November 4, 2005

Weak live hog prices in China weigh on locally produced calcium phosphate

An eFeedLink exclusive report

Calcium phosphate trade in China was generally light in recent days. Consequently, prices in most regions fell by RMB40-50/tonne from mid-October levels.

Analysts attributed the weak calcium phosphate market situation of late mainly to the following: 

• Recently, the weak live hog market situation and bird flu outbreaks in some regions have dampened calcium phosphate consumption for feed, causing significant inventory build up of some producers and traders. 
    
• Rapid development of China's phytase market has replaced calcium phosphate demand to some degree, especially over the past year. This further weighed on already weak calcium phosphate prices lately. 
   
• Weak sulphuric acid prices recently have slightly lowered production costs of calcium phosphate. 

Analysts did not expect calcium phosphate prices in China to improve before mid-November due to recent weak consumption. However, prices were seen to stabilise in the later part of November with an expected improvement in market fundamentals. 

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