CCM: Upward VE market price in H1 2016 in China 07-29-2016

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

 



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag: vitamin  VE


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