November 4, 2004

Feedmillers' Phytase Substitute Drive Prices of China's Local Calcium Phosphate Lower

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After hovering at high levels for several months since July this year, prices of locally produced calcium phosphate in China have fallen by an average RMB100/ton in early November. 

Analysts say the recent downslide in prices are mainly due to the fact that with prices having soared by almost 85% up to October versus prices of RMB1,200-1,300/ton in March, some feed millers begin to seek phytase as a substitute for calcium phosphate in feed production. Additionally, the tight market supply situation has improved somewhat in recent period.

As at November 4, market prices of feed-grade calcium phosphate in east China regions hover at RMB2,100/ton, while those in north China and the northeastern regions average at RMB2,200/ton, down by RMB100/ton from early October.

Ex-factory prices issued by some major producers are in the range of RMB1,700-1,900/ton.

Analysts expect prices of calcium phosphate in China to remain mostly stable for some time. They do not see any sharp rise or drastic fall in prices in the near term.