DRAM spot price falls through floor

But is anyone selling?

Spot prices of the benchmark 64Mb DRAM fell through the floor today, hitting a record low in Asia, of $4 per PC100-flavoured chip, the Korea Herald reports.

This is getting perilously close to break-even territory, and if prices don't rise soon, Korean DRAM makers will consider cutting back on production, in order to shore up next year's price projections, the newspaper says.

Now this makes sense - while yesterday's Commercial Times article claiming that Korean DRAM makers actually want to force down prices - makes nonsense.

Spot prices are useful indicators of the health of the DRAM market, but they are by no means infallible. This is because the price delivers no indication of trading volumes.

Prices can go up - or down - but neither movement indicates necessarily if anyone's buying. And if spot prices get too low, DRAM makers and assemblers might not be actually selling. ®

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