DRAM Prices Continue to 'Fall' in May... Will DDR5 Be the First to Rebound?

May DRAM Fixed Transaction Price Down 3.45% from Previous Month

The fixed transaction price of DRAM (contract price between companies) fell again this month following last month. Amid forecasts that the downward trend will continue, DDR5 DRAM was evaluated as the only product currently capable of a price rebound.

Market research firm DRAMeXchange announced on the 31st that the fixed transaction price of DDR4 DRAM (8Gb 1Gx8), widely used for PCs, dropped 3.45% from the previous month to $1.40 this month.

The price of this product had plunged 19.89% last month. Since October 2021, prices have either fallen or remained steady every month without any rebound. This is the first time since July and August last year that prices have fallen for two consecutive months.

The fixed transaction price of NAND flash (128Gb 16Gx8), used for memory cards and USBs, remained the same as last month at $3.82. NAND prices have also been alternating between declines and stability every month since June last year.

[Image source=Pixabay]

Market research firm TrendForce reported that many DRAM contract transactions, which were supposed to take place in the second quarter, were concluded this month. They also explained that while DRAM prices are still declining, PC DRAM prices are approaching the bottom.

Among PC DRAMs, the latest standard DDR5 products have seen some suppliers take steps such as withholding supply from this month to mitigate price declines. The previous standard DDR4 DRAM is expected to remain in an oversupply state, but the speed of price decline may slow down in the second half of the year.

TrendForce stated, "The only product most likely to end the price decline and start a rally is DDR5 DRAM," adding, "At the end of this month, two Korean suppliers (Samsung Electronics, SK Hynix) are attempting to raise DDR5 product quotations."

However, they explained, "From the demand side, since inventory is sufficient, the spot price of DDR5 products (transaction prices centered on actual buyers such as distributors) has turned downward," and "We will monitor whether buyers will accept higher-priced DDR5 products."

This content was produced with the assistance of AI translation services.