Although CMC Magnetics stressed that its Thailand plant operation has not affected by the recent Thailand coup, industry players still worry that the supply of CD-R may be aggravated amid a seasonal increase in demand.
CMC indicated that shipments at its Thailand plant are not affected by the coup and the impact is minimal. The optical disc maker said it is well-prepared for any associated measures needed to meet any contingency.
CMC established its Thailand plant in 2005 with a maximum scheduled monthly capacity of 40 million units. The company has just completed construction at the plant and the capacity contribution is currently limited, said company sources. The Thailand plant will first focus on CD-R disc production and CMC plans to introduce DVD+R/-R volume production at the plant in 2007, the sources detailed.
Industry observers, on the other hand, still worry about the potential pressure on CD-R supply as supply has been tightening since the second quarter of 2006. The traditional hot season during September to November may further place pressure on supply. Tighter supply is evident in the rebounding pricing trend of CD-R discs and industry players noted that the general CD-R average selling price (ASP) has gone up 3-5% since the second quarter.
In related news, CMC rival Ritek, said its production is not affected by the Thailand coup as its production base remains at China and Vietnam.
Industry players also predicted that Prodisc Technology, which also has expansion plans in Thailand, will postpone its plans due to the political crisis. The company was not available for comment at the time of publication.
Story source:
digitimes.com.
