Tuesday, October 4, 2005
Industry sources described U.S. DRAM markets as stabilized, with a slight uptick reported in sales for one large chip manufacturer. Posted module price ranges were unchanged as demand remained flat ahead of anticipated pre-holiday buying. Spot activity in chip trading was considered standard-paced. DDR synch PC 2700 spec 333 chips were pressured down on the high end of the $2.48 to $2.84 per chip range, as most trading was said taking place toward the low side of the spread. This situation was also indicated for DDR synch PC 3200 spec 400 chips, placing the $2.55 to $2.92 per chip range into notional status by week¡¯s end.
In Asia Pacific, the market was quiet on Monday, with trades sidelined as Chinese buyers/sellers were away for the week-long National Holidays this week. Prices of first-tier DDR 266/333/400 32x8 types were unchanged at $2.48/$2.50/$2.55 per chip respectively amid limited deals. Sellers had earlier hoped that prices of first-tier DDR 400/333 would reach $3 per chip in September amid tightening supply and brisk demand. However, that failed to materialize.
Monday trading in Europe did not show the overdue pick-up in demand that players have been waiting for. As a result, prices remained unchanged for modules and chips, within the above ranges. There is an ongoing limited supply of DDR 1 and DDR 2s but there are few complaints given the lack of demand.
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