:: A soft spur from Computex but weak impetus in the first week of October

Despite not fully in line with market's expectation for Computex effect, the spot market last week had a soft spur but remained stable. In contrast, the market performance this week will be relatively lukewarm owing to China's week-long National Day. The transaction activities will be halted in China and volume will be shrinking in the Asian market. However, the demand from end-users' holiday purchase is foreseeable. Without the month-end or quarter-end pressure, marketers are reluctant to take position this week since an acceptable inventory level had already been adjusted to fit their business model by the end of September. Hence, we anticipate the commodity DRAMs will swing at the current level and low density consumer DRAMs might have a slight up.

:: Contract price might remain flat

Once again, we would like to reiterate our position on the contract market's price performance. Restricted by the calm spot market, the contract price will have limited room to boost up. However, we still believe the seasonal peak will eventually emerge although the contract price might not have a significant change in 1H October.