News

Glonhui March 31｜Citigroup has significantly lowered Micron Technology's target price by 17%, citing a recent notable decline in spot prices of DDR5 DRAM, but has maintained its buy rating and all profit forecasts unchanged, believing the long-term logic of AI-driven storage demand remains fundamentally intact. In a research report released on March 31, Citigroup analyst Malik reduced Micron's target price from $510 to $425, a drop of 17%. As of the market close on March 30, Micron's stock price stood at $321.80, still offering about 32% upside relative to the new target price. According to the report, mainstream DDR5 16GB DRAM spot prices have recently declined about 6%, largely due to market concerns regarding Google's TurboQuant technology. This technology is believed to potentially reduce memory consumption for AI inference, thus sparking market worries about the outlook for storage demand. Micron and its peers have begun negotiations with hyperscale cloud computing vendors on strategic long-term agreements spanning 3 to 5 years. The framework of these agreements includes locking in base procurement volumes, prepayment arrangements, and mechanisms for quarterly price adjustments based on market conditions, which are expected to provide effective support for contract prices.

⑴ Three traders stated that the price of Russian Urals crude oil in Asia has risen, with its premium over Brent crude increasing from $5 per barrel a week ago to about $8 per barrel. This is because supply disruptions in the Gulf region caused by the Iran conflict are prompting Asian buyers to seek alternative supply channels. ⑵ However, Ukrainian drone attacks on Baltic Sea ports are also restricting Russia's own supply. According to traders, about 40% of oil export capacity was forced to shut down last week. As of Monday, the Ust-Luga port, with a daily throughput of 700,000 barrels, remained closed. ⑶ Freight costs hit a new high last week, with Aframax tanker freight rates from Primorsk to India rising to $21–22 million, and rates from Novorossiysk also reaching $20 million. Transport costs are being driven close to historic highs by threats of drone attacks, extended routes, increased insurance premiums, and the seizure of shadow fleet tankers. ⑷ The US has granted a 30-day exemption period, valid until April 11, allowing global buyers to purchase Russian oil to ease supply shortages. However, traders said that even with rising prices, some sellers still cannot guarantee delivery of cargo. Some Russian oil producers have already warned buyers that force majeure might be declared due to attacks on Baltic Sea ports.

Golden Ten Data reported on March 31 that the newly discovered mineral “Xianhua Lan-niobite,” led by the Baogang Group Mine Research Institute, has officially passed the International Mineralogical Association's Commission on New Minerals, Nomenclature and Classification review and certification. This marks the 29th new mineral discovered in the Bayan Obo deposit, adding another “Chinese mark” to the world’s mineralogy treasury. According to reports, Xianhua Lan-niobite is found in the eastern ore and eastern contact zone of the Bayan Obo deposit, and is a rare rare earth–niobate mineral. As a world-class polymetallic deposit, more than 200 types of minerals have been discovered in the Bayan Obo deposit to date.