Tuesday, 17 July 2007 17:09
OEM orders for optical discs to increase in Q3
Written by David Stellmack
Significantly more OEM orders for CD-R and DVD+R/-R
Optical disc makers based in Taiwan will receive significantly more OEM orders for CD-R and DVD+R/-R discs for Q3 than in the previous quarter, but will also be hit with increased procurement costs of optical-grade polycarbonate and dyes as a result of the skyrocketing increases in the international price of crude oil.
Thus, while orders will increase, OEM prices will remain at current levels of below US$0.1 for a CD-R disc, US$0.12 for an 8x DVD+D/-R disc and US$0.18 for a 16x DVD+D/-D disc, according to Taiwanese sources.
Polycarbonate procurement costs are likely to rise to US$2.9-3/kg, increasing by 16-20% from the previous early 2007 rate of US$2.5/kg, while the cost of dyes will rise by 2-3% this quarter.
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