Weekly Info. 2005/11/22
Posted: Tue Nov 22, 2005 9:31 pm
Limited transactions, limited drop
The absence of DRAM spot pricing momentum, together with the limited transactions had dragged overall prices dropped by a slight 1%-1.5% over the week November 15-22.
Mainstream DDR 32Mbx8 400MHz was down from US$2.22 to US$2.19 while the same-density efficiently tested eTT (UTT) chip was down from US$1.96 to US$1.94. DDR 512Mb 64Mx8 dropped 3% from US$4.69 to US$4.55. As demand for DDR2 NMB (Non-major-brand) only accounts for than 5% of demand in compare with DDR chips, its price remained still with price dipped from US$3.23 to US$3.22 only.
Buying incentives at the DRAM spot market has turned listless as players believe DRAM prices should keep staying at the downward trend. Industry players are expose under growing pressure to clear out stock during month end. DRAMeXchange sees Micron is facing a quarter-end pressure as well as November is the end of the fiscal 1Q06 for Micron.
PC OEMs extended negotiations, rewarded for further price reduction
PC OEMs who have aggressively strived for lower quotes had dragged DRAM contract prices trending downward in 2HNov. Despite memory makers hold firm against PC OEMs' price reduction requests, PC OEMs extended the negotiation duration over weekend and had successfully rewarded with a 5-6% drop in compare to a 3% drop that initially settled on November 18. The gap between the low-range of DDR2 512MB and same-density DDR has dropped from US$3.5 to US$3 accordingly.
As most DRAM makers shift more capacity from DDR2 back to DDR production, the price gap between these two parts is expected to narrow down in the next update. Noted that DRAM price trends should remain downward as demand is expected to shrink significantly in December and decline further during 1H06.
Three major Taiwan-based DRAM makers, Nanya, Powerchip and ProMOS have reported profit margin of 21.18%, 21.5% and 17.5% respectively in 3Q05 with average spot and contract prices of DDR 32Mbx8 400MHz stayed at US$2.60 and US$2.64 respectively. Assuming average chip price to fall below US$2.2 in 4Q05, and DRAM makers continue drag their cost down 10% both on DDR and DDR2, Taiwan DRAM makers are expected to report low ten to single digital profit margin in Q4, 2005.
Spot prices for NAND Flash show mixed trends last week. The most popular item is the 4Gb part as Hynix only shipped 4Gb to its direct account customers last week. We observe that some brokers had lowered 1Gb prices in order to simulate demand but related prices still trended down from US$8.2 to US$8.12.
Prices of the 8Gb chips were traded down from US$54.36 to US$53.88 last week and 2Gb/4Gb were traded slightly up from US$29.26 to US$29.94, US$15.13 to US$15.37.
the latest information of DRAM/FLASH price all are at http://www.dramexchange.com
The absence of DRAM spot pricing momentum, together with the limited transactions had dragged overall prices dropped by a slight 1%-1.5% over the week November 15-22.
Mainstream DDR 32Mbx8 400MHz was down from US$2.22 to US$2.19 while the same-density efficiently tested eTT (UTT) chip was down from US$1.96 to US$1.94. DDR 512Mb 64Mx8 dropped 3% from US$4.69 to US$4.55. As demand for DDR2 NMB (Non-major-brand) only accounts for than 5% of demand in compare with DDR chips, its price remained still with price dipped from US$3.23 to US$3.22 only.
Buying incentives at the DRAM spot market has turned listless as players believe DRAM prices should keep staying at the downward trend. Industry players are expose under growing pressure to clear out stock during month end. DRAMeXchange sees Micron is facing a quarter-end pressure as well as November is the end of the fiscal 1Q06 for Micron.
PC OEMs extended negotiations, rewarded for further price reduction
PC OEMs who have aggressively strived for lower quotes had dragged DRAM contract prices trending downward in 2HNov. Despite memory makers hold firm against PC OEMs' price reduction requests, PC OEMs extended the negotiation duration over weekend and had successfully rewarded with a 5-6% drop in compare to a 3% drop that initially settled on November 18. The gap between the low-range of DDR2 512MB and same-density DDR has dropped from US$3.5 to US$3 accordingly.
As most DRAM makers shift more capacity from DDR2 back to DDR production, the price gap between these two parts is expected to narrow down in the next update. Noted that DRAM price trends should remain downward as demand is expected to shrink significantly in December and decline further during 1H06.
Three major Taiwan-based DRAM makers, Nanya, Powerchip and ProMOS have reported profit margin of 21.18%, 21.5% and 17.5% respectively in 3Q05 with average spot and contract prices of DDR 32Mbx8 400MHz stayed at US$2.60 and US$2.64 respectively. Assuming average chip price to fall below US$2.2 in 4Q05, and DRAM makers continue drag their cost down 10% both on DDR and DDR2, Taiwan DRAM makers are expected to report low ten to single digital profit margin in Q4, 2005.
Spot prices for NAND Flash show mixed trends last week. The most popular item is the 4Gb part as Hynix only shipped 4Gb to its direct account customers last week. We observe that some brokers had lowered 1Gb prices in order to simulate demand but related prices still trended down from US$8.2 to US$8.12.
Prices of the 8Gb chips were traded down from US$54.36 to US$53.88 last week and 2Gb/4Gb were traded slightly up from US$29.26 to US$29.94, US$15.13 to US$15.37.
the latest information of DRAM/FLASH price all are at http://www.dramexchange.com