December 10, 2004

Prices of China's Locally Produced Vitamin B2 Rose Steadily Of Late on Good Export Demand and Tight Supply

An eFeedLink Exclusive Report 
  

Prices of vitamin B2 in China have risen steadily in recent days on good export demand and tight market supply. Due to the different production technologies employed, there is a wide gap between offer prices issued by local producers.

As at December 10, ex-factory offer prices of locally produced fermented vitamin B2 (80%) are at the level of RMB130/kg, up RMB5.0/kg from previous period. Ex-factory offer prices for synthesis vitamin B2 continue to stay firm at RMB145/kg.

Market participants reveal that the supply of vitamin B2 in the Chinese markets is relatively tight recently. Some traders have very limited stocks on hand, and raise their offer prices. Prices quoted by traders for locally produced vitamin B2 (80%) produced by Guangji Pharm generally hover at RMB140/kg, while those of vitamin B2 (80%) by Desano (another local Chinese producer) are at the level of RMB145/kg, the latter price being close to the market prices of imported vitamin B2.

With high raw material prices and good market demand from the livestock industry, analysts expect prices of vitamin B2 in China to remain firm in the near term.