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Thursday, May 06, 2004
Taiwan makers: OEM prices for DVD+R/-Rs discs to bottom out in 3Q

The OEM price level of blank DVD+R/-R discs has been falling since early this year due to oversupply, but the market is expected to bottom out next quarter and perhaps rebound, as global demand is growing faster than originally forecast, Taiwanese optical disc makers predict.

In addition, with the continued drop in OEM prices, Taiwan second-tier and smaller manufacturers of DVD+R/-R discs have suspended planned capacity expansion, which will also ease the supply pressure, the Taiwanese makers indicated.

Since lower prices have significantly pushed up global demand for blank DVD+R/-R discs, and with the forthcoming Olympic Games in Athens expected to stimulate additional demand, Japan-based Fujiwara has upwardly adjusted its forecast of global DVD+R/-R demand. In addition, the coming launch of 16x DVD+R/-R discs will absorb a portion of the demand for discs of 8x or lower speeds, the Taiwanese makers pointed out.

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