[World DRAM Price] DRAM Price Continues to Drop in Asia
July 14, 1999 (TOKYO) -- The rolling average 64Mb DRAM (PC100, 8M x 8) contract price for large users in the 30-day period up to June 25 (May 27-June 25, 1999) was US$6.63 in North America, US$6.69 in Europe and US$6.19 in Asia, according to ICIS-LOR's worldwide DRAM price survey.
ICIS-LOR has operating units in London, Houston and Singapore.
In comparison with the preceding week (the rolling average in the 30-day period up to June 18), the price in North America declined by 1.94 percent. Similarly, it declined by 3.44 percent in Europe and by 6.65 percent in Asia.
As for prices of memory modules, the spot price in North America for 64Mb dual in-line memory modules (DIMM, PC100) declined by 4.22 percent to US$37.83. It declined by 2.83 percent in Europe to US$40.85, and it declined by 0.91 percent to US$39.07 in Asia.
The 30-day rolling average for 64Mb synchronous DRAMs (8 x 8 for large users) appears to be bottoming out in the North American market. By contrast, the price is continuing to decline in the Asian and European markets.
However, because shipments of personal computers have been good in terms of the number of units, the inventory level of some DRAM makers began to decline in June.
If the performance of the PC market continues to be robust, there is a possibility that a shortage of DRAMs may occur. Whether or not demand for DRAMs will rise in the fall, directed toward the year-end sales battle of PCs this year as it has done in past years, will be the key to watch.
Many PC makers believe the demand for PCs in the year-end season will be depressed. They say many corporate users will take a wait-and-see attitude to see how the Year 2000 problem will actually unfold.
Table: 30-Day Rolling Averages of 64Mb DRAMs (PC100, 8M x 8) May 27-June 25, 1999 for large users (survey by ICIS-LOR)Area
Contract price
Week-on-week comparison
North America
US$6.63
-1.94%
Europe
US$6.69
-3.44%
Asia
US$6.18
-6.65%
*Week-on-week comparison is the comparisonwith the 30-day rolling averages of May 20 - June 18, 1999.
Related story: Asian DRAM Market Stays in Downward Slide; Price Drops 6.24 Pct. in One Week
(Nikkei Market Access)
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