Oversupply for CD-R discs remains



Mr. Belvedere used our newssubmit to tell us about an article at digitimes about the persistent oversupply of CD-R discs. The prices are low and the competition is intense.

CD-R disc prices for most of the time have remained sluggish amid capacity ramp-ups by Taiwanese, South Korean and Indian companies. The total output capacity of CD-R discs in 2002 will reach over eight billion units, industry analysts said, far exceeding the estimated worldwide demand of six billion units and dashing hopes for firmer prices in the future.

In unit price, CD-R disc quotes for the past two weeks have dropped to US$0.10, coming in the neighborhood of the US$0.11 low recorded during 2001, according to Taiwanese disc manufacturers. The prevalent quotes have been hovering at US$0.12 to US$0.13, they say.

A possible price increase has been postponed until September due to overcapacity. 'There is little room for price increases in July and August," said Gordon Yeh, CEO of Ritek.

Source: digitimes

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