International prices of optical-grade polycarbonate (PC) - a key ingredient in disc production - have dropped by 11-17% due to falls in prices of crude oil.
The news will help Taiwan-based OEM makers of blank optical discs reduce their production costs, according to industry sources.
The PC price cuts are attributed to main international suppliers, including Teijin Chemical, Mitsubishi Chemical, GE Plastics and Bayer, the sources indicated. Two Taiwan suppliers of the material, Chi Mei Corporation and Formosa Chemicals & Fibre, have also lowered prices by 11-13% from NT$90/kg (US$2.7/kg) to NT$78-80/kg, the sources said.
Resulting from the PC price drops and hikes in DVD+R/-R OEM quotes by 10-15% for the fourth quarter of 2008, Taiwan makers are expected to see increased gross margins for the fourth quarter, the sources noted. For Taiwan-based makers in general, utilization rate stands at 100% in November but may drop slightly in December, the sources said.
Story source:
digitimes.com.
