Recently, as a result of wide range of factors, including geopolitical ones, we can observe plummeting prices of raw materials, fuel, transport, and consequently final products. Needless to say, fiber optic sector has also been affected by this erratic situation.
Interestingly, even Financial Times published an article presenting the current situation on the fiber optic market. It clearly states that the noticeable growth of prices in mainly affected by the higher prices of semi-finished products, plastics, and most of all optical fibers. The shortage and increase of key components (e.g. helium and silicon tetrachloride) triggered prices for fiber rising up to 70% from March 2021.
Another reason for the higher prices is caused by the cable demand that increased by 8.1 % in the first half of the year compared with the same time last year. Although the pandemic prompted some of the biggest telecoms groups to reduce their capital expenditure, there has been a soaring demand for internet and data services. This has led to significant increases in lead times for orders, stretching out from 20 weeks to even 12 months!
Consequently, it is so important to plan the capex and all necessary purchases in advance.
At the same time, FIBRAIN is actively working on reducing the pressure of increasing costs, and thanks to a long-term strategy as well as investments in our production, including optical fiber, we are a stable partner providing the highest quality products and guaranteeing the continuity of supply while maintaing the market level of prices.
We kindly encourage you to read a full article in FT attached below.