November 30, 2005

China calcium phosphate prices lower on bird flu concerns and weak hog prices

An eFeedLink exclusive report

Calcium phosphate trade in China was generally light in recent days, while prices in most regions fell by RMB50-100/tonne from mid-November levels.

Prices of calcium phosphate in major production regions including Sichuan and Yunnan have reached historical lows since the start of 2005. Consequently, some calcium phosphate producers were under increasing pressure to maintain operations, as they were unable to cover operating costs. Some have even suspended production and adopted a 'wait-and-see' attitude.

Bearish sentiments in the market have slightly eased, due to expectations that calcium phosphate supplies would decline and any price falls would be limited in the near term. Thus, some feed millers and traders have started making small quantity orders lately.

Bird flu concerns continued to affect confidence in consumption of poultry products in some regions and hog and piglet prices remained weak recently. Thus, calcium phosphate prices in China are seen unlikely to make any significant gains, and would likely remain stable to marginally lower in the near term.

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