March 8, 2004

China's Vitamin C Prices Continue To Fall (March 8, 2004)
 

An eFeedLink Exclusive Report
 

Of late, prices of vitamin C (over 98% contents) in China fell slightly compared to previous week's prices. Current quotations for vitamin C issued by major Chinese pharmaceutical producers generally range between RMB72-85/kg, registering a fall of about RMB3/kg versus previous week's prices. The general transacted prices for large orders hover at around RMB72/kg, in the absence of brisk transaction activity.

This is the lull season in the demand for vitamin C in the Chinese market. Most of the Chinese end users still have sufficient inventories, so that they are not in a hurry to increase inventory. Their 'wait and see' attitude hence exert pressure on China's vitamin C prices to drop further in recent days.                                          

Currently, vitamin C (over 98% contents) in the Guangdong region is generally quoted at around RMB85/kg and transacted at about RMB80/kg, staying stable versus previous week's prices. In the Shanghai region, vitamin C (99% contents) is quoted at RMB75/kg, with bulk procurement transacted at between RMB70-75/kg, and actual transacted prices falling by RMB0-5/kg.

In the Jiangsu region, vitamin C (99% contents) is generally quoted at RMB90/kg and transacted at between RMB70-75/kg, which is similar to previous week's, while actual transacted prices had fallen by about RMB0-5/kg.

In Hebei region, ex-warehouse prices of vitamin C (99% contents) range between RMB72-75/kg, while the general transacted prices hover around RMB72/kg. As for bulk purchases, the general transacted prices fell by RMB3/kg to the levels slightly below RMB72/kg.

In addition, phosphate vitamin C (35% contents) in China is generally quoted at RMB52/kg, and transacted at around RMB52/kg, which is a fall of about RMB1/kg. Locally produced coated vitamin C (approx. 97% contents) is generally quoted at between RMB80-90/kg, and transacted at close to RMB80/kg, registering a fall of about RMB5/kg.

Imported coated vitamin C (98% contents) is quoted at around RMB105/kg and mostly transacted at RMB103/kg. Imported stable vitamin C (35% contents) is quoted at around RMB85/kg, and transacted at close to RMB82/kg, which remains unchanged from the previous week. These are all processed products of vitamin C; they are able to withstand high temperatures, and can be processed as ingredients in animal feed. These products are also widely used in aqua feed production. 

With the impending peak season for aquaculture production arriving as the weather turns increasingly warm, demand for vitamin C in China will gradually increase, with prospects of a further price rise.

China is the world's largest vitamin C producer and exporter. Vitamin C (approx. 97% contents) products of the various major pharmaceutical producers are exported to the US, Europe, and Southeast Asia. Quotations for China's locally produced vitamin C exports to the US are relatively lower at about US$8.78/kg, while exports to other countries are generally quoted at around US$9/kg, showing a fall of US$0.2-0.5/kg from the previous week. Current dismal market demand leads to the fall in prices of China's locally produced vitamin C.