The dispirited DRAM spot market still showed no signs of a pullback last week after the Chinese New Year holiday. Overall speaking, prices for DDR and NAND Flash spot price are at a downward direction.

The first reason why DDR spot price showed downtrend is the all PC makers’ shipment of last December not as good as their expectation so the demand became not strong for reducing their store. Secondary, purchase action languid due to the price drop too fast caused by module house had pressure to release their inventory to DDR spot market last week. Furthermore, some chip makers increased the quantity of output on January and February. Third, seasonal demand is coming to an end. Fourth, NTD is a hard currency recently against USD made it hard for sellers to lower offering prices making it hard to tighten the gap between demand and supply.

In NAND Flash spot market, some NAND Flash makers released their chips but demand was stagnant last week, so the transaction was limited and the price for all density glided slowly last week except 8Gb on Monday.

For DDR, as a result of spot price continues downgrade and the shipment not as expectation, we believe the first-half contract price of March will be impacted unalterable. We also have a pessimistic forecast for the decrease level will more than 5 percent. During this downgrade period, there will be a little rebound occur if seasonal adjustment show up on March.