The traditionally quiet 3rd quarter will be made worse for disc makers by polycarbonate suppliers plans to raise prices by 5-7% due to large hikes in oil pricing.
The traditional slow sales period is mainly due to decreased demand in the US and Europe over the summer, the sources indicated. Based on received OEM orders, utilization rates are estimated to drop from 70-80% currently to 50-60% in the third quarter of 2008, the sources noted.
While OEM quotes for CD-R and DVD+R/-R discs for April and May of this year generally remained unchanged, a few second-tier Taiwan-based makers, including Prodisc Technology and Optodisc Technology, have offered lower quotes in June in order to clear inventory, the sources pointed out.
With the decreased demand but increasing costs, it is not yet certain whether OEM pricing for CD-R and DVD+R/-R discs for next quarter will remain unchanged or slip, the sources analyzed.
Story source:
digitimes.com.
