Market Situation Update for 2nd week

Snowball-Effect on price.

Price raising speed is like a small snowball becoming to a big snowman. Marketers' chasing product makes the snowball-effect existing not only on the price but also on the product. We noticed that sometime (although it's rarely) same product has been cyclic traded within this industry. Price, of course, is higher and higher for every transaction. What are messages inside this?

First, of course, there are not plenty product outside. Meaning- there is not much new supply from original DRAM makers or other supply sources. DRAM makers are either still very tight on allocating their output for the major OEM customers or won't sell product under certain price. As far as we know, they are very tight on allocation.

Second, um, end-demand's digesting speed is not as fast as the trading speed. Meaning- end demand does not pick up that fast as spot trading does. Those trading probably come from refilling inventory for channels. Don't ignore the demand from refilling inventory that could be very strong demand if they want to take risk.

Then, DRAM market's moment is very fast. Meaning-DRAM market is a volatile, sensitive market. Every marketer has to keep just-in-time information and trading skills to make the maximums profit, otherwise you will get burn. And actually, DRAM spot trading market is almost within a small group, you almost can count out those traders and everyone knows partial traders that make the overlapping and cyclic trading so easy and fast.

Contract will keep rising on 2H of month.

Contract price for the first half of this month can't catch up with the spot price so soon. But the DRAM makers are intending to raise more on second half of month.