STOCKS | Fiber Optic Index Falls 3.26% as Companies Respond to Capacity Expansion

According to Jin10, the Wind fiber optic index fell 3.26% at the close on September 10, as fiber preform capacity expansion accelerated and several listed companies responded. A listed company insider said fiber preforms are the main raw material for optical fibers and optical cables, that the entire industrial chain has mainly seen price increases this year, and that fiber preform prices have risen sharply since the start of the year and have continued to rise recently, but medium-term prices remain uncertain as new capacity comes online over the next two years. Fenghuo Communication said fiber preforms are the core raw material for optical fiber and cable manufacturing, that it is optimistic about long-term demand in data center optical interconnection scenarios, and that it is actively deploying high-end capacity in multimode fiber, specialty fiber, and hollow-core fiber. It added that before the proceeds from a targeted share placement arrive, it will use self-raised funds in line with project progress to advance the project. Changfei Fiber said expansion in the fiber preform segment faces barriers in capital investment, technology accumulation, equipment access, process approvals, and talent reserves, and that demand growth from traditional telecom operators is modest while incremental demand mainly comes from cloud service providers' computing power construction. It said specific details are subject to the company's periodic reports.