Storage spot market holds off: DRAM sellers reluctant to sell, DDR4 slightly declines, NAND continues to fall

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The spot market for storage chips has generally reached an impasse. Suppliers are waiting for the official announcement of contract prices in mid-April, while buyers are continuously reducing purchases due to sluggish end-user demand, with multiple factors leading to continued inactivity in trading, and both DRAM and NAND spot prices are under pressure.

According to the latest spot price tracking report from TrendForce, the average spot price of mainstream DRAM chip DDR4 1Gx8 3200MT/s fell slightly by 0.48% this week, dropping from last week's (April 8) $33.56 to this week's (April 14) $33.40.

As for NAND flash, the spot price of 512Gb TLC wafers saw a decline of 3.13% this week (April 13).

The trends in both major segments point to the same issue: insufficient momentum in the recovery of end-user demand, with both buyers and sellers unwilling to break the deadlock first, leading to continued shrinkage in transaction volumes.

DRAM: Suppliers reluctant to sell, buyers refuse to build inventory at high prices

This week, the DRAM spot market saw noticeably subdued trading activity due to end-of-quarter effects and holiday factors.

The supply side adopted an overall conservative strategy. Most spot sellers chose to stand pat, waiting for DRAM manufacturers' official contract pricing to be announced in mid-April, which will serve as a reference for adjusting their quotes. Only a few sellers, pressured by cash flow, made sporadic price reductions, but this failed to effectively stimulate market demand.

The demand side also lacked initiative. With insufficient signs of demand recovery in the end-consumer market, buyers are strictly controlling costs and generally unwilling to stockpile at current high prices, resulting in a passive performance on the demand side and continued contraction in transaction volumes.

NAND: Sellers cut prices under cash pressure, prices continue to fall

The NAND flash spot market continued last week’s pattern, with overall trading remaining cautious.

Buyers remain constrained by high prices, with most adopting a wait-and-see attitude and limited willingness to enter the market. While sellers hope that an increase in contract prices will revive the market, some sellers, under cash flow pressure, have chosen to compromise by lowering prices to facilitate deals, but overall market momentum has not shown a marked improvement.

The spot price of 512Gb TLC wafers declined by 3.13% this week, reflecting that, in the absence of clear direction from both supply and demand sides, the NAND spot price remains under downward pressure.

Short-term outlook: Contract price window approaching, market awaits direction signals

Based on the performance in both markets, the official announcement of DRAM manufacturers' contract prices in mid-April will be a key variable affecting the spot market in the short term.

If contract prices rise as sellers expect, it may help to boost market confidence and prompt buyers and sellers to resume negotiations; conversely, if prices are lower than expected, it may further intensify sell-off pressure in the spot market.

Until the official pricing is released, the wait-and-see sentiment of buyers and sellers is likely to dominate the market, and transaction volumes are unlikely to see any substantial rebound.

Risk Disclosure and DisclaimerThe market carries risks and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situation, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this content is at your own risk. ```