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DRAM makers sit on stocks

How long can they hold out?

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Spot market DRAM prices rose for the week of November 20, but mainly because manufacturers are sitting on stocks, market research firm ICIS-LOR reports.

The DRAM makers don't like today's current price slump - and they expect prices to swing back upwards in line with anticipated increased demand next spring (ICIS-LOR analysts say). This means holding onto stocks for three to four months. But can all the makers last out this long? We doubt it very much.

ICIS-LOR's 30 rolling average of 128Mb DRAM (PC133, 16Mx8) prices for large volume buyers in the week to November 24, 2000 was US$13.82 in North America, US$9.92 in Europe, and US$13.56 in Asia. Prices were stable in North America, down 7.07 per cent in Europe and 6.76 per cent down in Asia, from the previous week. AsiaBiztech reports.

The spot market for memory modules saw 128MB DIMMs (PC133) down 7.14 percent from the previous week to US$62.58 in North America, 6.88 per cent down to US$60.89 in Europe, and 4.86 per cent down to US$56.32 in Asia. ®

Related link

Asiabiztech: Spot prices show some sign of recovery

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