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Transactions for DRAM remain limited this week (June 29-July 3) as many module houses/distributors have their mid-year inventory check.
Vendors/distributors seldom offer quotations when they are undergoing inventory check. Therefore, as demand remains weak during slow season, buyers thus hold their procurement if no quotations is available for them to take as reference.
Yet, given that inventory among traders remains relatively low, any positive sentiment spurs transactions, as evident in the mild ASP growth in both DDR2 and DDR3 segments. When there is positive outlook projection, those who house low inventory on hand thus still willing to buy for potential gain.
Despite a positive contract pricing for DDR3 is guaranteed in 3Q, corresponding impact at spot pricing is not definite. Given that demand for new memory architecture at channels usually lags behind contract market by at least one quarter, any price big fluctuation in DDR3 spot pricing should be driven by sentiment instead of a real demand pick up we think.
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