International memory chip and display panel price have been making solid rebound from July, raising expectations for positive impact on Korea’s mainstream exports.

According to market research firm DRAMeXchange on Wednesday, the average selling price of mainstream DDR 4BG dynamic random access memory (DRAM) chips, which has remained weak since September 2014, gained 7.2 percent to $1.34 from $1.25 in June. The DRAM price that hit $1.72 in December last year slipped to $1.25 in June.

The rebound in chip prices is largely attributed to tight supply as main suppliers have shifted focus to NAND flash used in smartphones, and scaled back DRAM manufacturing due to poor demand in PCs and servers, according to market experts.

Two largest chipmakers Samsung Electronics Co. and SK Hynix Inc. have been concentrating investment in next-generation 3D NAND flash memory.

DRAM prices are likely to keep up upward momentum as supply will likely remain tight, given the faster increase in inventory shipment than output that suggests suppliers are pushing out stock because manufacturing cannot keep up demand.

“A recovery in parts price is a significant indication in the IT sector. The cycle suggests, DRAM prices have bottomed out,” said Hwang Joon-ho, an analyst of Mirae Asset Daewoo Securities.

The price in liquid crystal display (LCD) panels is also rapidly recovering after the LCD industry has suffered an oversupply due to competitive expansion by Chinese panel makers. According to Taiwan-based market research firm WitsView, the price of LCD panels for 32-inch televisions came to $62 as of August 5, up $2 from July 20. The price increased 3.3 percent in 15 days. Compared to $54 as of June 6, the price gained 14.8 percent in two months.

By Song Sung-hoon and Kang Young-woon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]