Contract prices for DRAM chips are expected to increase by at least 5% in February 2011, starting to gain momentum, according to Nanya Technology. The company had previously predicted that DRAM prices would start recovering as early as the first quarter.
The price tracker believes contract prices for mainstream DDR3 memory are set to recover from the bottom seen in the first half of February. Prices had declined by up to 50% during the fourth quarter of 2010.
Sources at memory module makers pointed out that an earlier rally in DRAM spot prices helped stabilized contract prices for early February. Thanks to inventory replenishing demand prior to the Lunar New Year, DDR3 spot prices soared as much as 20%. The sources expect spot pricing to gain momentum once again in March and spur prices upward in the contract market.
Spot prices for 1Gb and 2Gb DDR3 chips are likely to rise modestly to US$1.30-1.40 and US$2.50-2.60, respectively, by the end of March, the sources said.
In addition, PC makers are now at optimal DRAM inventory levels, meaning they will step up their pace of orders for the upcoming seasonal demand, the sources observed. The contract price of 2GB DDR3 modules stands a good chance of rebounding to US$20 later in the year, the sources added.
Average contract prices for 2GB and 4GB DDR3 modules stayed unchanged at US$16.50 and US$32, respectively, in the first half of February. Prices had fallen over the previous four months.