DDR2 eTT rockets, Contract quotes persist stability

DXI reserves up from 4,356 to 4,392 last week after experiencing DDR2 eTT (UTT) price rebound. Contract market persists its price stability as we previous estimated with most PC OEMs saw quotes stayed flat, thanks to the benefit from expanding output.

Noticeable price rally for DDR2 eTT (UTT) was found at the spot market last week. When spot price dropped below US$5, rebounding signs started surfacing from Nov 3. The price eventually boosted by 6.9% on week to US$5.43 after speculated supply suspension of a certain DRAM maker to the spot market this week.The price fluctuation of DDR2 eTT (UTT) chips had also impacted branded chips and resulted in a slight sequential gain for DDR2 512Mb 667MHz chips.

Since inventory level at channels and distributors have been eased considerably after weeks of price fall, this wave of price rally that came in sudden has stimulated some marketers in the channels sneaking the chance to make a fortune. DRAMeXchange regards the pre-stock demand for Christmas as a key DRAM spot price trend indication over the coming two weeks. If the market is in lack of any critical catalyst, a DDR2 eTT price upturn remains doubtful for us.

For the DRAM contract market, prices generally quote flat in 1HNov. Most quotes for DDR2 512MB DIMMs maintained flat at US$47-48 with only limited PC OEMs being requested for higher quotes. DDR2 512MB 667MHz were mostly quoted at US$49-50, highlighting the price difference with the lower frequency rate DIMM to 5%. Looking into 2HNov, price up for DDR2 is unlikely as the seasonality uptick is about to end soon.

A cold week for NAND Flash again...

NAND Flash transaction at the spot market was quiet last week due to month-end financial pressure among industry players. Price showed downward correction in a mild rate. Although a short-lived price rebound was found before, buyers seem not much affected by the market noises and the entire market place did not show any improvement at all.

The entire market was filled with bountiful stock since most key suppliers focus their shipments to Asia-Pacific regions during month ends. Although buyers generally looked for lower quotes and requested price adjustment, the drop in the past two weeks prompts sellers hold firm on price adjustment and reject to suppress quotes. Transaction does not take place as marketers could not reach consensus on prices.

All density of NAND Flash trended down again in the week Oct31-Nov 6 with 16Gb suffered the hardest drop of 2.9% at US$32.02. 8G followed with a drop of 1.6% at US$14.98, 4Gb dropped by 1.3% to US$7.89; 2Gb 0.8% to US$5.01 and 1Gb 1.1% to US$2.69.