Himfr Analyzes China's 2010 Optical Fiber and Cable Industry Situation

Jun 28, 2010, 10:00 ET from Himfr.com

BEIJING, June 28 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzes the 2010 optical fiber and cable industry situation.

Supply in 2010's general optical fiber and cable industry is exceeding demand. Since the second half of 2008, the market demand has been good; however, there was a shortage in supply of optical fiber and cable in 2009. It is expected that in 2010, the optical fiber demand will be around 80 million to 90 million core km, while the effective supply capacity will be about 90 - 100 million core km. Annual production capacity therefore registers a surplus of about 10 million core km. Capacity utilization is about 85% to 90%, which is at a high level. Moreover, from a global standpoint, with the warming of the global telecommunications industry, the demand for optical fiber and cable should continue grow.

Optical fiber prices in the second half of 2010 will decline. From research experience, several large fiber plants are expected to decline their prices in the second half of 2010, when tender prices may decline from 86 yuan to around 75 or 80 yuan. The decline range will be 7% - 13%. Overall, the optical fiber and cable market is highly concentrated, facilitating easy collaboration between firms, which eventually impacts on price. In this context, it is expected that the decline in price will be within 10% or less.

The optical fiber and cable industry should keep booming, and there are two main supporting factors: first, domestic optical communication industry development continues to soar due to advancements in 3G, FTTx, and the integration of telecommunications networks, cable tv networks and the internet. This should continue for 5-10 years; second, optical fibers are expected to achieve several breakthroughs next year, building industry growth in exporting sectors.

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