China Whey Weekly: Traders slash price amid slack demand (week ended Jan 25, 2015)

January 27, 2015

An eFeedLink Exclusive

Price summary

Prices fell significantly.

Weekly port transaction prices of whey in China
Specification	Port	Price as of Jan 18 (RMB/tonne)	Price as of Jan 25 (RMB/tonne)	Price Changes (RMB/tonne)
Low protein	Shanghai	6,300	6,100	-200
	Tianjin	6,300	6,000	-300
	Chengdu	6,600	6,300	-300
	Guangzhou	6,300	6,000	-300
	Dalian	6,300	6,000	-300
	Beijing	6,500	6,300	-200
	Xiamen	6,300	6,000	-300
High protein	Shanghai	10,500	10,500	0
	Tianjin	10,500	10,500	0
	Chengdu	-	-	-
	Guangzhou	10,500	10,000	-500
	Dalian	10,800	10,500	-300
	Beijing	10,800	10,500	-300
	Xiamen	-	-	-
Prices refer to port transaction prices for bulk purchases in Dalian, Shanghai, Guangzhou, etc, and are for reference only. RMB1=US$0.1599 (Jan 27)

Suppliers' quotes

FOB prices of US feed-grade were in the range of US$770/tonne to US$1,133/tonne. Price quotes were converging as higher ones continued to soften whereas lower ones remained stable.

Market analysis

Even though whey prices in the US remained largely stable, Chinese traders, whose inventories kept increasing, slashed prices lately in a bid to stimulate buying interest.

Nevertheless, as hog prices failed to rebound strongly whereas piglet population stayed low, feed millers withheld purchases of whey.

Market forecast

The upward scope of hog prices will be limited as pork demand remains sluggish. This will continue to exert pressure on the whey market while supplies are abundant.

However, it should be noted that renminbi has depreciated prominently of late, hence lifting the import costs of whey have increased despite stable to lower US whey prices. Traders will therefore be more cautious in cutting prices in the coming period.

Remarks: Prices refer to port transaction prices of low-protein whey and are for reference only.

Remarks: Prices refer to CIF China price quotes (US-Dollar) of low-protein whey and are for reference only.

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