DDR2 contract pricing loses momentum, prices fall ever so slightly in 2H March

DRAM contract prices dropped sequentially in the second half of March with mainstream DRAM parts suffering a drop up to 2%, according to figures posted by DRAMeXchange. The weakening demand momentum for DDR2 led to a slight drop in contract price of 512Mbit DDR-533 for this period, while sequential NAND flash contract prices dropped dramatically with 4Gbit pricing falling more than 30%.

DRAMeXchange noted that although some PC OEMs attempted to seek lower quotes, a present shortage of DDR2, though not as severe as February, helped to hold prices firm.

Projecting DRAM prices for the second quarter, DRAMeXchange indicated that most DRAM makers are positive. However, DRAM prices should start falling in April and May and bottom out in June.

DRAMeXchange is conservative though about overall DRAM supply bit growth for the first half of 2006, especially for growth of commodity DRAM in the coming quarter. The firm estimates that 2006 DRAM supply bit growth will reach 44.6%, down from initial estimates of 46.3%. The growth momentum will instead be concentrated in the second half of the year, as output in the first half will be constrained by capacity transitions to other memory products and yields concern on 90nm production.

A NAND flash contract price rebound is unlikely as output is still on the rise among industry players, said DRAMeXchange. Downstream players are still holding significant inventory and they have no incentive to purchase, the firm added.

Source: DRAMeXchange, compiled by DigiTimes.com.

Source: DRAMeXchange, compiled by DigiTimes.com.

Article translated by Esther Lam and edited by Esther Lam