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【Market View】1H April DRAM Contract Prices Remain Flat and Expects to Go Stronger in May; NAND Flash Contract Price of 1H April Rose Due to Shipment Adjustment

Published Apr.07 2009,17:34 PM (GMT+8)

1H April DRAM contract prices remain flat and expects to go stronger in May, says DRAMeXchange

According to DRAMeXchange’s survey with DRAM makers and PC OEMs, 1H Apr. DRAM contract prices will still remain flat.

Though DRAM makers are eager to raise the contract prices, most PC OEMs claim that they have high inventory levels and can't accept higher prices. According to the sources, the top three PC OEMs' inventory level is between 6 to 8 weeks. DRAMeXchange believe the DRAM contract prices will remain at a low of $8/ 1GB module and may have a chance to increase during May or June '09.

DRAM DDR2 ETT 1Gb spot prices soared to $1.21 after the Chinese New Year, but subsequently fell to $0.75 again on March 10. It was up to $1.06 after the CEO of Powerchip held a media conference claiming that the market will face a serious shortage in 2H09 thanks to the big supply cuts by DRAM makers. However, the upward momentum has slowed during past week, resulting in the DDR2 eTT 1Gb average prices to fluctuate between $1.01- $1.05.

DRAM makers such as Samsung and Hynix commented that DRAM contract prices have finally reached bottom and expect DDR2 contract prices to move up by 15% to 20% QoQ in 2Q09. The makers also commented the upward momentum will start to become more evident in 2H April and gradually grow stronger in May and June ’09.

NAND Flash contract price of 1H April rose due to shipment adjustment

MLC NAND Flash contract price of 1H April, 2009, rose between 0 to 16% due to shipment adjustment from upstream NAND Flash suppliers, says DRAMeXchange.

Major NAND Flash suppliers tend to increase their shipment for system makers but decrease those for card and UFD clients. Mainstream MLC 16Gb and 32Gb products also rose between 8 to 13%.

In order to maintain the price stability and improve the profitability, most NAND Flash suppliers will not tend to increase their NAND Flash wafer production in 2Q09.

Under restocking demand of short-term rush orders with limited supply increase, we expect NAND Flash contract price to either remain at current price level or slightly rise in the short term.