November 16, 2004

Prices of Calcium Phosphate in China Seen to Fall Further

An eFeedLink Exclusive Report 
 
Prices of locally produced calcium phosphate in China registered further falls in the past week. Several major producers adjusted offer prices downwards in a bid to stimulate demand. According to a major producer, procurement volume rose marginally with the lower prices.
 
Currently, delivery price of Lomon brand calcium phosphate to Shanghai is about RMB1900/ton; Chuanheng brand is at RMB1800/ton; while prices of Gefeng brand fell by RMB100, to RMB1800/ton. Bulk procurement is secured at a lower price.
 

Analysts expect prices of locally produced calcium phosphate to fall further in the near term as feed millers with sufficient inventory are not expected to make any purchase while buyers with low inventory are anticipating further falls in prices. However, prices are unlikely to reach the low levels of RMB1300/ton seen in previous months due to the sharp rise in the price of raw materials in the second half of 2004.