DRAM output continuing to grow, oversupply in the DDR and DDR2 segments will continue over the upcoming months, and the effects on memory price trends in both the contract and spot markets.

InSpectrum noted that the output ramp from both Taiwan and US makers were fairly stable in October, while a Germany-based memory maker reported output growth from its partners. Japan and Korea based vendors, in the meantime, continue to report escalating output.

Contract prices in the second quarter of November should drop further as some PC OEMs may receive special offers from memory makers. Heavy trading may expose traders to dramatic price drops, of up to 5% in single day, InSpectrum predicted.