DDR4 Memory Prices Decline After Recent Speculation Induced Surge
The current market for DDR4 memory shows rapid price declines after its recent price surge. The retail market price for Shenzhen's Huaqiangbei market shows a strong decrease after extended high price periods because the market has reached its selling limit. The industry has started discussions about whether past price peaks can remain stable because the current situation shows signs of a bubble burst.
The market has experienced substantial price reductions for 8GB and 16GB memory modules. The price stability which existed during early February has completely disappeared based on reports from PC assemblers and hardware manufacturers. The price adjustments are most visible in the most common memory capacities
- DDR4 8GB The price range which stayed between RMB 260 and 270 has decreased to lower levels. The market price for standard products now stands at RMB 200 while the lowest spot prices have reached RMB 180 to 190.
- DDR4 16GB The traders who want to empty their inventory have reduced their product pricing from the previous range of 700 to 800 yuan to a current price of 650 yuan.
The experts who study the industry believe that the recent price peaks happened because of a genuine supply demand imbalance. The high costs occurred mostly because of market distortions that resulted from excessive speculation. The current market behavior shows signs of increasing DDR4 shortage fears while the actual situation indicates that those fears originated from artificial causes.
The Huaqiangbei market veteran who trades memory products explained that the recent market boom happened because people expected product shortages rather than actual product shortages. The market contains enough supply of low to medium capacity products which include 2GB, 4GB, and 8GB memory products. The market exists because upstream and downstream entities engage in market manipulation to create fake product shortages.
The rapid price reduction has begun because traders have changed their price estimation methods. The market partnerships between major players have started to break down which made companies begin to sell off their remaining stock. The market experiences price fluctuations because of the stock influx which causes prices to drop.
The decline of prices brings PC builders and manufacturers back to their original price levels. The industry experts agree that DDR4 prices have remained above their actual value which makes the current price drop necessary for establishing a standard market situation.
