Digitimes reports that a factory that produces a chemical called Phenol has suffered from an explosion. Fears were that the chemical that is -in the end- used in the production of polycarbonate would increase the price of CD-Rs.
As polycarbonate is one of the major ingredients of CD-Rs. However most companies do not expect any problems.
Phenol is a chemical used to make naphthol, one of the several compounds found in polycarbonate (PC). PC, in turn, is the main ingredient for CD-R disc substrates, and takes up 60-70% of a disc's material costs. |
Some of the Taiwanese disc manufacturers surveyed told DigiTimes they did not learn of the Ineos fire until reports started surfacing in the Chinese-language press over the weekend, which suggested phenol quotes have leapt from a per-kilo US$520 to US$600.
Leading disc maker Ritek said even if PC prices rise, it is still confident of negotiating favorable rates with suppliers by leveraging its purchasing power.
CMC Magnetics, the world's second-largest CD-R manufacturer, said it has not seen any impact from the plant explosion. Separately, it said it would bump up CD-R prices by 15% in October, following the delay of an increase scheduled for September. Ritek, in response, said it will implement new pricing 'that matches CMC's" but declined to give details.
Source: Digitimes.com
