doubling in just four months. Heilongjiang Telecom (黑龙江电信) reportedly pushed the price for G.652.D24 single-core kilometer cable to 155.7 yuan (tax included: 130 yuan), a rise of about 178% from the November 2025 trough and roughly 239% above a recent Tianjin tender. Similar moves have been reported across the country: Guangdong Telecom’s GYTA‑24 cable prices reportedly jumped from 1,245 yuan per皮长·km in January to about 2,500 yuan in March, while a Chongqing tender is said to have been repriced three times — from 218 yuan to 350 yuan per皮长·km (a roughly 60% increase) before award.

Demand shock: AI centres, exports and new infrastructure

Why the sudden surge? The market points to a demand shock. It has been reported that generative AI and hyperscale AI data centers are changing the math: internal interconnect needs for GPU clusters can be five to ten times greater than for traditional data centers, turning fiber from a commoditized consumable into core “vasculature” for AI compute networks. At the same time export orders have accelerated — Nanjing customs data show Wujiang exported 860 million yuan of cable products in the first two months of 2026, up 69.3% year‑on‑year — and it has been reported that leading manufacturers’ export volumes rose about 51% year‑on‑year in the January–February period. Markets in North America, Latin America, the Middle East and Africa are all cited as surging buyers.

Industry response and market implications

Suppliers and industrial groups are reacting. Zhongli Group (中利集团), which combines special‑purpose cable, photovoltaics and energy storage, has been a hot stock in the fiber theme as investors price in both domestic and export demand. It has been reported that other players are re‑routing capacity and prioritizing high‑margin orders. Some non‑traditional suppliers are even pivoting into adjacent cooling and power domains — for example Jinfu Technology (金富科技) has moved into liquid‑cooling module components via acquisitions, aiming to capture part of the AI‑datacenter ecosystem demand.

Geopolitics, supply chains and cost passthrough

This boom comes against a backdrop of broader trade tensions and technology restrictions between China and Western markets. While fiber cables themselves have been less targeted by sanctions than advanced chips, supply‑chain frictions and global logistics pressure can amplify price moves. For telecom operators and state infrastructure projects the surge poses planning headaches: procurement costs are rising fast, and projects budgeted on late‑2025 prices may need renegotiation. Reportedly, buyers from Brazil to the Gulf are now pressing Chinese exporters for faster delivery — a sign that the spike could persist unless capacity expands or demand cools.