DRAMeXchange sees DDR2 eTT rebounding
Posted: Fri Oct 19, 2007 8:15 am
DRAMeXchange sees DDR2 eTT rebounding slightly after slipping to a new low of roughly USD 1
Taipei, October 16, 2007---DRAM prices sink further amid poor demand and market oversupply
Last week (Oct/8-Oct/15), the DDR2 spot price continued to spiral downwards, while for the DDR, spot prices slightly edged up, due to a DDR shortage. After slipping to USD 1, the DDR2 512Mb eTT hovered between the USD 1.02~1.05 level and closed at USD 1.03, down by 5.5%. In the DDR1 market, in light of a supply shortfall in the spot market, prices climbed slightly higher. The average price of the DDR 512Mb 400MHz climbed to USD 2.66, up by 5.6%.
Amid sluggish demand, OEM buying in the contract market has been weak. If prices are not expected to rebound in November, some OEMs won’t have urge to buy in 2HOct. Up until now, a handful of OEMs have refrained from any chip buying. In contrast to September, this marks a significant downfall in transactions volume.
According to a recent study from DRAMeXchange, "Although China’s National Day holidays have come to an end, trading in the spot market saw no notable volume increase. In general, the demand in October, which is typically stronger, has not been evident. Coupled by the sufficient inventory levels of major module houses, 2nd tier module houses tend not to buy DRAMs, unless the items can be sold quickly and easily. Thus, with bare “buffer zone” in the spot market, prices have become more sensitive. Despite the DDR2 512Mb eTT prices slipped to the USD 1 level last week, the limited transactions volume and sensitive prices had little effect on the price rebound momentum. The selling pressure still remained high. Whether in the spot market or contract market, DDR2 trading has been in the doldrums. With buyers showing little interest, regardless any good market news."
1HOct NAND Flash contract price declines by 0~10%
The average NAND Flash contract price declined between 0~10% in 1HOct, where the most notable was seen in the MLC segment. Due to new manufacturing nodes, the larger MLC production output will begin to surface during 4Q07. However, for the low density SLC, the smaller output has instead slightly propped up prices. Although NAND Flash prices have largely declined since September, the cost down effect will gradually be reflected in the end product price during 2HOct~Nov. Thus, DRAMeXchange believes the NAND Flash contract price could portray a more relatively stable trend in the near term.