DRAMeXchange> Weekly Research> DDR2 spot price decline 15% from mid-Nov due to the supply increase
        
 

【Market View】DDR2 spot price decline 15% from mid-Nov due to the supply increase


Published Nov.27 2009,14:24 PM (GMT+8)

DDR2 spot price decline 15% from mid-Nov due to the supply increase

Started from mid-July, DDR2 1Gb eTT spot price has skyrocketed 150% to US$2.62 from US$1.05. However, the spot market start to fall at 11/10 that DDR2 1Gb has sharply shrunk 15% to US$2.22 from US$2.62 in two weeks after four month upward pricing trend. Observing from the market side, brokers tend to lower their inventory for hedge profit since the price has stubbornly ups and downs in past two weeks while PSC and Nanya had raised their shipment in spot market. All situations combined resulted in the spot price downward correction. We also found some white-brand DDR2 2GB module price has dropped to the point below US$34, which indicates below US$2 for 1Gb price. We DRAMeXchange expect the spot price will likely ups and downs in the range of US$2~US$2.5.

2H’Nov. “Average” contract price remains flat and will face the downward pressure in Dec.

In contract market, 2H’Nov. contract price has announced to be remain flat after four month skyrocket 82% upward pricing trend that DDR2 2GB “Average” price recorded in US$41 while “High” price has dropped to US$46 from US$50 since most deals have been done for one month while less US$50 shipment accepted in 2H’Nov. Unlike the previous periods that severe DDR2 shortage and PC shipment enhancement has forced 1st-tier PC-OEM to require extra urgent orders and insufficient volume for 2nd or 3rd tier PC-OEMs. That is, 1H’Nov. DDR2 2GB “High” contract price reached US$50, which indicates the US$3 for 1Gb price. We DRAMeXchange expect the Dec. contract price will initiate downward pricing trend with estimated 5%-10% price decline.