CITIC Securities: China's Optical Fiber Export Ratio Significantly Increased, Industry in a High Boom Cycle

People’s Financial News, March 30 - According to a research report by CITIC Securities, in February of this year, China exported 3,779.9 tons of optical fiber, amounting to 790 million yuan, a year-on-year increase of 63.6% and 126.8%. When converted to kilometers, China exported approximately 25.2 million core kilometers of optical fiber in February, accounting for about 65% of the monthly effective production of optical fiber in China. If we include the optical fiber in the optical cable exports, the proportion of optical fiber exports would be even higher. Based on the export amount, the effect of the price increase in optical fiber on performance is expected to not be very obvious in the first quarter. In summary, overseas markets are scrambling to purchase optical fiber produced in China, and Chinese optical fiber suppliers are in a “not worried about sales” state. Therefore, the market does not need to be overly concerned about the optical fiber bulk procurement by domestic telecommunications operators. Overall, the demand for optical fiber is being strongly driven by overseas telecommunications networks, AI, drones, and other factors, pushing prices to continue rising, and the industry is in a high prosperity cycle, with a continued recommendation for the optical fiber sector.