Prices for DVD discs may rise 5-10%

DigiTimes reported that CMC and Ritek will not run their plants during the Chinese New Year holiday in mid-February, the monthly production capacity of DVD discs in the whole industry will shrink by nearly 1/3. There will be a shortage in the optical discs market and CMC plans to to raise the price of DVD discs by 8-10% while Ritek will increase its price by 5-10% in the 1Q of 2007.

Today’s Chinese-language Economic Daily News (EDN) reported that since Taiwan-based optical discs makers such as CMC Magnetics and Ritek will not run their plants during the Chinese New Year holiday in mid-February, the monthly production capacity of DVD discs in the industry as a whole will shrink by nearly one third.

With a potential shortage in the optical discs market, CMC said the company plans to to raise the price of DVD discs by 8-10% in the first quarter of 2007 while Ritek will increase its price by 5-10% during the period, the paper said.

Source: DigiTimes