Lukewarm spot market but rally contract market

:: Cautious market sentiment waited for the spur from contract price

The spot market for the third week of August takes a short dip but remains quiet in general. Before the release of contract price for 2H August, the marketers were cautious of inventory adjustment. Currently, the purchase , or say demand, from speculators in the spot market is disappearing and DRAM market won't show a positive signal unless the end demand reemerges. According to our close trace on MB shipment, the demand on clone market is gradually appearing. With the stimulous from end-demand, we believe DRAM prices can enjoy a slow uptrend in the short-run.

:: Continuous surge in contract price

In line with market expectations, the contract price for 2H August surged again. However, the uptick momentum for 2H August is not as significant as that for 1H August but stands at a mere 3%-5%. The explicit trend is that SODIMM will remain at the current level of price premium with DIMM, indicating a robust demand on notebook. As for the price of DDR 400MHz, it doesn't demonstrate a vigorous uptrend, signifing a weak market acceptance for new specs. After all, in the wave of low cost computers, only decent incentives can stimulate consumers' desire to spend more.