CMC Magnetics and Ritek are looking to raise disc prices by 10-15% for CMC while Ritek will look at order volumes before determining rates.
The two largest Taiwanese manufacturers of blank discs are looking to increase OEM quotes for DVD+R/-R discs for the fourth quarter of 2008.
As many small blank optical disc makers in China and several second-tier makers in Taiwan have withdrawn from the market, the global production capacity of blank optical discs has fallen short of global demand since the beginning of the third quarter 2008, CMC pointed out. In light of the favorable situation, CMC hiked its OEM prices by an average of 10% in August and Ritek followed suit soon after, industry sources pointed out.
Following the price hike in August, CMC's monthly order volume has risen by about 8% from before the increases, the company pointed out. As the fourth quarter is traditionally a peak sales period, CMC has decided to further raise its OEM prices for October-December, the company indicated.
According to Ritek, its DVD+R/-R disc production capacity has been booked up throughout the next quarter. It has not yet decided how much its quotes will increase for the quarter.
Gigastorage and Lead Data, two second-tier disc makers, commented that global demand for blank DVD+R/-R discs is booming and consequently they are considering adjusting OEM prices too.
Story source:
digitimes.com.
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