Spot prices for 1Gb DDR2 may return to US$1, as end-market demand remains sluggish, memory module makers have estimated. Though the memory spot market has recently shown activity, demand will still play a key role in determining DRAM quotes in March, according to the makers.

Demand from China and Japan has picked up, but Europe and America still remain weak, the makers commented. Overall, 1Gb DDR2 will find it difficult to reach the US$1.5 mark, the makers indicated.

The oversupply-driven downturn in the commodity memory market has improved as a result of production cutbacks and Qimonda's exit from the market, but is still far from a full recovery, the makers said. Ultimately, contract prices for mainstream DDR2 chips went up by only 6-8% in the first half of February, presenting a lower-than-expected gain, according to the makers.

Latest quotes gathered by DRAMeXchange show that contract prices for DDR2 modules rose 5-6% in the first half of February. The average prices of 1GB DDR2-667 and 2GB DDR2 modules climbed to US$8.5 and US$17, respectively.

By: DocMemory
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