The DRAM spot market remained slow this week, except for DDR1, the legacy memory product. Some unexpected demand for DDR1 from the Greater China area resulted in a noticeable price surge, according to the latest data.
Spot prices of mainstream 1Gb DDR2 and DDR3 were flat with changes limited within 1%. As of noon on July 16, the spot prices of 1Gb DDR2 and DDR3 averaged at US$2.16 and US$2.34, respectively.
Recent demand for 512Mb DDR1 has been strong. More buyers are asking for DDR1 for use in old PC systems or electronic products. Accordingly, spot price of DDR1 grew by more than 4% this week, with an average price of US$2.01 as of noon, July 16.
But analyst believes the improving demand for DDR1 will be short-lived. Demand is expected to weaken after summer, with prices returning to normal patterns.
For the mainstream DDR2 and DDR3 segments, demand remained slow, with back-to-school demand yet to emerge. But in contrast to the continual drops over the past few weeks, prices stabilized as some traders/brokers resumed their procurement after realizing that prices might have already hit bottom.
Demand in the NAND flash spot market also improved, especially for the low-density segment. The 16Gb multi-level cell (MLC) chip segment was boosted by demand from China's consumer electronics sector.
The mild price growth was also stimulated by speculation about Samsung Electronics planning to phase out 50nm 16Gb MLC production. Some consumer electronics makers were concerned that chips from more advanced processes might be incompatible with their existing products, and therefore stockpiled the chips.
As of noon on July 16, spot price of 16Gb MLC grew by 1% to US$4.61 and 32Gb was flat at US$6.67.