Source of the news from DigiTimes.com, the Taiwan industry's news media translated for the English world.
DVD disc prices set to jump 10%
Jimmy Hsu, Taipei; Adam Hwang, DigiTimes.com [Thursday 16 June 2005]
Leading manufacturers of optical discs in Taiwan plan to raise quotations for DVD+R/-R discs by an average of 10% next quarter, though any increase in their gross margins will be countered by the increasing cost of optical-grade polycarbonate (PC) to US$3.5 per kilogram (kg), according to sources at the makers.
After hovering for several months at a record-high price of US$3.5/kg, the price of optical-grade PC dropped to US$3.2-3.3/kg in April of this year. However, the price has recently pushed back up to US$3.5/kg, as Benzene, an important material for PC production, has seen its price jump on rising oil prices, the sources explained.
In related news, optical-disc makers CMC Magnetics, Prodisc Technology, Gigastorage and Lead Data all recently stated that they will not deal out any dividends for their 2004 operation.
That's what Ritek, CMC, Prodisc, Gigastorage, Lead Data, and some other smaller Taiwanese media manufacturers want DigiTimes.com to translate in English to the English news media. I've seen such lines on DigiTimes very many times. Read the article over and over carefully and wonder why they had to announce such plans again now. It's illegal in US and Europe for companies in the same industry to fix prices and increase at once. It's not only legal but also supported by the government and media in Taiwan and South Korea. They can do that as long as South Korean and Japanese media manufacturers cannot compete easily but for how long?