The cost of a cable plays a significantly major role in tenders. Quality of course is a factor and also is the reputation of the supplier. Some fifteen to twenty years before, the fiber optic cable industry with a few players around was not so vibrant and unpredictable in terms of price. The demand was also low. Very few countries thought about fiber optics at that time. In fact, very few people knew what fiber optics can do to the communication at that time. With the widespread of the internet, fiber optics is now a popular technology and soon will become like the automobile or textile industry.
As the demand increases, the competition also increases in the fiber optic cable market. More fiber optic cable manufacturing companies have come into the business for the past few years. Some of them faced severe financial trouble during the telecom bubble that burst around 2001-2002. Some players could pass through this troubling situation. New companies striving to show their presence in the global business, offer the lowest prices for their fiber optic products.
Raw material price plays a leading role in the cable price. There may be a significant saving in raw material price if the cable maker gets a cheaper source for the raw material supply. China is a big supplier of raw materials for the whole world. South Korea is another leading supplier of lower price raw materials to the fiber optic cable industry Almost all raw materials used in the fiber optic cable industry are available from Chinese and Korean suppliers.
Polyamide-12 which is used in termite resistant cables as outer jacket material is not popular in China. Most of the Chinese suppliers have Polyamide-6, which has just half the price of polyamide-12. There are major differences in the performances and quality of both these materials. Polyamide-12 is a superior quality material for Nylon jacketed cables.
Quality comes with a price. Aramid yarns suppliers from China is also not present at the moment. South Korea has two suppliers for Aramid yarns. The first one who makes their own basic yarn and supply is the Kolon. Their Heracron grade aramid yarns are getting popular in the market. DS Cable Material is another South Korea based material supplier.
DS Cable Materials is a part of the DS Holdings group of companies. They have manufacturing facilities at Goa of India, Thailand, China, etc. For marketing of the products, they depend on the KOTRA, associated with the Korean Embassy in various countries. DS Cable Materials have a good history of supply goods to countries outside South Korea.
DS Cable also offers aramid yarns at a very competitive price. The name aramid yarn is almost replaced by the name Kevlar. Kevlar from Dupont is the most popular brand in the fiber optic cable manufacturing industry. Twaron from Teijin is another supplier for Aramid yarns.
DS Cable Materials have a wide range of yarns suitable for fiber optic cable manufacturing. They can supply aramid ripcords, polyester yarns, glass yarns, steel tape, etc. at a reasonable price that the fiber optic cable manufacturer can make low-cost cables to win the tender.