China-made optical fibre sees global surge in orders; prices jump as much as 650%

Surge in demand and price shocks

China’s optical‑fibre sector is experiencing an abrupt boom, driven by rising overseas orders and tight supply. It has been reported that multiple domestic producers saw first‑quarter sales and shipments climb sharply, with some product prices spiking by as much as 650% and order books already scheduled through the first quarter of 2027. Optical fibre — the backbone of modern data communications, sensing, medical and industrial control systems — is suddenly a hot export item for Chinese manufacturers.

Market data reflect a broad, multi‑category rise rather than a niche ripple. CRU data show the commonly used single‑mode G.652.D fibre average price moving from under ¥20 per core‑km at the end of 2025 to roughly ¥85–120 per core‑km in April 2026 — a rise of more than 400% in months. Guangdong Telecom (广东电信) has also raised its procurement ceiling for a 24‑core GYTA G.652D cable from ¥1,245 to ¥2,500 per "皮长公里" between January and March, an increase of over 100%.

Capacity push, customers and geopolitics

Producers in Jiangsu reportedly posted year‑on‑year shipment growth ranging from 35% to nearly fivefold in Q1, with overseas sales expansion exceeding 55% in some cases and export orders mainly destined for North America and Southeast Asia. Major players are racing to expand capacity: Hengtong (亨通光电) has completed Phase I plant construction for an AI‑grade fibre materials and manufacturing centre and moved to equipment installation, while Far East (远东股份) plans 2026 expansions aimed at boosting preform and draw capacity to 800 tonnes/year and 26 million core‑km/year respectively.

Why now? Partly because global demand for high‑capacity fibre links — for 5G backhaul, data centre interconnects and regional network buildouts — remains strong. It has been reported that this surge persists despite broader geopolitical frictions and export controls on advanced semiconductors and telecom gear; optical fibre itself has not been the primary target of sanctions, allowing Chinese makers to capture market share abroad. But could trade policy shifts or accelerated Western supplier investment redraw the map? Capacity ramps planned for 2026–27 will be a key test for whether prices stay elevated or moderate as supply catches up.