Introduction: In the past few years, the raw material costs of optical fiber manufacturers have been increasing. We expect this trend to continue. Optical fiber manufacturers seem reluctant to lower prices, so they are forced to adopt other methods to cut overall costs.
Historically, optical fiber market prices have a close correlation with capacity utilization. The period of significant decline in fiber prices was mainly due to excess capacity. Since 2006, the optical fiber industry has effectively used its production capacity, so we have observed that the market price has basically stabilized. Relatively speaking, during the period of sharp decline in prices ten years ago, capacity utilization was also significantly lower than the current level. The market price pressure in 2012 is expected to be lower because we believe that due to strong market demand in 2012, global capacity utilization rate will once again return to a high level.
For the cable market, the major costs of fiber optic cable production include raw materials, fuels, transportation and packaging, and each cost is rising. At the same time, fiber supply was limited in 2011 (largely due to Japan's unfortunate natural disasters), resulting in a relatively stable price environment worldwide. At the same time, operators are increasing fiber cable specifications to ensure network reliability. The predictable result is that telecom operators will face pressure from increasing cable prices because fiber manufacturers must maintain a certain margin of profit while ensuring that the products delivered meet the more stringent cable specifications of telecom operators.
The Chinese market continues to grow in 2012 In 2012, China’s demand for fiber optic cable is expected to remain stable or increase. The main demand comes from the deployment of FTTx, 2G/3G construction, and the beginning of 4G/LTE network deployment.
The impact of optical fiber preform production capacity China's domestic optical fiber preform manufacturing capacity is expected to surpass China's market demand in the coming years (assuming fiber optic market demand does not increase at the 2012 level). However, we expect that in 2012 and the next few years, China will continue to import a considerable number of optical fiber preforms. The price of imported optical fiber preforms has continued to rise in the past five years. Due to the tight supply and demand situation in the global market, it is currently at a very high price level.
Historically, optical fiber market prices have a close correlation with capacity utilization. The period of significant decline in fiber prices was mainly due to excess capacity. Since 2006, the optical fiber industry has effectively used its production capacity, so we have observed that the market price has basically stabilized. Relatively speaking, during the period of sharp decline in prices ten years ago, capacity utilization was also significantly lower than the current level. The market price pressure in 2012 is expected to be lower because we believe that due to strong market demand in 2012, global capacity utilization rate will once again return to a high level.
For the cable market, the major costs of fiber optic cable production include raw materials, fuels, transportation and packaging, and each cost is rising. At the same time, fiber supply was limited in 2011 (largely due to Japan's unfortunate natural disasters), resulting in a relatively stable price environment worldwide. At the same time, operators are increasing fiber cable specifications to ensure network reliability. The predictable result is that telecom operators will face pressure from increasing cable prices because fiber manufacturers must maintain a certain margin of profit while ensuring that the products delivered meet the more stringent cable specifications of telecom operators.
The Chinese market continues to grow in 2012 In 2012, China’s demand for fiber optic cable is expected to remain stable or increase. The main demand comes from the deployment of FTTx, 2G/3G construction, and the beginning of 4G/LTE network deployment.
The impact of optical fiber preform production capacity China's domestic optical fiber preform manufacturing capacity is expected to surpass China's market demand in the coming years (assuming fiber optic market demand does not increase at the 2012 level). However, we expect that in 2012 and the next few years, China will continue to import a considerable number of optical fiber preforms. The price of imported optical fiber preforms has continued to rise in the past five years. Due to the tight supply and demand situation in the global market, it is currently at a very high price level.
Fiber Optic Splitter,Fiber Splitter,Fiber Cable Splitter,Fiber Optic Ribbon Splitter
Huizhou Fibercan Industrial Co.Ltd , https://www.fibercan-network.com