Global Fiber Optic Price Surge: G652.D Skyrockets Over 400%
Release time：2026-04-13 Views：0
On April 9, the fiber optic sector in China’s A-share market staged a strong rally amid a generally weak market, becoming the market’s biggest highlight.
The Wind Fiber Optic Index hit an all-time intraday high of 3549.98 points and closed at 3549.66 points, up 6% on the day. Year-to-date, the index has surged **97.48%**, nearly doubling.
Individual stock performance was even more remarkable:
- **Yangtze Optical Fibre and Cable (601869.SH)** hit a record high since its IPO, closing at RMB 398.31 per share, with a year-to-date increase of 242.31% and a market value exceeding RMB 250 billion.
- **Huiyuan Communication (000586.SZ)** locked in five consecutive daily limit-ups, closing at RMB 25.12 per share, up 61.13% over five trading days.
- **Tefa Information (000070.SZ)** surged to its daily limit in the afternoon, closing at RMB 20.88 per share, also reaching a historic high.
The sharp rise in stock prices was strongly supported by the continuous surge in fiber optic product prices.
According to CRU, a leading industry research institution, the spot price of domestic G652.D bare fiber reached **RMB 83.40 per fiber-kilometer** in March 2026, surging 165% month-on-month from January and **418% year-on-year**.
Since May 2025, the cumulative increase of this fiber type has exceeded 400%, breaking the previous cycle peak of RMB 78.80 per fiber-kilometer.
This price surge is not limited to the Chinese market but is rapidly spreading to Europe and the Americas, forming a global upward trend.
CRU monitoring shows that the price of G652.D bare fiber in Europe rose to **€7.94 per fiber-kilometer** in March 2026, up 136% month-on-month and 159% year-on-year, marking a new upward cycle in the global fiber market.
Unlike previous cyclical fluctuations, this round of sharp price increases is driven by both explosive demand and rigid supply constraints, with stronger sustainability.
On the demand side, **AI computing power construction has become the core growth engine**.
The large-scale deployment of artificial intelligence has sharply boosted data center demand for high-capacity, low-latency, and low-loss fiber optic cables, creating significant structural market opportunities.
CRU data shows that global demand for fiber optic cables increased by 4.1% year-on-year in 2025, while demand from data centers surged **75.9% year-on-year**, becoming the main driver of industry growth.
Institutions project that global fiber demand will rise to **880 million fiber-kilometers** by 2027.
On the supply side, the persistent shortage of optical fiber preform, the core raw material, has been a key driver of price increases.
A research report by Huatai Securities pointed out that since January 2026, global preform production has been running at nearly full capacity.
The four major Chinese fiber enterprises are operating at full load, and overseas manufacturers are also maintaining high capacity utilization.
Due to the long cycle of preform capacity expansion, the tight supply-demand situation is difficult to alleviate in the short term, further supporting upward price movements.
Several communications industry insiders noted that fiber optic cable prices started rising in the second half of 2025, with an even larger increase in 2026.
Many suppliers are preparing to renegotiate product prices.
Rising prices have quickly translated into improved corporate profits.
Industry leader Yangtze Optical Fibre and Cable was the first to benefit.
In 2025, its optical transmission product business achieved revenue of RMB 8.346 billion, up 6.09% year-on-year, with a gross profit margin of 35.90%, an increase of 4.22 percentage points.
The gross profit margin in the fourth quarter hit a record high since the company’s listing, showing a significant improvement in profitability.
Tefa Information achieved simultaneous growth in revenue and profit in its cable business in 2025.
Through capacity expansion and production line upgrades, the company has formed a scaled integrated fiber-optic cable industrial layout, continuously expanding its market share in power transmission networks and developing new business growth points.
Huiyuan Communication, which has seen consecutive limit-ups, expects a reduced loss in 2025:
- Net profit attributable to parent company: RMB 1.5–3 million, a year-on-year loss reduction of 67.89%–83.94%
- Net profit excluding non-recurring gains and losses: RMB 3.5–5 million, a year-on-year loss reduction of 55.55%–68.89%
The company stated that increased revenue from fiber optic cables and online monitoring services was one of the main reasons for the reduced loss.
Behind the strong stock performance is intense competition between institutional investors and speculative capital.
Huiyuan Communication appeared on the Dragon and Tiger List on April 3 and April 9, with a cumulative net purchase of over RMB 40 million, involving multiple well-known institutional and speculative trading seats.
Notably, Huiyuan Communication is promoting a private placement to raise funds.
According to the draft prospectus disclosed on March 27, the company plans to raise no more than RMB 610 million to supplement working capital.
The only subscriber is Hefei Dingyun Technology Industry Development Partnership (L.P.), controlled by the company’s chairman.
After the issuance, Dingyun Industry will become the controlling shareholder, and the chairman will become the actual controller.
This capital move adds strategic imagination to the company’s future development amid the industry boom.
However, given the large short-term stock price increase and accumulated profit-taking, volatility risks may intensify.
In addition, since the company is still expected to record a loss in 2025, whether its stock price can be supported by future performance remains to be seen.
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