March 10, 2017
China Feed Lysine leads fall in February feed additives market
An eFeedLink Exclusive
Feed additives prices registered limited movements as feed production fell to annual low levels.
Feed production shrank almost 10% over the month, curtailing the sales of feed additives. Most products fell marginally in prices, except for lysine, which registered double digit declines.
Demand for vitamin products was slack while feed production dropped to annually low levels. However, as most feed additives tightened output as well, prices of vitamin products were mostly moving sideward.
Even for vitamin E, which was the worst performer for the consecutive third month, price falls were limited to less than 9%.
Meanwhile, prices of vitamin B2 and calcium pantothenate dipped 6% each over the month. As the capacity of vitamin B2 industry expanded due to completion of new facilities, producers held prices low in attempts to retain clients. Calcium pantothenate buyers were not keen to stockpile inventories as new facilities of a producer has entered trial production stage, which meant that supplies are poised to increase in the coming period.
With export demand soft and domestic buyers keeping inventories minimal, prices of vitamin A fell 5% during February.
Prices of vitamin B6, vitamin D3 and folic acid dropped 3% or less in February.
Only niacin and choline chloride prices strengthened during February, up by 9% and 3% respectively, due to scarce availability of raw ingredients.
Demand for lysine was poor after Chinese New Year holidays. As corn costs slid, lysine manufacturers slashed prices while inventories mounted amid flat export demand. On average, prices of domestic lysine were down by 16-18% in February.
Threonine and tryptophan producers cut prices by 7% and 6% respectively in attempts to entice buyers.
As methionine prices have plunged nearly a quarter over the past one year, Limiting the price falls. Prices slid 5%, breaking new lows nevertheless, by end of the month.
Calcium phosphate prices dipped another 3% with the poultry feed output falling and the population of piglet on decline.
Due to stricter pollution controls in Hunan and Guangxi, supply tightness lifted the prices of zinc sulphate and zinc oxide by 6% and 7% respectively.
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