INCREASE IN MEDIA PRICES BOON OR BANE, CHECK OUT THE BELOW ARTICLE – CMC CHAIRMAN WONG
Taipei, June 10, 2011 (CENS)–Thanks to excessive demand, the profit margins for optical-disc makers have turned positive, while CD-R disc prices are expected to rise by 20% in the second half, according to CMC Magnetics Corp. chairman Robert Wong.
Ritek Corp., another major optical-disc maker in Taiwan, also pointed out that disc prices have been rising this year due to rising material prices, adding that disc prices are expected to further climb in the third quarter.
Wong said that many local optical-disc makers have been withdrawing from the business, while some Japanese disc makers also stopped production after the massive earthquake in March. CMC has raised all its disc prices by an average 30% in March.
The supply shortage of CD-R discs has pushed up prices by about 40% since early this year, the first since 2009, Wong said, while the price adjustment has been accepted by customers.
The chairman pointed out that the optical-disc sector has turned into a sellers’ market to benefit CMC`s future operation.
CMC is very optimistic toward sales in the second half, saying that flooding orders are filling production lines throughout the year-end, and may raise prices, while predicting fourth quarter operations to turn profitable.