DDR2 spot price declines 15 percent from mid-Nov due to supply increase

TAIPEI, TAIWAN: Started from mid-July, DDR2 1Gb eTT spot price has skyrocketed 150 percent to $2.62 from $1.05.

However, the spot market start to fall at 11/10 that DDR2 1Gb has sharply shrunk 15 percent to $2.22 from $2.62 in two weeks after four month upward pricing trend, according to DRAMeXchange.

Observing from the market side, brokers tend to lower their inventory for hedge profit since the price has stubbornly ups and downs in past two weeks while PSC and Nanya had raised their shipment in spot market.

All situations combined resulted in the spot price downward correction. DRAMeXchange also found some white-brand DDR2 2GB module price has dropped to the point below $34, which indicates below $2 for 1Gb price. DRAMeXchange expects the spot price will likely ups and downs in the range of US$2~$2.5.

In contract market, 2H’Nov. contract price has announced to be remain flat after four month skyrocket 82 percent upward pricing trend that DDR2 2GB “Average” price recorded in $41 while “high” price has dropped to $46 from $50 since most deals have been done for one month while less $50 shipment accepted in 2H’Nov.
　
Unlike the previous periods that severe DDR2 shortage and PC shipment enhancement has forced 1st-tier PC-OEM to require extra urgent orders and insufficient volume for 2nd or 3rd tier PC-OEMs.

That is, 1H’Nov. DDR2 2GB “High” contract price reached $50, which indicates the $3 for 1Gb price. DRAMeXchange expects the Dec. contract price will initiate downward pricing trend with estimated 5-10 percent price decline.