September 14, 2005

China calcium phosphate prices generally lower; continued price weakness seen in near term

An eFeedLink exclusive report
 

Calcium phosphate trade in China was generally stable in recent days. In consumption regions, demand for calcium phosphate in the feed industry picked up somewhat recently. Thus, the price falls in those regions was generally limited.

At producing regions, ex-factory offer prices of calcium phosphate from first grade quality producers such as China's Zhengda Shiye company, Guizhou province, and Lomon Corporation, Sichuan province, registered between RMB1,780/tonne and RMB1,800/tonne in recent days. Ex-factory offer prices of calcium phosphate from second grade quality producers such as Sichuan's "Mianzhu" and "Jiannan" brands were generally in the range of RMB1,720-1,750/tonne. Meanwhile, offer prices of some other lesser known producers hovered at RMB1,700/tonne, down by about RMB20/tonne from the previous week.

In consumption regions, transacted prices for north-eastern China's first and second grade quality brands of calcium phosphate averaged RMB2,120/tonne and RMB2,080/tonne respectively, generally unchanged from the previous week. (Those sold at Liaoning province were slightly cheaper, while those at Heilongjiang province were slightly more expensive due to high transportation costs.)  As different brands were available in northern China with purchase prices varying according to quantity, transacted prices there hovered between RMB1,960/tonne and RMB2,050/tonne. Meanwhile, transacted prices in eastern and southern Chinese regions averaged RMB1,960-2,070/tonne. Transacted prices in north-western Chinese regions were in the range of RMB1,920-1,980/tonne, generally down by RMB10/tonne from the previous week.

Concluding, the limited fall in China's calcium phosphate prices recently, was due to a slight pick up in calcium phosphate demand for the feed industry in consumption regions. With the weather getting cooler this season, analysts expected feed demand for calcium phosphate to dampen and calcium phosphate prices to continue weakening in the near term.

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