November 25, 2005

China calcium pantothenate prices on uptrend; more gains seen

An eFeedlink exclusive report

Calcium pantothenate prices in China continued their uptrend lately. This was due to significant upward price adjustments by the world's largest calcium pantothenate producer, Zhejiang Xinfu Biochemical Co. Ltd., in early November.
 

Zhejiang Xinfu's performance has not been satisfactory in recent years due to the surge in oil prices and intense market competition. However, 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.

In September this year, Zhejiang Xinfu raised its ex-factory price to RMB65/kg from the original level of RMB61/kg. It announced a further upward adjustment to its ex-factory price in early November, to the level of RMB71/kg. This consequently fueled bullish sentiments in China's calcium pantothenate market, resulting in a surge in transacted prices lately. However, some deals were transacted at the level of RMB70/kg or lower, as traders in some regions still had some build up in inventories.

With the previous build up in inventories in some regions easing somewhat, calcium pantothenate prices in China are generally expected to rise to the level of RMB70/kg or higher in the near term.

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