 Canton Fair to affect NAND flash price?
We also observe how the 2GB is starting to move into the lead position of best price/capacity ratio and thereby is reaching the height of its product cycle. With the 1GB being priced in close range to the 512MB and 256MB capacities while the 4GB USB flash memory sells on a much higher ratio we can expect the 2GB to soon gain status of best selling high-capacity while the price difference between 1GB USB memory flash and the lower capacities will further diverge.
Before prices for USB flash memory are going to stabilize prior to this years Christmas sales one more upcoming event might very well push up to prices: the coming Canton Fair in Guangzhou kicking in from Oct. 15th – 20th 2007.
With more than 200.000 visitors and 15.000 exhibitors expected this is the largest trade fair in China and of great importance to all China-related import export businesses.
Obviously Chinese exporters are collectively trying to help each other ensure a price level that is slightly higher then normal during this period: they prefer to enter with a generally higher starting price during this exhibition in middle of October and then perform price-decreases in the following months before Christmas.
Having come all the way from countries abroad, the foreign buyers visiting the exhibitions will be trying to get as many reference quotations from different suppliers as possible. During some short but very intense and action-driven days of marathon-meetings with myriads of potential Chinese suppliers and manufacturers attending this Canton Fair you usually end up quite stressed-out but with your pockets and bags full of business-cards and catalogs – and with a fair amount of new business relationships and maybe a couple of running trial orders as well your old orders: Many traders visit the exhibition at least once a year and use it to also meet old friends and strengthen existing business relationships with Chinese manufacturers and suppliers.
After a few days of sorting out all the information and possibly also of returning home just after this exhibition these same buyers will go through all collected information and start systematically to contact their freshly sourced China suppliers and manufacturers.
During the last few years we have observed that prior to this exhibition the general price level of various products tend to go up slightly among wholesale traders and b2c businesses. This year, especially following the growing pressure on the Chinese currency, manufacturers and suppliers are quite likely to open their most important trade fair with slightly higher prices as to leave a little more margin for the foreign buyers to chew upon after their returning to their homelands.
We at MemoTrek expect increasing prices as the spot market price for USB flash memory is likely to gain a little and return to the level it was beginning of September during beginning of next week. After the Canton Fair is over the price will cool down slowly but keep a steady level before Christmas as demand from the downstream markets is growing and the Xmas-rush reaches is peak.
Customers wishing to meet or visit us in connection with the Canton Fair should please not hesitate to contact us directly. We are present throughout the fair and are happy to meet up for a chat!
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