Still blooming market for DDR

$4 and $8 for 128Mb and 256Mb

First checking point of this week is the $4 and $8 for 128Mb and 256Mb DDR respectively. If the $4 and $8 can stand as the floor of the spot price, then next rising wave will begin. SDRAM rising rate remains weak than DDR due to the new orders demanding DDR Spec..

Channels haven't get enough

The most active groups of spot participators are brokers and traders who haven't got enough DDR products for trading profit yet. Demands from refilling inventory at brokers and traders are strong enough to support the price. Plus the end-demand from PC OEM and Motherboard sides also show above 20% MoM growth rate for the first order of traditional hot season. Base on that, the uptrend couldn't be just current level.

Risk still remains

Risk still remains to require frequently checking the satisfied margin from brokers and traders combining with the second or further orders from PC, motherboard growth. If there is no sign for keeping market bloom, then price will dramatically crash. Keeping the efficient turnover rate of inventory is the key of getting profit on trading.

Whole marketers have been involved in.

Now it seems all the players are participating in this game. DRAM makers keep tight in allocating the DDR product to OEM customers sometimes with the package selling (Buyers have to accept DDR+SDRAM package sales kit). Channel players are hardly find enough DDR from spot market to satisfy their demand. Module makers enjoy both in trading chip and selling module.

Contract Price is sure for over 10% rising.

Contract price has been confirmed to rise above 10%, but final price is still negotiating table. OEM customers probably won't be easy to accept too high of contract price without clear visibility of coming end-demand, on the other hand they have to recognize that currently tightening on DDR Supply situation.