July 1, 2013
Low output costs, poor demand keep China sulphate additives prices weak
Cupric sulphate
Copper futures prices were soft during the period in review, particularly towards end of June when US Federal Reserve announced that the government's bond procurement programme might be reviewed soon. Hence, low raw ingredients costs together with cautious buying kept cupric sulphate prices soft.
As of June 27, price quotes of cupric sulphate stayed flat in the range of RMB14,300-14,500/tonne ex-factory.
With production costs unlikely to rise, and demand for feed improving slowly, cupric sulphate prices are expected to be stable or lower.
Zinc sulphate
Zinc sulphate demand was only about half that of last year over the past few weeks. With zinc prices dipping significantly during late June, producers readily cut prices in a bid to entice buyers.
With supplies stable, output costs likely to move lower and demand slack, zinc sulphate prices will likely stay low in the coming period. Other factors that will weigh on zinc sulphate prices are China's gloomy economic outlook and the tightening of credit control.
Manganese sulphate
Manganese sulphate prices picked up during late June, as poultry inventories expanded steadily.
After the recent round of procurement, feed millers are likely to withhold buying in the coming weeks, especially as the economic prospects of China looks bleak.
Ferrous sulphate
Ample supplies held ferrous sulphate prices weak in conjunction with lacklustre demand.
Producers are expected to keep ferrous sulphate down while demand remains slack.
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