Transactions slowdown - pulls down DDR prieces; pushes up SDRAM prices.

Transaction volumes trade down as holiday approaching.

Christmas and New Year holiday are on the corner, more and more offices are closing for businesses. Transaction volumes for DRAM are trading down. Asian, middle east and Africa markets are still open for trading while most US and European markets shut down for holiday. Second half of this week, there will be quieter on market since some HK and Singapore offices also close for Christmas.

SDRAM prices are trading up by speculation.

SDRAM prices still look uptrend for some real demand and some speculations. Traders are reluctantly to sell right this period time and still try to buy more from open market. They believe -

1. DRAM makers will stand tight on holding prices above cost level.

2. They also expect preparing demand for Lunar New Year (Feb. 1st) from Asian Market and replenishing demand from US and Europe after New Year Holiday.

3. The speculation on prices will rise up due to major conversion of SDRAM supply into DDR supply decreasing in SDRAM supply.

Month end - DDR prices trade down

Month end effect - The inventories moving (down from DRAM makers to distributors and traders) are pulling down DDR prices. DDR 266MHz and 333MHz product lines trade down in prices and begin to build up the inventory in channels. DDR 400MHz product lines keep slight slipping downward this week.

Very low volume on DDR transactions at spot market this week for real demand, major transactions are done between traders and distributors.