Ritek to raise CD-R disc pricing

According to DigiTimes, Ritek has recently announced it will be raising its prices for CD-R discs to US$0.12, up from US$0.11. The supply shortage in the CD-R disc market now stands at over 20%. Ritek has been able to gain new orders from two Japan-based brands with respective monthly shipments of 10 million CD-R and 10 million DVD +R/-R discs. Sources indicated one of Ritek’s new customers is Japan-based Maxell.

Ritek’s plants are now running at full capacity and the company’s order visibility extends through the first quarter of 2007, added Chang. The company is positive about its operations for the the first quarter of 2007, Chang pointed out, adding that Ritek is aggressively adjusting its product mix and increasing its shipment proportion of DVD+R DL (single-sided double-layer) discs and 8cm DVD+R/-R discs in order to increase its gross margins, Chang said.

Second-tier makers such as Prodisc Technology, Gigastorage and Lead Data all commented that the shortage of CD-R discs is getting serious. The companies noted they will increase their quotes if market dynamics worsen.

Source: DigiTimes