In H1 2016, China's overall vitamin E (VE)
market was in an upturn. According to CCM’s price monitoring, in June, the
market price of VE powder (50% feed grade) rose by 102% over Jan. to
USD12,900/t (RMB85,000/t); meanwhile, that of VE oil (98% food grade) mounted
to USD28,078/t (RMB185,000/t), up 22% over Jan.
Source: Bing
This upward trend was mainly because most
leading VE producers raised their quotations. In early April, Zhejiang NHU Co.,
Ltd. (Zhejiang NHU) raised its ex-works price of feed grade VE by 80% to
USD10.83/kg (RMB72/kg). Jilin Beisha Pharmaceutical Co., Ltd. followed and
quoted at USD10.98/kg (RMB73/kg), and later raised its price again to
USD12.03/kg (RMB80/kg).
At the end of May, Zhejiang NHU raised its VE price
again to USD13.53/kg (RMB90/kg), up 25% over April. Meanwhile, Zhejiang
Medicine Co., Ltd. (Zhejiang Medicine), the largest Chinese VE producer, also
quoted higher in transactions.
Monthly market prices of vitamin E (50% powder feed grade and 98%
oil food grade) in China, Jan. 2015-June 2016
Source: CCM
From June 2014 to Dec. 2015, affected by
China's downward VE market price, many small-scale producers suspended
production or even withdrew from the market under business pressure. So far,
Chongqing Southwest Pharmaceutical Co., Ltd. (former subsidiary of PKU
Healthcare Corp., Ltd.) has continued suspending production. The higher
production concentration and less output are favorable for the rise in VE
market price.
Recently, Zhejiang Medicine and Zhejiang
NHU are reported to plan to suspend production for maintenance. Additionally,
in Sept., the G20 summit will be held in Hangzhou City, Zhejiang Province,
during which the environmental regulations may restrain local VE production.
Therefore, the domestic market price of VE is likely to keep high in H2 2016.
As of May, China exported 27,127 tonnes of
VE in total this year, up 7.47% YoY, but the export value decreased by 8.31%
YoY to USD159.04 million.
This was mainly due to the lower average export price
over the same period last year– analyst CCM speculate that, among the VE
products exported from China, the low concentration ones might take up a larger
proportion during this period. Yet, the monthly average export price kept going
up, thanks to the rising domestic market price.
Additionally, from Jan. to May, altogether
3,786 tonnes of VE were imported to China, with a total import value of
USD34.97 million, both the figures almost unchanged over the same period last
year. Leading import origins included Switzerland, Germany, the US, Japan and
France.
China's exports of vitamin E, Jan. 2015-May
2016
Source: China Customs
This article comes from Vitamins China E-News 1607, CCM
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Tag: vitamin VE