DRAM: comeback or false dawn?

Upward trend in pricing continues – so far

The DRAM industry has seen a modest uptick in prices since July 1 in the daily 64Mb DRAM (PC10, 8M x 8) spot market. And there's not a product shortage in sight. Market research firm ICIS-LOR attributes the firmer market to an attempt by Taiwanese manufacturers to charge more for their wares. These vendors don't want to lose so much money, according to ICIS-LOR. How sustainable this is, is anyone's guess. Since July 1 there have been modest price fluctuations (that means up as well as down!), with 64Mb spot prices hitting a high point of $6 in North America. Micron, the US DRAM vendor, reckons DRAM prices will rise again in August, pointing to reduced inventories and increased demand. However, the 30-day rolling average price of 64Mb DRAMs compiled by ICIS-LOR shows the trend is still downwards. Between June 10 and July 9, 1999 the price was $6.45 in North America, $6.50 in Europe and US$5.65 in Asia. Compared with the 30 day average for the week to July 2, prices are down 1.15 per cent in North America, unchanged in Europe and down 2.89 per cent in Asia. According to ICIS-LOR, dealers in the Asia Pacific region were negotiating deals of around $5-6 per unit. One Hong-Kong vendor expressed difficulties in concluding deals above $5.60 for 8x8 PC100. The spot price of memory modules of 64Mb DIMM (PC100)fell 4.07 per cent from last week to $34.82 in North America; 3.86 per cent to $37.95 in Europe; and 3.11 per cent down to US$36.84 in Asia. ®

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