March 4, 2026 | Optical Fiber Online (C-FIBER) — “Single-mode fiber prices are changing by the day, and the hikes are becoming irrational," a senior industry veteran told our editors. Currently, many suppliers are hesitant to accept new orders, with quotes valid only for the day of issue. Since New Year’s Day 2026, the domestic single-mode fiber market in China has been gripped by an unprecedented price surge. In just two months, quotations have achieved an "epic leap," creating a rare seller's market where daily price validity is the new norm.

After years of stagnating at record lows, single-mode fiber prices have completely "taken off." According to the latest market research from Optical Fiber Online as of March 4, quotes for various fiber models have shattered industry "ceilings":

• G.652D Single-Mode Fiber: Pre-New Year: 18 RMB/km → Current: 85–120 RMB/km (approx. 650% increase)

• A1 Single-Mode Fiber: Pre-New Year: 23 RMB/km → Current: 115–135 RMB/km (approx. 487% increase)

• A2 (G.657.A2) Single-Mode Fiber: Pre-New Year: 35 RMB/km → Current: 210–230 RMB/km (approx. 557% increase)

Currently, the single-mode market is categorized into G.652D, A1, A1 PLUS, A2, and B3 models, each serving different applications. While several domestic companies possess fiber preform (draw tower) capabilities—including YOFC, Hengtong, FiberHome, ZTT, Yongding, HTGD, Hongan, and Futong—technical distinctions remain significant. Full-spectrum preform production is primarily dominated by the "Big Three": YOFC, Hengtong, and FiberHome.

“These are just the prices as of March 4. No one knows what tomorrow will bring," lamented one industry veteran. “In over a decade in this business, I’ve never seen a spike like this. It’s a genuine dilemma whether to buy or wait."

The Demand Side: AI Mania + Defense Consumption First, the AI factor: Modern AI Intelligent Computing Centers, particularly 10,000-GPU clusters, require internal interconnectivity consuming tens of thousands of fiber-core kilometers—over ten times that of traditional data centers. CRU data shows that global data center fiber demand surged 75.9% year-on-year in 2025. However, sources suggest that AI demand alone would not have broken the market.

The critical pressure comes from Specialty A2 Fiber used in defense. Fiber-guided drones, for example, consume 10 to 40 kilometers of fiber per single flight. As these are "consumable" deployments (one-time use), this demand has pushed already tight inventories over the edge.

The Supply Side: The Preform Bottleneck The "lifeblood" of optical fiber lies in the upstream Optical Fiber Preform, which accounts for 60%–70% of the total cost. Due to years of low market prices, few companies maintained the high-tech infrastructure for preform production. Domestically, core capacity is concentrated within the "Four Kings": YOFC, FiberHome, Hengtong, and ZTT.

“Fiber factories that rely on purchasing external preforms have already halted production; the raw materials simply aren't available," an insider revealed. “Furthermore, some companies that won operator tenders last year are refusing to start production. At last year’s bid prices, every kilometer produced today results in a net loss."

The industry has officially entered a "Same-Day Validity" era. Some reports suggest quotes are now shifting every half-day. Social media is flooded with price hike notices—a phenomenon virtually unheard of in the history of optical communications.

Telecom operators are also feeling the burn. In early February, Guangdong Telecom abruptly suspended two major fiber optic cable procurement projects. The industry consensus is clear: with prices at these levels, previous tender prices are now "jokes," and no manufacturer dares to bid.

Expanding preform production capacity involves long lead times, meaning new supply cannot hit the market overnight. Until then, a "tight-equilibrium" is the likely reality. Between the AI arms race and specialty defense needs, this glass strand—thinner than a human hair—is becoming the most sought-after strategic material of the digital economy.

However, some skeptics remain: “If you have the money, you can still find fiber; it’s not a total blackout. Is this a genuine shortage or a calculated market play? The jury is still out."

Is this fiber famine just beginning, or is it nearing its peak? The market is waiting for an answer.