The contract price of DRAM chips rose slightly in the first half of this month as the world’s No. 2 computer memory chipmaker, SK Hynix Inc, faced difficulties in quickly restoring production at a fire-damaged plant in China to feed growing market demand, market researcher TrendForce Corp (集邦科技) said in a report issued yesterday.
Snail-pace supply increase from the South Korean firm and increased demand from computer brands during the holiday season in the US, Europe and China have helped PC makers digest their inventory, the Taipei-based market researcher’s DRAM research team DRAMeXchange said.
PC makers reduced their inventories to normal levels of three weeks or four weeks, from as many as six weeks in August, DRAMeXchange said.
The report added that inventory of large PC brands even dropped to below three weeks.
That has prompted the price of mainstream 4GB DRAM modules to climb 3 percent to US$34 per unit in the first two weeks of this month, from US$33 two weeks ago, according to DRAMeXchange.
The price of 2GB DRAM modules also rose 3 percent because of a significant decline in supply, it said.
The price uptick has surpassed market expectation, HSBC Securities’ Seoul-based analyst Ricky Seo said yesterday in a separate report.
HSBC expects the contract price to rise another 3 percent to 5 percent in the second half of this month, because of unresolved yield issues and persisting replenishment demand from PC makers in preparation for the upcoming Lunar New Year shopping season.
That would also bode well for next quarter’s outlook, Seo said, adding that the contract price would decline less than 10 percent sequentially next quarter, supported by inventory buildup demand.
In terms of unit chip price, the contract price of 4G DRAM chips increased to US$4.06 per unit in the first half of this month, while the spot-market price leapt 8.5 percent to US$4.13 per unit, implying further upside for contract prices, DRAMeXchange said.
“The contract price will extend the uptrend in the second half of this month,” DRAMeXchange said, citing the improving supply-and-demand situation.
The uptrend is expected to persist in the short term as SK Hynix would not be able to churn out massive production from its plant in Wuxi, China, due to yield problems, it said.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS