The high price of oil is hurting more than just car owners. Taiwan's disc makers are also looking a hike in polycarbonate costs. According to DigiTimes, polycarbonate suppliers plan to raise prices by 5-7% later this year.
While the third quarter of each year is traditionally an off-peak period for Taiwan-based blank CD-R and DVD+R/-R disc makers, the third quarter of 2008 will potentially see makers facing an additional negative impact as polycarbonate suppliers plan to raise prices from the current level of US$2.3-2.4/kg by 5-7% due to large hikes in oil pricing, according to industry sources in Taiwan.
The traditional slow sales period is mainly due to decreased demand in the US and Europe over the summer, the sources indicated. Based on received OEM orders, utilization rates are estimated to drop from 70-80% currently to 50-60% in the third quarter of 2008, the sources noted.
The article also states that it is unclear whether or not the increased cost of polycarbonate will have an effect on OEM pricing. For the benefit of consumers, lets hope that the price stays where it is. If you'd like to read more, head on over to DigiTimes.