During the past week, trading in the DRAM spot market remained warm. Even though some DRAM distributors and traders cut their inventory level because of good spot price, but there wasn't too much supply releasing in the market. Moreover, buyers kept searching chips last week and led average price of DDR DRAM stayed in a narrow price range. Averages prices of mainstream 256Mb (32Mb*8) 400MHz DDR DRAM stayed in the range from US$4.69 to US$4.72 last week.
In line with it was difficult to get DRAM modules or chips from major DRAM makers in the spot market these few days, source also indicated some PC OEMs can neither get DRAM modules from major DRAM makers. Furthermore, on October, 17th, Intel and AMD cut down their CPU prices, respectively, and led PC OEMs have more budgets either increasing memory capacity or having sales promotions to stimulate consumers' purchase willing. Demand from the US remains warm and probably ramps up at any time. Because of tight supply from major DRAM makers and hot season demand, spot price will have little chance to drop down. Besides, PC OEMs from China seem to get rid of their long vacation inventory so we believe that they will begin to buy DRAM components in the coming weeks. Therefore, we keep our positive view to spot DRAM price and contract price.
In NAND Flash market, transactions were sluggish last week. The mainstream product transforms to 2G NAND Flash from 1G NAND Flash in 4Q04. Buyers were still waiting and looking for 2G NAND Flash and 4G NAND Flash during the past week. Even though 2G Flash have one time more price premium than 1G NAND Flash, the price premium won't last too long. The prices of NAND Flash will have pressure in the following week so average prices of NAND Flash product will probably drop further.

*Rickie Yang, Marketing Intelligence Team, DRAMeXchange

DRAM spot prices - 2004/10/12~2004/10/19