Digitimes is reporting that the CD-R sector is running at full speed to fulfill orders of European distributors that are ordering a lot more CD-R's because of anti-dumping actions of the European Union.
The EU is likely to place an anti-dumping tariff on CD-R discs starting in 2002 making CD-R's more expensive.
Sources say that buyers are asking for delivery in three weeks, but it actually takes about four weeks from the time the order is placed to the preparation of materials, production, pressing and shipment of the finished product. This has created an order pile-up that has forced first-tier manufacturers like Ritek, CMC Magnetics, Prodisc Technology and Gigastorage to subcontract to Po Hsin Multimedia, Princo and Digital Storage Technology. |
Of course first-tier manufacturers still have the upper hand, not only in capacity but also in pricing. At the moment they offer a blank CD-R disc for between US$0.18 and US$0.25. Even if capacity is strapped, they can still make a small profit by outsourcing production. Prices offered by second and third-tier manufacturers are varied '“ some have gone as low as US$0.165. These companies, however, are mainly producing low-grade, low-speed CD-R discs, so a lower price is expected.
Source: Digitimes.com
