CD-R prices will go up in 2004

The prices for CD-R discs will rise moderately to US$0.20-0.25 in 2004, compared with US$0.20-0.22 currently, according to sources at leading Taiwan-based suppliers. CD-R discs were priced at lows of US$0.11-0.12 earlier this year and then shot up more than 80% to the current levels in the fourth quarter due to a surge in global demand, sources said. The sharp price hikes are unlikely to be repeated next year now that global demand has stabilized and most of Taiwan?s CD-R disc makers have suspended capacity expansion for CD-R discs. Instead, they have been focusing on expanding production of DVD+R and DVD-R discs, sources said.

According to the Japanese research firm Fujiwara-Rothchild, global demand for CD-R discs will reach 11.87 billion units in 2004, up 12.8% from the 10.52 billion units projected for this year, sources said.

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