SDRAM rallies during this uptrend?

DDR allocation still remain tight for a while.

DDR prices are already standing steady over $4 and $8 for 128Mb DDR and 256Mb DDR, respectively. At the end of month, DDR prices should take a break before the next ride. We are not seeing any regular month-end volume selling activities from DRAM makers this month, which indicate that allocation on DDR products still remain tight. Most of the module makers we interviewed told us that it has been difficult for them to get enough allocation of DDR products over the last few weeks. Distributors and channel traders are the most sensitive groups to react for this month-end; therefore we are sensing some price weakness from them. However, overall, it won't have too volatile an effect on DDR prices this week because of the lack of major inventory adjustments from DRAM makers.

SDRAM- taking the last chance to clean up inventory.

In line with our expectation, SDRAM will take the last chance to clean up the inventory in November. The PC industry should cooperate to create the demand for SDRAM as CPUs, chipsets, motherboards and memory all are trying to clean up their excess inventory. Low cost PCs (SDRAM models) will sell to some price sensitive areas for Christmas and New Year's holiday. Currently, DRAM makers won't release 256Mb SDRAM parts below $3 - and marketers expect the price will raise higher than $2 and $3 for 128Mb and 256Mb SDRAM, respectively.

SDRAM inventory notice.

As we mentioned in early October, the whole industry's SDRAM inventory is relatively high. Most of these inventories are choked up at DRAM makers, major distributors and module makers. Although the channel also has some inventory, it is comparetively low.

Another round of up prices in November.

Most marketers believe prices will renew their rising up (both for DDR and SDRAM) during the 1H of November. Contract prices will also try to rise up again for the 1H of November as DDR allocation remains tight. SDRAM will be more actively traded in spot market rather than in contract market this week and next week.