Feeds

Oil costs force 10% DVD±R price rise

Plastic prices harden

  • alert
  • submit to reddit

Recordable DVDs are likely to become more expensive in coming months as rising oil prices push up plastic costs.

At issue is the cost of optical-grade polycarbonate, the material used to protect the data-storage layers within DVD+R and DVD-R discs. The material's average price dropped to around $3.2 per kg back in April, DigiTimes notes, but now prices are rising again, reaching the previous record-high, $3.5 per kg, as crude prices have escalated. This year has seen already seen oil prices reach record highs.

That is forcing disc makers to up their own prices, with Taiwanese manufacturers now planning increases of around ten per cent during Q3, local sources claim, according to the report. Last year, aggressive competition forced them to absorbed a 20 per cent increase in material costs, again driven by rising oil prices.

Taiwan's optical disc makers include some of the industry's biggest players, including Ritek, CMC Magnetics and Prodisc. Together, they supplier more than half of the world's DVD±Rs, not to mention a comparable percentage of the CD-R and CD-RW discs that ship around the globe.

They are expected to ship three billion recordable DVD units this year alone, rising to five billion in 2006. That's a lot of polycarbonate. ®

Related stories

Toshiba, Sony fail to agree - again
TDK touts 100GB recordable Blu-ray Disc
Californian boffins plot piracy-proof DVD players
Toshiba unveils 45GB HD DVD
Toshiba slams Blu-ray/ HD DVD convergence claims
Counterfeit optical disks hit the UK channel

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.