Contract prices for DRAM continue trending downard in the first half of January 2011, raising concerns over sluggish demand for computer memory chips and persistent oversupply in this sector.
Early January prices for 1Gb DDR3 chips have hit as low as US$0.84, averaging US$0.91. Mainstream 2GB modules are priced at US$16-18, down 5.6-5.9%.
1Gb DDR3 were quoted at US$2.38 on average in the same period of 2010 when prices were driven up by increased demand amid limited supply.
In addition, contract prices for 2Gb DDR3 chips have slid to US$1.81 on average in the first half of January, down 6.7%. The price of 4GB modules for the period has fallen up to 5.9% to US$32-36.
Prices for 1Gb DDR3 will remain below US$1 over the next three to six months due to an oversupply in the market. Prices are unlikely to recover until the second quarter.