DRAM contract prices fell by over double digits in April. The price has fallen more than 55% this year. Inventories in the memory industry remain high, which is why it is unlikely that the price will rebound in 2Q. Some expect, however, that the market will recover in the second half of the year as major companies are refraining from expanding.
According to market researcher DRAMeXchange on the 30th, the contract price for DDR4 8 Gigabit (Gb) 2133MHz products, the flagship DRAM product, fell 12.28% to $4 from the previous month. The price of the product also fell two digits in January (-17.24%), February (-14.50%), and March (-11.11%). This means that the decrease this year alone was 55.13%.
"DRAM suppliers failed to effectively reduce their excess inventory," DRAMeXchange said and added, "PC DRAM products are expected to decline continuously through May and June. The price will continue to fall until memory stocks are exhausted.”
In addition, the NAND flash price, another flagship memory type, is also falling constantly. In April, the contract price for 128Gb multi-level cell (MLC), the NAND Flash general purpose (for USB and card) main product, decreased by 3.16% from the previous month to $3.98. NAND flash prices also fell 15.41% this year.
An industry official explained, "The price may rebound in the second half of this year as the demand for finished products such as PCs is growing and the memory industry as a whole is refraining from expansion.”