The languishing DRAM spot market appears to show no signs of a pullback last week as the Thanksgiving holidays quieter trade with DDR 400 dropping nearly 4% to $3.87 and eTT down 7.5% at around $3.55.

Moreover, growing uncertainties are casting a shadow over the future trend, forcing not only traders but also OEMs to place their orders on a hand-to-mouth basis. The soft prices, resulting from weak holiday demand, have dampened market confidence in spot trade. With the year approaching to an end soon, traders and agents are under growing pressure to undercut their prices and to clear out their inventories in order to achieve the annual targets and financial results. In conclusion, In DRAM market with strong supply and weak demand, we expect that spot price will drop further in December and contract price for the first half of December will also descent.

The prices of SDRAM 4Mx16 and SDRAM 1Mx16 have been on a downturn for a few months.
A supply glut and piles of inventories added heavy pressure on the prices, while Samsung and Hynix pushed them further down by releasing their chips at prices below production cost in order to boost buying. Compared with the beginning of this year, the prices of 4Mx16 and 1Mx16 (Chart 1) have dropped around 54% and 59% respectively. However, we think the prices won't go further down and may keep stable or rebound slightly.

Chart 1