DDR2 Contract Prices Continue To Rise

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After reporting record-high sequential growth for both DDR and DDR2 contract prices in the first half of February, the growth momentum of both memory types weakened in the second half of February, but DDR2 still managed to record an almost 10% sequential price growth amid the current shortage.

DRAMeXchange notes that most DRAM makers are still bullish about contract DDR2 pricing up during the first half of March since the current shortage should persist through that period. Some PC OEMs are maintaining that a DDR adoption rate of 50-60% could also result in limited price rises, as DDR negotiates the notionally balanced supply and demand situation, the memory trading firm stated. Most system makers are willing to accept the average 10% sequential price adjustment for DDR2, DRAMeXchange stressed. However, those PC OEMs that had already secured their stocks in early February would only see limited growth. In the NAND flash segment, the firm highlighted how spot prices for 2Gbit and 8Gbit chips had reached a cross-over point with contract prices in mid February, thus pressuring contract quotes in February.

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