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How Long Will Fiber Prices Keep Rising? A Preform-Supply Explainer

Nov 02, 2026

Oyi International., Ltd. is a fibre optic cable company based in Shenzhen, China, founded in 2006. We supply fibre optic products and solutions to businesses worldwide, export to 143 countries, and work with 268 long-term partners. Our R&D team of more than 20 specialists focuses on developing new technologies and improving product quality.

Because our customers are network operators, distributors and contractors, we hear the same question over and over lately: how long will fiber prices keep going up? Here is what is behind the surge, why the optical fiber preform has become the sticking point, and what buyers can actually do about it.

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Why prices moved so fast

For years, fiber pricing was fairly stable. That is no longer true. CRU has noted that the recent price moves mark a clear break from the calm of previous years.

The numbers show how sharp the shift has been. Industry reporting puts the spot price of optical fiber at roughly 20 yuan per core-kilometer in 2025, climbing to about 100 yuan by July 2026. The same report notes that G.657.A2 fiber used in AI data centers jumped from 32 yuan to 240 yuan. According to reports, meanwhile, expects the average price of bend-insensitive fiber inside data centers to run more than five times its 2025 level in 2026.

Three things are driving this. First, AI data center construction — hyperscale facilities simply use far more fiber per site than traditional networks. Second, new demand segments have appeared: fiber-optic drones, data center interconnects, and high-capacity backbone networks. Third, the supply chain has tightened, and the pinch point is the preform.

What a preform is and why it matters

A preform is a large cylinder of ultra-pure quartz glass. The core and cladding structure is already formed inside it, and the whole cylinder is then drawn down into hair-thin fiber. One preform can yield thousands of kilometers of fiber. If preform supply is limited, fiber output is limited too — no matter how many drawing towers or cabling lines you have.

That is why CRU describes the glass preform as a critical bottleneck in the value chain. On paper, preform capacity looks sufficient, especially in China. But effective utilization is high once mothballed capacity is set aside, and restarting idle capacity takes time, technical preparation and real capital commitment.

How tight the market really is

According to reports latest research lays it out plainly:

1. Global fiber demand is estimated at 577 million fiber-kilometers in 2026.

2. A supply shortfall of about 180 million fiber-kilometers is expected this year.

3. Capacity utilization has climbed to 92%.

4. Inventory has fallen from four months in 2024 to roughly one month.

There is also a product-mix effect at work. With preform supply nearly maxed out, manufacturers are steering preform resources toward higher-value specialty fibers such as G.657.A2 and G.654.E. That squeezes capacity for standard G.652.D fiber, which means even ordinary telecom and FTTH projects feel the pressure.

Producers without their own preform capability are the most exposed. CRU notes that some fiber makers who are not vertically integrated struggle to secure stable supply, and higher preform costs have fed directly into higher fiber prices.

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How long can this last?

Nobody can give an exact date, but the supply side points to a slow relief. A few reasons:

1. Adding preform capacity means installing deposition equipment and stabilizing production processes, which typically takes 18–24 months. Capacity ordered today will not reach the market anytime soon.

2. The demand is structural, not a short-term spike. According to reports this shortage differs from past telecom cycles because it comes from sustained, incremental demand tied to AI data centers. Data centers account for roughly 18–20% of demand today and are projected to reach 30–35% by 2027.

3. Large buyers are locking in supply. In September 2026, Verizon and Corning signed a multi-year agreement covering 129 million fiber-kilometers for delivery between 2027 and 2032. Long-term contracts like this take volume off the open market.

4. Forecasts point to a prolonged tightness. According to reports data center-driven supply shortages are expected to persist through 2028.

Our own read: prices may swing in the short term, and certain products could ease as new capacity comes online. But a quick return to 2025 price levels looks unlikely. For purchasing planning, it is safer to assume a tight, elevated market through at least 2027, with possible improvement toward 2028 as new preform capacity ramps up. This is a market assessment, not a guarantee.

What fiber cable buyers should do now

1. Plan earlier. Lead times are longer, so confirm quantities and delivery dates well in advance.

2. Lock in prices with longer quotes. Where possible, agree on volume and pricing for a defined period instead of ordering project by project.

3. Review your fiber specification. Make sure the fiber type (G.652D, G.657A1/A2, and so on) matches the real application. Over-specifying adds cost in a tight market.

4. Work with suppliers who have stable upstream supply. A cable manufacturer with long-term fiber sourcing relationships can offer more reliable delivery than a spot-market buyer.

5. Diversify your product mix. Keep a range of cable types — FTTH drop cables, outdoor and indoor cables, ADSS — so projects don't stall on one scarce item.

How OYI helps customers through the shortage

Since 2006, OYI has supplied fibre optic cables and solutions to customers in 143 countries. That experience helps us manage supply risk, plan production early and keep communication open with our 268 long-term partners. Our R&D team of more than 20 specialists also helps customers pick cost-effective cable designs that still meet performance requirements.

If you are planning a network project for 2026 or 2027, talk to us early. We can share current lead times, suggest suitable fiber and cable types, and help you build a purchasing plan that fits your budget and schedule.

Contact OYI today for a quotation and supply plan for your next fiber optic project.

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