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DRAM prices to rise more in June

Posted on Tuesday, June 03 2008 @ 09:25:03 CEST by

DRAMeXchange expects prices of DRAM memory will rise further due to a power outage at one of Hynix's memory fabs:
Following the power outage at Hynix's Wuxi, China fab on May 19, DRAMeXchange indicated that some of the company's customers were informed about a delivery delay or reduced shipment volumes. Elpida Memory has also previously mentioned that DRAM contract price will continue trending upward in June, and that, combined with the boost expected from the upcoming Computex Taipei electronics show, will help spur DRAM spot prices. The memory-trading firm believes a 5-10% price hike is possible in the first half of June.

In the spot market, DRAMeXchange is observing that the price trend was not much affected by the incident at the Hynix China fab. Prices have generally remained flat, instead of seeing an expected corresponding noticeable rise. Overall transaction volumes have also remained low.

DRAMeXchange explained that consumption in the spot market is still in a seasonal lull, despite contract prices continuing an upward trend, Moreover, a meaningful demand pick-up is not going to be seen this week in the spot market.

However, the upcoming Computex Taipei electronics show is expected to mark the upturn for seasonal demand. The spot market is expected to grow vibrant thereafter, the firm said.



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