LONDON, Sept. 16, 2020 /PRNewswire/ -- China Mobile
recently released details regarding the awards of their 2020/2021
loose-tube tender. As expected, competition for the 119.2M F-Km tendered for was strong and has now
driven bare fibre prices to record low levels.
From just a volume basis, there were a number of clear 'winners'
and 'losers'. The 119.2M F-Km was
split between a total of 14 companies with YOFC taking the top spot
having been awarded a 19.44% share, equivalent to 23.2M F-Km. This is a significant improvement
from the prior tender, where YOFC were only awarded 4.6M F-Km despite a relatively competitive bid.
In this case, they certainly could be deemed a 'winner'. Regarding
Futong, if we include their Tianjin Futong Xinmao Technology
facility, their group total beats that of YOFC.
Conversely, ZTT, who were awarded the 3rd spot in last year's
tender winning a 15.81% share equivalent to 16.6M F-Km, were awarded just 2.2% (or
2.6M F-Km) of the 2020/2021 tender.
Regarding the awards to the other 'Big 5' companies, Fiberhome lost
over 12M F-Km and Hengtong's total
volumes were little changed.
While there are some individual 'winners' with respect to
volumes awarded, overall, the price point to which this tender has
been settled is worrying for many industry participants, not just
in China, but internationally.
YOFC led with the most competitive bid which equated to
RMB39.23 / F-Km, when converted to US
dollars, this stands at record low levels of just $5.61 / F-Km of standard loose-tube cable.
Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2020/china-mobile-tender-awards-cement-record-low-prices/
Read more about CRU: http://bit.ly/About_CRU
About CRU
CRU offers unrivalled business intelligence on the global
metals, mining and fertilizer industries through market analysis,
price assessments, consultancy and events.
Since our foundation by Robert
Perlman in 1969, we have consistently invested in primary
research and robust methodologies, and developed expert teams in
key locations worldwide, including in hard-to-reach markets such as
China.
CRU employs over 280 experts and has more than 11 offices around
the world, in Europe, the
Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.
When facing critical business decisions, you can rely on our
first-hand knowledge to give you a complete view of a commodity
market. And you can engage with our experts directly, for the full
picture and a personalised response.
CRU – big enough to deliver a high-quality service, small enough
to care about all of our customers.
Photo:
https://mma.prnewswire.com/media/1274574/CRU_China_Mobile.jpg
Logo: https://mma.prnewswire.com/media/842005/CRU_Logo.jpg