Earlier this month we asked market insiders if they think the oil price will influence the recordable media market. Eventually many believed it has proved to be a steady and secure market since there were no changes during both plastic and oil price increases. “Oil is for sure one of the biggest components used in a disc, but over years now the market was not influenced by this,” Theobald Rüdiger of Verbatim told CDFreaks.com.
Two weeks later DigiTimes reports that Taiwan optical disc makers face a hike in polycarbonate costs since suppliers plan a price increase. Polycarbonate is made from oil and now it seems that indirectly these optical disc makers will soon see their costs rise, which could eventually result into a price increase.
Polycarbonate suppliers probably plan this increase due to high oil prices and a decreased demand in the United States and Europe. Traditionally the third quarter is an off-peak period, but it seems high costs affect suppliers' prices. According to industry sources in Taiwan we can expect a price rise of 5-7% on polycarbonate.
If this eventually will result in higher prices for consumers is unknown.
