Disc makers are concerned that the average selling prices (ASPs) for raw material polycarbonate (PC) have increased more than 10% since a November explosion at a plant of leading supplier of the important disc manufacturing material.
The resulting supply drop for optical disc-use PC has caused ASPs from leading suppliers including GE, Teijin Group and Mitsubishi to rise to US$2.80 per kilogram, representing an increase of more than 10% above previous quotes. ASPs from Taiwan makers have also increased to US$2.70, up from US$2.40-2.50 previously.
Optical disc makers had previously seen their production costs falling due to expanded PC capacity from the top four suppliers, Bayer, GE, Teijin Group and Mitsubishi, as well as from a growing number of Taiwan chemical makers. However, the explosion at a Bayer Germany-based plant has caused the company's output to fall dramatically and PC supply is now falling short of demand, driving prices back up.
Although leading optical disc makers including CMC Magnetics, Ritek have already increased their prices for optical discs (both CD-R and DVD+R/-R) by 8-10%, the increased cost of PC cost should pose a profit risk for industry players.
Story source:
.
Comments