 The prices for CD-R discs will rise moderately to US$ 0.20-0.25
in 2004, compared with US$ 0.20-0.22 currently, according to sources at
leading Taiwan-based suppliers.
The sharp price hikes are unlikely to be repeated next year
now that global demand has stabilized and most of Taiwan's CD-R disc
makers have suspended capacity expansion for CD-R discs. Instead, they
have been focusing on expanding production of DVD+R and DVD-R discs,
sources said.
A recent ruling by the US International Trade Commission
(ITC) against a request from Royal Philips Electronics to block imports of
CD-R discs from Taiwan will also help stabilize CD-R prices in coming
months.
The ruling offers an opportunity for Taiwanese manufacturers
to bargain with Philips for a lower royalty payment on use of its patented
CD-R manufacturing technology, sources said.
Sources also pointed out that the leading Indian CD-R maker,
Moser Baer India (MBI), which launched a cut-throat competition to win
orders in the third quarter of this year, is now offering prices
comparable to those quoted by Taiwanese makers.
According to the Japanese research firm Fujiwara-Rothchild,
global demand for CD-R discs will reach 11.87 billion units in 2004, up
12.8% from the 10.52 billion units projected for this year, sources
said. | 
