With a growing number of OEM orders from retailers in the US, Europe and Latin America to build up their stock of blank CD-R and DVD+/-R media, Taiwan-makers expect to see a growing number of orders to deal with during this 3rd quater. However, one issue they currently face is the growing costs of optical-grade polycarbonate and dyes as a result of recent crude oil price hikes, with OEM prices expected to remain unchanged.
At present, OEM prices for CD-R, 8x DVD+/-R and 16x DVD+/-R discs are US$0.10, US$0.12 and US$0.18 respectively, however, prices of polycarbonate is expected to rise by 16% to 20% and the prices of dyes are expected to rise by 2% to 3%. Both together make up 30% to 40% of the total production cost per optical disc. So it will be a challenge for the these makers to sustain their gross margins.
Full details can be read in this DigiTimes report. Thanks to GristyMcFisty for letting us know about this news.
