DRAM prices slump as supplies strengthen

Memory module watcher DRAM Exchange said that while the price of DDR2 1Gb chips grew by 150 percent from mid-July, in the last month spot prices have dropped by 15 percent and now stand at between $2.22 and $2.62.

Memory manufacturers Nanya and PSC have raised shipments to the spot market while brokers have dropped stocks of modules to hedge their bets, and that’s why there’s been a correction to spot prices.

The situation is slightly different in the contract DRAM market – the prices there are flat now despite an 82 percent increase since July.  A 2GB DDR2 module now has an average price of $41.

DRAM Exchange reckons that December will see falls in the contract market by between five to 10 percent.