[Insights] The Spot Price of DRAM Continues to Decline, Weak Trading Volume for NAND Flash

---

---

DRAM Spot Market:

The current decline in spot prices is also one of the reasons for TrendForce’s relatively conservative forecast. Spot prices have been falling for several weeks. Apart from weak channel demand, TrendForce has also observed that memory module manufacturers are experiencing a continuous rise in inventory levels. Spot traders, on the whole, are now feeling the pressure to sell off their stocks. As a shortage of cash flow becomes more noticeable, sellers continue to cut prices in order to drive sales.

TrendForce forecasts that the gap between spot and contract prices will widen for modules. Since spot prices serve as a leading indicator for the overall price trend, this latest development is unhealthy for the market. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) fell by 0.26% from US$1.921 last week to US$1.916 this week.

NAND Flash Spot Market:

Channel traders are now holding onto an excessive amount of inventory, which led to sluggish transactions, while the lack of usual aggressive replenishment on inventory after Lunar New Year has even forced certain spot traders to start considering on the possibility of truncation. 512Gb TLC wafer spots remain unchanged in prices this week at US$3.764.