December 17, 2004

 

 

Prices of Calcium Phosphate in China Marginally Higher Recently on Feed Millers' Increased Buying               

 

An eFeedLink Exclusive Report

 

Prices of calcium phosphate in China were generally stable recently. Feed millers' increased buying and tight supply created by transportation problems pushed prices marginally higher in some regions.

 

As at December 17, ex-factory prices of locally produced calcium phosphate issued by Sichuan Longmang Mineral Feed Co hover at RMB1,600/ton, while those of Sichuan Chuanheng Chemical Co are at the level of RMB1,520/ton.

 

Meanwhile, ex-factory prices issued by other local producers mostly range between   RMB1,480-1,550/ton, up RMB50-100/ton compared with prices in past week.

 

Analysts attributed the recent marginal price gains to the following factors:

    • Some feed millers who chose to stay on the sidelines have started stepping up their procurement of calcium phosphate as they felt that the current price level was reasonable;

    • Feed milers, who previously used phytase as a substitute for calcium phosphate due to high prices, have resumed buying in large volume of calcium phosphate recently as they worried prices would go up further;

    • Tight rail transportation with the approach of New Year's Day and the Spring Festival has also lent support to prices of calcium phosphate. 

According to industry insiders, while some producers have put a cap on their sales, Sichuan Longmang Mineral Feed Co has temporarily stopped accepting orders as the producer is still fulfilling sales contracts concluded earlier.   

 

In view of good market demand and high raw material costs, analysts expect prices of calcium phosphate in China to rise further in the near term.