In fact, so far, the market is undergoing subtle changes. As the optical fiber and cable market in short supply situation in the formation, optical fiber and cable products, prices rapidly increasing, in terms of price increase for producers is good news, but the accompanying sharp rise in the price of optical fiber preform for the industry is undoubtedly a a huge disappointment. The cost of optical fiber preform in the overall cost of production in about 50% -60% of the share, currently 70% of the preform product is imported, and this year the International preform prices have increased from $ 150 to over 160 U.S. dollars . Mr Chan in an interview with reporters on the forecast in the second quarter, the optical fiber preform prices will steadily rise, this would certainly have brought unprecedented pressure on domestic enterprises. Therefore, improving the capability of independent innovation, ahead of the layout of the optical fiber preform market is the domestic enterprises must begin.

At present, many domestic enterprises have realized the mainstream and increase the area of the layout of the optical fiber preform. Armored Morimichi Cable Co., Ltd. is also planning to prepare again, analysts point out that in 2010 China's optical fiber and cable companies will usher in the field of population break preform.

Earnings from the first quarter can be seen, R & D capabilities to enhance the report also made a direct contribution, particularly in the preform part. Mr Chan told reporters that from the first quarter earnings, the ownership of the product and did not preform preform products, significant differences in performance of the company, directly reflected in the company's gross margin and net profit on.

After the first quarter of the year in the analysis of optical fiber and cable market, Ma Su Ping said that as the fiber optic cable capacity to the production start time is shorter, and the market structure is monopolistic competition in the competitive landscape, supply and demand is expected to show the country this year, "the former tight Song "posture, which in the first half demand, tight supply, causing prices to rise, gross margin growth; while in the second half with a lot of drawing capacity comes on stream, prices will come down slightly. However, the year in 2008 compared to the level of gross margin should be 4% -5% increase on the company's consolidated gross margin contribution of fiber optic cable about 2%.

key words:  fiber optic cable