CD-R disc makers in Taiwan, China and India will raise their prices by an average of 7-10% next quarter amid capacity reallocation from CD-R discs to DVD+R/-R ones, according to the companies.
The quotes for CD-R discs from Taiwan-based makers such as CMC Magnetics and Ritek will increase from US$0.12-0.13 now to US$0.13-0.14 next month while those from makers in China and India will be raised from US$0.09-0.1 to US$0.1-0.11, according to newly released quotes from the companies.
This is the first time that disc makers from the three regions have planned on price increases of US$0.01 at the same time, sources said. Disc makers from China and India used to compete for orders by lowering their prices, with China-based vendors even quoting prices as low as US$0.08, the sources indicated.
While attributing the price increase mainly to a shift in capacity from CD-R discs to DVD+R/-R ones, disc makers pointed out that the rise is also being caused by the exit of several small-to-medium-size companies from the CD-R market amid falling CD-R quotes and PC component quotes.
The makers expect tight supply of CD-R discs to persist in the future, as the demand for CD-R discs will remain at 9-11 billion units each year and CD-R disc capacity is not expected to increase.
Story source:
digitimes.com.
