Stagnant PC DRAM Contract Prices in August
September 3, 2018 | TrendForceEstimated reading time: 2 minutes
DRAMeXchange, a division of TrendForce, reports that most 3Q18 contracts in the PC DRAM market were completed in July. With contracts being mainly quarterly deals, the agreed prices for 3Q18 are generally slightly higher than those for 2Q18. Therefore, the overall trajectory of contract prices in the PC DRAM market has been relatively stable in August and is expected to remain so in September. The average contract price of mainstream 4GB PC DRAM modules has stayed at $34.5 in August, while the average contract price of 8GB PC DRAM modules has also stayed at $68. DRAMeXchange maintains its forecast that the average QoQ price increase for PC DRAM products in 3Q18 will be around 2%.
The spot market, where developments are an early indicator of the contract price trend, shows that prices of mainstream chips have kept falling in August, and their general difference with contract prices continues to widen, says Avril Wu, senior research director of DRAMeXchange. Currently, DRAM suppliers are heading into negotiations with their clients to arrange the contracts for 4Q18. However, they will have more difficulties in maintaining their prices going forward. After examining the latest changes in bit supply and demand, DRAMeXchange anticipates sliding prices for 4Q18 contracts.
In Anticipation of Falling ASPs during 2019, Clients for Now are Reluctant to Stock Up
Although 3Q18 is part of the traditional busy season, the demand growths of various end products are limited and not up to their usual seasonal levels. For instance, some smartphone brands and a few server manufacturers have marked down their shipment projections. Although end-product manufacturers as a whole are seeing a gradual drop in their DRAM inventories after posting shipment growths in this year’s first half, they are also noticing that the supply situation in the DRAM market is shifting from tight to loose. At the same time, most end-product manufacturers are highly uncertain about their own demand situations in 2H18 and the later period. As the DRAM supply expands, clients in the end market are actually hesitant to stock up and if the prices of DRAM products are likely to go down. If so, there is no urgency to replenish the DRAM inventory despite the seasonal influence.
In the case of the server DRAM market, where demand has been fairly strong, impasse on prices is now appearing in the latest rounds of contract negotiations. This is an indication that DRAM suppliers may have to lower prices to maintain or increase sales volumes for their fourth-quarter deals. Also, there are now more discounts on high-density memory modules (high-density here is defined as 8GB or above for PC DRAM modules and 32GB or above for server DRAM modules). On the whole, suppliers are showing greater flexibility in their pricing strategies because they want to lock in the shipment volumes going into 2019 and capture more market share.
About TrendForce
TrendForce is a global provider of the latest development, insight, and analysis of the technology industry. Having served businesses for over a decade, the company has built up a strong membership base of 435,000 subscribers. TrendForce has established a reputation as an organization that offers insightful and accurate analysis of the technology industry through five major research divisions: DRAMeXchange, WitsView, LEDinside, EnergyTrend and Topology. Founded in Taipei, Taiwan in 2000, TrendForce has extended its presence in China since 2004 with offices in Shenzhen and Beijing.
Suggested Items
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).
Technica USA Presents Inaugural Supplier Alliance Award at IPC APEX EXPO 2024
04/24/2024 | Technica USADuring IPC APEX EXPO 2024, Technica USA took the opportunity to thank all of their supply partners that made the effort to join them for the exhibition in their booth, as well to all of our SMT partners that had their own booths, with the latest in automation and process technology.
IDTechEx Report Unveils 3D Electronics Status and Opportunities
04/22/2024 | PRNewswire3D electronics is an emerging manufacturing approach that enables electronics to be integrated within or onto the surface of objects. 3D electronic manufacturing techniques empower new features, including mass customizability, greater integration, and improved sustainability in the electronics industry.
IDTechEx Examines the Opportunities for Wearables in Digital Health
04/19/2024 | IDTechExIDTechEx’s report, “Digital Health and Artificial Intelligence 2024-2034: Trends, Opportunities, and Outlook”, covers this ongoing trend in the consumer health wearables market and includes analysis of the opportunities and roadmap for biometric monitoring.
Real Time with... IPC APEX EXPO 2024: Pluritec's Expansion and Growth in the North American Market
04/19/2024 | Real Time with...IPC APEX EXPONicola Doria, president of Pluritec, discusses the company's strategic focus on the North American market, their investment in a new sales organization, service expansion, and a new process integration line. The conversation also covers market response and future installations, as well as Pluritec's new partnership with IEC.