DRAM prices are continuing to fall, despite a belief that they must soon bottom out.

According to a report from DRAMeXchange, the spot market price for DRAM continued its downward spiral.

The price of DDR2 512Mb 667MHz dropped 4.3 per cent to USD 2.21, while the DDR2 512Mb 667MHz eTT declined more than 6 per cent, slipping past the USD 2 mark to USD 1.8~1.9.

Most of the Chinese market is on holiday this week and this could be responsible, but analysts say that it remains to be seen whether it can spur more market demand.

None of the major companies are building up their inventorys and there is no evident demand appearing in May, contract prices are projected to drop further.