Demands are not back yet.

Demands are not coming back yet.

Although Western New Year Holiday seems over, demands are not coming back yet - no matter in replenishing or pull-in effect before Lunar New Year Holiday (Eastern New Year holiday) at this week. Markets still run at low level base run-rate on the spot market at early of this week, at the end of this week we expect to increase a litte bit on the spot market at higher volume in transaction turnover.

Asian Market:

Asia Markets are most active markets right these days. Demands from mainland China are still running ok, but the plenty supply in China from Hynix in SDRAM are sufficient for domestic market already, therefore there are not much purchasing activities from outside of domestic market. Besides, China market is also a very competitive market almost major players have the distributors and channels there already.Hynix was used to be the No. 1 brand name value in China market. Since the fake Hynix issues and recently ample supply in China comparing with Samsung's tight supply there, Hynix's brand value seems drop down together with prices in China market. DDR volumes are also moving stabilized there. Rests of Asian markets are most moving into the trading demand not real end-demand.

US market:

With the events moving closer to a possible war with Iraq, end demand seems weak again and caution inventory build in the channels from US market. The first business week after holiday, US market is caution in checking the channel inventory situation and the holiday consuming status right now. The replenishing demands are not coming back sharply, but regarding SDRAM prices, they are catching up with Asian market prices status right away.

European Market:

Generally, European are more leisurely and carefree, therefore they are just slowly coming back from holiday and getting to work. Marketers don't expect huge demand from European market right away.

Spot prices status:

Overall, Asian markets are watching closely the US market's direction since marketers all know the real end demand are not strong as Q1 is normally a slow quarter. The speculation and market sentiment/moment are major factors in this period of time. Channel traders and distributors are still expecting that SDRAM prices won't fall down on the spot market and DDR prices will not hold on too long.

DDR contract prices fall; SDRAM contract prices rise.

DDR-

256MB DDR module contract prices are setting from $51~$54 down from $56~$60 last month.
256Mb DDR chip prices are quoted at $6~$6.5 down from $6.5~$7.
128MB DDR module contract prices are setting $25~$28 down from $30~$34 last month.
128Mb DDR chip are quoted around $2.85~$3.35 down from $3~$3.5.

SDRAM-

256MB SDRAM module contract prices are setting from $30~36 up from $30~$34 last month.
256Mb SDRAM chip prices are quoted at $3.25~$4.25 up from $2.85~$4.25.
128MB DDR module contract prices are setting $17~$22 up from $15~$18 last month.
128Mb DDR chip are quoted around $2.50~$3.00 up from $1.75~$2.40.