The Ebb and Flow of the Storage Spot Market

In the world of storage, the past week has witnessed a series of notable developments in the spot market. The prices of SSDs and memory modules in the spot channels have taken a downward turn, painting a complex picture of the industry's current state.

A Downward Drift in Prices This week, across the board, the prices of SSDs and memory modules in the channel market have been on a decline. Some downstream storage manufacturers, in a bid to boost their performance figures, have resorted to price cuts to drive sales. However, with demand shrinking significantly, their efforts have met with limited success. The industry market, although relatively more stable, is grappling with high resource costs, which has led to a subdued willingness among manufacturers to stock up. In the embedded market, while there have been sporadic inquiries, actual transactions have been few and far between, all waiting for the official prices from the original manufacturers.

The demand side has remained lackluster. Channel manufacturers are accelerating the pace of shipments, but the room for price negotiation has become extremely narrow. The storage spot market continues to be in a state of consolidation at the bottom. This week, prices in the storage spot market have lingered within the bottom range. On the demand side, the situation remains dismal. In the trading sector, some original manufacturers have been hastening to sell their finished products to achieve cash flow realization. However, due to the low price levels and limited bargaining power, this has not triggered excessive market fluctuations. There have been some inquiry activities on the demand side, but actual transactions have been rather mediocre.

Beyond the Panic Selling Phase The storage spot market has recently emerged from the panic selling phase. This week, storage prices have remained basically flat, without any sharp drops. The bottom line of resources in the trading sector is gradually becoming clear. The demand side has become more active in making inquiries. Nevertheless, the market as a whole still adheres to the principle of restocking as needed, and the subsequent development of both supply and demand sides remains to be seen.

The Slide of DDR Resources Currently, the spot market is mainly in a wait-and-see mode. On the demand side, only small-scale restocking is carried out as required. Recently, the prices of Flash Wafer, DDR resources, and memory module channels in the spot market have all been on the decline. The prices of spot DDR resources have generally dropped this week, and with weak demand, a short-term rebound seems highly unlikely.

Divergent Paths within the Industry The upstream and downstream of the storage industry have taken different paths. In the second quarter, the market faced significant order cuts from some PC brands, resulting in poor actual pickup conditions for PC terminals. At the beginning of June, the weakness of the storage spot market persisted. This week, the prices of SSDs and memory in the spot market have been comprehensively reduced once again. Due to the imbalance between supply and demand in the spot market, the prices of channel memory modules have rapidly dropped back to the levels of last September.

The market for storage spot DRAM has declined, with the prices of some PCIe 4.0 SSDs in the channel leading the way down. Due to the price slashing of some PCIe 4.0 SSDs in the channel, the decline rate of PCIe 4.0 SSDs in the storage spot market channel this month is higher than that of SATA and PCIe 3.0 SSDs. According to CFM Flash Market data, in May, the prices of 512GB/1TB PCIe 4.0 SSDs in the channel dropped by 9.6% and 7.6% respectively, reaching $33/52. In the recent period, the prices of channel memory...

The Struggles of the Consumer Storage Market As the second quarter is well underway, the demand for consumer storage has continued to cool down. On the demand side of SSDs and memory in the spot market, there is a strong atmosphere of order cuts and price negotiation. The actual transaction follow-up has been extremely difficult, and there has been fierce price slashing for some individual products, intensifying the phenomenon of price cuts and sales in the storage spot market.

Intensified Competition and Weak Transactions Even though the original manufacturers are still actively stabilizing prices, considering the poor consumer demand and the inventory backlogs in the channels and some brands, the competition to sell at competitive prices in the spot market has become more intense. This week, the prices of some SSDs in the channels and the industry have been slightly reduced.

The storage spot market has been in a continuous tug-of-war. With the intensification of channel competition, prices have been experiencing a slow decline. Recently, due to the mediocre actual demand from consumer terminals, downstream storage manufacturers generally dare not rashly follow price increases. The short-term pressure to realize cash has led to increased market competition. This week, the prices in the spot channels have been slightly adjusted downward, while the prices in the industry and embedded sectors have remained the same.

A Stagnant Market with Weak Consumer Demand In the second quarter, although the prices of original storage manufacturers have continued to rise on a quarterly basis, with the significantly slower demand for consumer terminal inventory, the overall trading volume in the storage spot market has shrunk remarkably. The storage spot market is in a stage of high-level consolidation. This week, the prices of storage spot products have remained completely flat, and we continue to closely observe the changes in market inventory demand.

Looking ahead, the future of the storage spot market remains uncertain. The complex interplay between supply and demand, along with the strategies of manufacturers and the responses of the market, will determine the direction of price movements. The industry is at a crossroads, where it must navigate through the challenges of weak demand, high costs, and intense competition. Whether it can find a way to break through this stalemate and achieve a more balanced and prosperous state remains to be seen. As market participants continue to adapt and strategize, the story of the storage spot market will undoubtedly unfold with more twists and turns in the days to come. The continuous evolution of technology, changes in consumer preferences, and global economic trends will all play crucial roles in shaping the future landscape of this dynamic market. It is a waiting game, filled with both opportunities and risks, as everyone in the industry keeps a close eye on the ever-changing market signals, hoping to make the right moves at the right time.