The spot is higher than contract prices for pc100 product, that indicates no dumping of this very high demand product, and with
the pc demand will continue increasing memory content per system as it is now, and with the fall season getting ready to start, a stability
of sorts is occuring. I have already heard internal allocation plans
and the Koreans are committed so far to cut backs and one week shutdowns each month thru the end of the year. They initial said it would take 90 to 120 days to make any dent in the glut, but with July being the 2nd month into it, August shut down could keep the output down going into September which is always a strong month for Demand.
I truly believe most suppliers are short on pc100 deliveries and if the market continues to increase demand we could continue to see stability for several months, then it will depend on all those factors out there to see what happens next. Everyone has talked about die shrinks and increase yields, and it will just depend on total demand and how much each supplier decides to build, a real tough guess right now. I know this, everyone is losing money... and the bleeding is getting worse and at some point each supplier must decide how much they can stand before making a financial decison to continue or cut back. With all the news from many suppliers announcing these types of cut backs etc,. maybe the market output will shrink enough to stabilize and eventually turn around.
Good trading.
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