Increased polycarbonate price could result in little higher CD-R prices

September 5, 2004

GristyMcFisty used our news submit to tell us that Digitimes reports that one of the materials used in CD-R manufacturing - polycarbonate (PC) - is currently getting a little more expensive. Since this material is one of the main ingredients of a CD-R this could mean that prices of CD-R discs would raise a little. However CD-R prices have alread hit an all time low, competition is intense and larger manufacturers have already said that they still have long term contracts with lower prices.

General Electric (GE) was the first company to raise its PC prices, but other makers have followed suit, including Germany-based Bayer, Japan-based Teijin, and Taiwan producers Formosa Chemicals & Fibre and Chi Mei Corporation, the makers indicated.PC quotations have risen from NT $ 40-60 per kilogram in July to NT $ 60-80 currently, they added. PC accounts for a large portion of the total material cost of making CD-R discs.

CMC Magnetics and Ritek, the top two makers of optical discs in Taiwan, indicated that they have a steady supply of PC in terms of volume and price based on long-term contracts and the price increase will not substantially affect them.

Due the intense competition - rumours are that some companies sell their discs below manufacturing price - it's unlikely that prices will increase a lot. Read the entire story at Digitimes and discuss this in our Media
Forum .

Source: Digitimes.com