TAIPEI, TAIWAN: After experiencing a weeks' noticeable appreciation of 15.6 percent, DRAM spot prices stabilized last week (Jan/22-Jan/28). DRAMeXchange observes that DRAM spot prices have posted consistent appreciation over the past month amid some DRAM makers' announced facility maintenance plans and signs of price bottoming.

DDR2 512Mb eTT and DDR2 1Gb eTT posted a mild sequential drop of only 1 percent and closed at US$1.10 and US$2.20 respectively last week. The price gap between eTT and branded parts has been narrowed down also, reflecting that marketers are still optimistic about ongoing price trend, especially when most DRAM makers guide that prices should hit bottom in 1Q with rebound likely to follow in March.

A recent price comparison shows that DDR2 eTT prices are consistently trending upward. Prices of DDR2 512Mb and 1Gb eTT have grown by a respective 39.3 percent (from US$0.84 to US$1.17) and 35.5 percent (from US$1.72 to US$2.33) from the lowest to the highest level in Jan. Where comparing average prices on a monthly basis, a 15.7 percent and 10.9 percent growth for 512Mb (from US$0.83 to US$0.96) and 1Gb parts (from US$1.75 to 1.94) has been observed as well.

Price change in January

                             The highest  The lowest  Change
DDR2 512Mb eTT  1.17              0.84            39.3%
DDR2 1Gb eTT      2.33              1.72             35.5%

Compare to December

                             ASP in Dec.  ASP in Jan.  Change
DDR2 512Mb eTT  0.83             0.96            15.7%
DDR2 1Gb eTT      1.75             1.94            10.9%

In the contract market, DRAM contract price negotiation for 1HFeb is still underway. Since DRAM spot prices saw sharp growth over the recent month, DRAM makers tend to propose a raise of 3-5 percent. In light of the over 20 percent price premium that spot market delivers, some DRAM makers plan to grow their supply to spot market in attempts to generate better profit and reduce supply to contract customers, and in turn grow their price bargaining power. Impacts of their strategies are yet to be seen.