September 19, 2005

Prices of locally produced vitamin D3 in China generally weak amid sluggish trade

An eFeedLink exclusive report  

Prices of vitamin D3 in China remained weak in recent days. Recent market prices were as follows:

The fall in prices of locally produced vitamin D3 was more significant. Recent offer prices by companies such as Huayuan company, Zhejiang province, and Xiamen Kingdomway Vitamin Inc., were in the range of RMB67-69/kg. Transacted prices were generally between RMB66/kg and RMB68/kg, even reaching as low as about RMB64/kg for individual large quantity buyers. Prices of some locally produced vitamin D3, of second grade quality,  were less than RMB60/kg.

Meanwhile, the fall in prices of imported vitamin D3 was generally less significant. Recent market prices of products from Solvay and DSM were in the range of RMB88-90/kg and RMB112-114/kg respectively. Transacted prices by BASF were between RMB98/kg and RMB100/kg. Some industry players felt that the relatively high prices of vitamin D3 by DSM have recently limited its market share to some degree.  

Following a significant rise in offer prices of locally produced vitamin D3 in late 2004 and early 2005, their acceptance has remained generally sluggish. The effect of this could still be seen from the continued weakness in prices of locally produced vitamin D3 recently.

Concluding, domestic producers such as Zhejiang's Huayuan company have increased their production capacity of vitamin D3 of late. Thus, analysts expected competition in China's vitamin D3 market to remain intense and prices to remain weak in the near term.

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