5G commercial optical fiber and cable demand to rise upstream materials hope to break the international monopoly

- Jul 02, 2019-

With the opening of the first year of 5G commercial development, the optical fiber and cable industry has attracted market attention, and listed companies are also increasing the distribution of upstream materials.

Taking zhejiang zhong as an example, the company has recently developed and produced fiber optic cable ointment with SEP, which was certified by the expert group.

The reporter learned from the industry that it is expected to gradually realize domestic replacement, fill the domestic gap, and break the monopoly of international giants on the domestic SEP market.


Some organizations pointed out that "5G base station densification + pretransmission fiber network" will open a new growth space for the fiber and cable industry.

On the one hand, with the rapid increase of frequency, the density of 5G base station will greatly increase compared with 4G. According to FTTHcouncil's calculation, the number of optical fiber needed by 5G base station will be 16 times more than that of 4G.

On the other hand, the introduction of 5G into the CU/DU two-level architecture, the pretransmission network will bring a new demand for optical fiber.


Fiber optic cable upstream material industry also ushered in a new development opportunity.

Among them, as the cable waterproof and moisture-proof essential materials, just the cable ointment contains basic oil, polymer materials, water blocking agent, antioxidant and a total of more than 20 kinds of raw materials.

In particular, styrene elastomer SEP, as a thickener for fiber optic cable paste and fiber paste, has a promising future.


It has been pointed out in the industry that the increase in demand of optical fiber and cable will create a huge market space for SEP, adding to the replacement demand created after the service life of optical fiber and cable used in the past, the capacity of SEP market in China is expected to reach 10,000 ~ 15,000 tons next year.


In sharp contrast to the domestic replacement of fiber optic cable ointment, the SEP market for fiber optic cable ointment has been monopolized by international giants such as American koten and Japanese cololi due to high technical barriers.

The new development opportunities brought by 5G are expected to break this situation.

Recently, zhejiang zhongcheng announced that the "styrene elastomer SEP for optical cable ointment" completed by zhongli technology co., LTD., a subsidiary of the company, passed the expert panel evaluation successfully.

According to the appraisal opinion, the product used as the cable paste and thickening agent of fiber paste for optical cable has been tested by Qingdao stende testing co., LTD., and the measured indexes meet the requirements of relevant standards and plan specification.

Relevant experts believe that with the further improvement of future product stability, products are expected to gradually realize domestic replacement, fill the domestic gap, and break the monopoly of international giants on the domestic SEP market.


It is understood that the development of SEP is very difficult and needs to overcome the five core technologies, such as anionic activity polymerization control technology and hydrogenation catalytic system, which form a high technical barrier for the development of SEP products.

Zhejiang zhongcheng has gone through more than 10 stages, such as laboratory technical route research and development, small trial technical route establishment, small trial response parameter finalization, etc., from the beginning of project approval and development. Each stage has the difficulties tackled by the whole technical team.


According to the announcement, the styrene elastomer SEP made by zhongling technology has the characteristics of transparent uniformity, moderate drop point and viscosity, coning degree and good oil separation performance of steel mesh, etc., the formula design and synthesis process is innovative, and the technology is the first level of similar products in China.


Zhongli technology has passed quality management, environmental management, occupational health and safety certification, and its production equipment, process tooling, testing methods and environmental protection measures can meet the requirements of mass production, the statement said.

The reporter learned from the company that at present, there have been customer feedback of the trial conclusion of industrial products, product quality to meet the customer's internal control requirements, is now in the sales order waiting for the production of products, the current device still needs to complete a round of equipment adaptation transformation to meet the requirement of 2000 tons per month.


At the same time, SEP is one of the products of "high performance functional polypropylene film trial production project".

According to the 2018 annual report, although the project achieved the production and sales of about 30,000 tons in 2018, it was mainly SBS and other basic and common products and was affected by the fluctuation of raw material price, so it suffered a big loss.

SEP is expected to have a positive impact on the performance of zhongli technology and zhejiang zhongcheng in the future after its successful r&d and pilot production.


Zhejiang zhongcheng said that the follow-up promotion and application of SEP products will help enrich the product structure of zhongli technology, have a positive impact on its future market development and technology development, and improve its continuous innovation ability and core competitiveness.

However, the effect of new products and technologies on the company's business performance will also be affected by policies, market demand, industry development and other factors.

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