Memory distributors have become more uncertain about demand due to the rapidly spreading coronavirus pandemic, and may adjust downward their quotes if demand turns out to be disappointing in the second half of 2020, according to industry sources.
The sources estimated previously as high as 15-20% and 30-40% inceases respectively in DRAM and NAND prices in 2020. However, as the virus spreads to more countries, the end-market demand outlook this year has become less optimistic, the sources said.
Downstream distributors have expressed doubts about whether demand will be picking up when the conventional high season comes this year, and do not rule out the possibility of cutting their quotes in advance, the sources noted. The supply chain is now keeping a close eye on price changes, the sources added.
Before the outbreak turned into a pandemic, memory distributors hesitated to sell over the past two weeks resulting in price increases particularly prices for consumer DRAM products, the sources indicated.
The coronavirus impact on demand may be more severe than that on the supply side, said the sources, adding that demand uncertainty is growing.
In the contract market, DRAM and NAND flash prices are set to rally in the second quarter thanks to a pull-in of orders for server and datacenter applications, according to industry observers. Some observers remain upbeat about the price trend this year, citing the rise of stay-at-home economy stimulating memory chip demand.
The memory market may see a disappointing 2H20
Photo: Michael Lee, Digitimes, March 2020
Article translated by Jessie Shen
