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Thailand drought may affect optical disc prices

A severe drought in Thailand has forced two polycarbonate (PC) factories run by Bayer and Mitsubishi Chemical to reduce output 20-25% due to insufficient water supply, according to sources at Taiwan optical disc key component vendors.

A severe drought in Thailand has forced two polycarbonate (PC) factories run by Bayer and Mitsubishi Chemical to reduce output 20-25% due to insufficient water supply, according to sources at Taiwan optical disc key component vendors.

If the drought continues until mid-July, Bayer and Mitsubishi are likely to temporarily stop PC production at their Thai factories, the sources pointed out. A supply shortage will seriously hit Taiwan’s of optical disc manufactures because the third quarter is traditionally the peak sales period, the source indicated.

However, Ritek does not seem worried about the threat, indicating that Formosa Chemicals & Fibre and Chi Mei Corporation, two Taiwan-based producers of petrochemicals, are expected to begin operating their new PC factories in China next quarter and this could ease a possible shortage of PC caused by the drought in Thailand.

TeamVR
http://www.vrzone.com
VR-Zone is a leading online technology news publication reporting on bleeding edge trends in PC and mobile gadgets, with in-depth reviews and commentaries.

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