Prices are steady
Staff -- Purchasing, 4/18/2002 2:00:00 AM
Most buyers report prices have bottomed out for the moment for most electronic components although tags for certain products such as DRAM are volatile.
Purchasers responding to PURCHASING Magazine's monthly Business Survey report prices are generally steady. About 62% said tags in March were the same as February.
However, analysts and manufacturers say prices for 128 Mb SDRAMS and DDR DRAMS on the spot market decreased. That could impact future contract pricing if the declines continue over the next 30 days. Memory manufacturers were buoyed by an increase in DRAM tags that started in December and continued into first quarter. But computer sales are usually weak in the first half and there is still a lot of capacity for certain types of DRAMS .
Buyers can expect more pricing volatility with DRAMS although tags should firm in the second half as demand increases.
Demand for most components should rise, especially over the next 90 days. About 36% of survey respondents say they expect to increase their orders over the next 30 days. Over the next 90 days, 49% say their orders will rise. An increase in demand should impact prices as many suppliers have cut back on production and will be slow to increase capacity until they are sure rising demand is for real.
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