September 28, 2005

China calcium pantothenate prices rise significantly; continued firmness seen in October

An eFeedlink exclusive report

Although calcium pantothenate trade in China was regular in recent days, transacted prices rose significantly over that of the preceding week in most regions.

Producers, including major local producer, Zhejiang Xinfu Biochemical Co. Ltd., faced dismal profit margins following the recent surge in international crude oil prices and amid intense market competition.

Since Zhejiang Xinfu acquired Huzhou Lion King Fine Chemicals Co. Ltd. early this year, it has gained market leverage and is in a position to raise prices.

Zhejiang Xinfu has raised its ex-factory prices three times in September. Its recent ex-factory price was raised to RMB65/kg from the original level of RMB61/kg.

China's calcium pantothenate exports were reportedly more active in recent days, thus strengthening the confidence of producers in raising their prices. 

Meanwhile, some traders and feed millers in China fearing that calcium pantothenate prices might rise further, stepped up purchases recently although prices were already higher. 

Concluding, analysts expected calcium pantothenate prices in China to remain firm or even edge higher in October. However, demand may weaken in November after the buying activity of feed millers in October.