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Monday, October 04, 2004
CMC Magnetics to increase CD-R OEM prices

CMC Magnetics, the largest producer of optical discs in Taiwan, will raise its OEM quotation for CD-R discs by US$0.01 to US$0.14-0.15 per disc, according to the company.

The upward adjustment reflects the increased price of polycarbonate (PC), a key component, CMC indicated. The price of PC has risen to over US$3 per kilogram, the company noted. If sales of CD-R discs pick up during the traditional peak Christmas season, CMC may increase its prices further, company president Robert Wong pointed out.

The current prices of US$0.30-0.40 for 8x DVD+R/-R discs and US$0.80 for 16x discs already include considerable gross margins, and there is little room to increase prices for the time being, CMC said.

CMC's production utilization rate has increased from 80% in July and August to 100% currently. The company should maintain a full utilization rate through the end of October, the company indicated.


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