January 2, 2013
Sulphate feed additives markets firm in China
Cupric sulphate
Demand for cupric sulphate remained weak while production costs lowered towards late December amid falling copper futures prices. These factors worked to hold cupric sulphate prices unchanged.
With hog inventories expected to be decimated by higher winter disease rates, lacklustre demand for cupric sulphate will exert pressure on the market.
Zinc sulphate
Producers of zinc sulphate who were eager to move sales as inventories accumulated negotiated prices in a bid to attract buyers.
Towards mid-January, demand is expected to improve while feed millers stockpile inventories before Chinese New Year holidays. Nonetheless, low ingredients costs, together with bloating producers' inventories, will work to limit the upward potential of the market.
Manganese sulphate
Prices of manganese sulphate were stable amid improved demand. Moreover, as the demand for China's manganese ore strengthened after the government removed export tariffs, producers of manganese sulphate were more cautious in giving discounts amid concerns that the supplies of raw ingredients might tighten.
Prices of manganese sulphate are seen stable to higher with producers standing firm.
Ferrous sulphate
Ferrous sulphate prices increased significantly due to the reduction in output amid tightening supplies of titanium dioxide.
The supply crunch of ferrous sulphate is expected to drive up prices in the coming period.
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