21 September 2017 – Most recent price trends in the European market for various Feed Additives (Chinese, Indian and Western origin).
Vitamin A 1000
A remarkable range of prices have been quoted and transacted recently in the European market. The main reason for such price discrepancy is that some Chinese suppliers have been unwilling to offer at levels which were competitive for the European market due to uncertainty regarding the timeframe concerning their return to normal Vitamin A production.
In China, inspections relating to environmental topics together with upgrades of certain facilities, have resulted in lower than normal output of Vitamin A in recent weeks. Also, in Europe output has been reduced due to maintenance shutdowns. Furthermore, additional stress has been encountered in Europe as the market struggles with the ramifications of new EU legislation which will affect the use of antioxidants used in Vitamin A formulations.
In recent weeks the European spot market continued to tighten as importers of Chinese origin bought volumes back from the market in a bid to offset shipment delays from China.
As a consequence of the above, those European premixers who traditionally bought significant volumes from certain Chinese suppliers were exposed to quotations which exceeded EUR 65.00 kg – EUR 77.00 kg. Very large end users who were faced with no option other than buying from the resale market, transacted at levels which were substantially higher than their competitors who secured traditional Q4 contract volumes from their regular Western suppliers. In the latter case, Q4 contracts were concluded in a range EUR 42.00 Kg – EUR 45.00 kg (a portion of the market was already contracted weeks ago based on transactions for Western origin at EUR 26.00 kg – EUR 32.00 kg).
Opportunities for Western origin at EUR 45.00 kg and below have now disappeared from the market as producers adjust quotations higher in line with high Q4 2017 coverage. In fact European premixers say the market for Western origin is now minimum EUR 50.00 kg for complimentary volumes for delivery during Q4 2017. However, premixers who normally purchase exclusively Western origin are already practically fully covered for Q4 2017. Q1 2018 is almost completely uncovered in Europe.
Vitamin E 50
Nearby tight, forward a shade weaker. The majority of end users in Europe are covered for several weeks, with many contracted through to at least end Q4 2017. Quotations for nearby are generally around EUR 4.30 kg – EUR 4.55 kg, reflecting some slight tightness in the prompt market.
Forward offers into early 2018 are slightly bearish at generally EUR 4.25 kg – EUR 4.30 kg although a few isolated cases of Chinese origin reported at closer to EUR 4.10 kg – EUR 4.20 kg.
D Calcium Pantothenate
The European spot market appears to have stabilized in a range around EUR 78.00 kg – EUR 85.00 kg. Some end users perceive a slightly softer tone to the forward market based on recent offers at around EUR 75.00 kg.
Vitamin D3 500
Recent price increase announcements of USD 75.00 kg etc have yet to be tested given that most European premixers still have cover in place for several weeks. Some resale transactions for small volumes reported at EUR 50.00 kg – EUR 55.00 kg.
The European market is extremely well covered for the coming weeks. Substantial volumes of pure Biotin were transacted in recent weeks at levels which would equate to around EUR 12.00 kg – EUR 15.00 kg for Biotin 2%, based on standard carrier. Replacement prices based on fresh quotations from China are minimum EUR 22.00 kg – EUR 24.00 kg for Biotin 2%. No transactions reported at these higher levels due to the long term coverage already in place.
Indian origin is reported as slightly weaker based on recent offers for late Q4 / early Q1 2018 at EUR 6.00 kg – EUR 6.40 kg. Chinese suppliers continue to report a bullish tone due to potential tightness in supply of key raw materials.
Western origin is closer to EUR 7.00 kg – EUR 7.20 kg.
The market appears to have stabilized based on latest quotations of around EUR 72.00 kg – EUR 78.00 kg.
The market remains extremely tight and uncertain. Recently, forward quotations moved up to EUR 70.00 kg – EUR 75.00 kg with isolated cases up to EUR 78.00 kg. Surprisingly, a minor incident at one of the smaller Vitamin B6 producers appears to have added considerable tension to the spot market where quotations have suddenly jumped up to minimum EUR 80.00 kg.
Tight supply for nearby in a context where reseller stocks are low is putting further upward price pressure on the European spot market. Ongoing supply issues reportedly affecting the major Western producers.
Premixers say previous opportunities for Western origin at EUR 29.00 kg – EUR 30.00 kg have now disappeared from the market. Latest quotations for multi tonne prompt deliveries are minimum EUR 32.50 kg – EUR 34.00 kg.
Forward offers from China are considerably higher than these levels.
The European spot price moved up considerably during the summer period in reaction to producer price increase announcements and less aggressive sales behavior by some non-Western producers. Robust nearby demand in China also influenced the price trend in Europe. Concerns that US based Methionine production might encounter storm related disruptions also contributed to the recent bullish tone.
Resellers in Europe have been offering restricted volumes for spot deliveries at around EUR 2.55 kg – EUR 2.65 kg – a considerable premium over Q3 / Q4 2017 contract prices. Producers continue to indicate target prices of around EUR 2.65 kg – EUR 2.70 kg for Q1 2018 contracts. However, Q1 coverage is still low and some larger end users say they have opportunities at around EUR 2.60 kg from at least one Western producer.
A growing number of end users in Europe say they believe the market has now stabilized and anticipate booking Q1 2018 contracts at levels which will be below the current resale / spot price.
In Europe, Western producers are now indicating higher target prices in the direction of EUR 1.35 kg. However, some suppliers continue to offer Q4 / early Q1 volumes at around EUR 1.28 kg – EUR 1.32 kg.
Most of Q4 2017 is well covered in Europe but early 2018 has low coverage. Competitive offers for Chinese origin remain absent from the market.
The dominant Chinese producer has taken a very firm stance in recent weeks. Their latest quotations to the European market equate to end user prices of EUR 2.00 kg – EUR 2.10 kg basis DDP. No transactions reported at these levels as the market is generally well covered at levels which are considerably below these price indications.
Some nearby demand has been generated by shipment delays ex China. Resellers of Chinese origin for prompt delivery are indicating minimum EUR 1.65 kg – EUR 1.75 kg. Actual forward offers by resellers for H1 2018 deliveries from China are at minimum EUR 1.75 kg – EUR 1.90 kg. ddp. This price range is based on a combination of older positions blended with new replacement prices.
Practically all of Q4 and some of Q1 2018 is covered in NW Europe.
Spot prices in Europe continue to firm in reaction to extremely tight supply for nearby. The resale market is trading at minimum EUR 12.50 kg – EUR 15.00 kg.
Currently offers from China to Europe are practically non-existent due to shutdowns linked to maintenance and inspections. In Europe, Western producers are indicating ‘sold out’ for Q4 2017. Isolated cases of one producer prepared to offer at minimum EUR 11.00 kg – EUR 12.00 kg for strictly limited volumes for regular customers.
Spot prices in Europe are EUR 5.50 kg – EUR 5.80 kg. Very large end users report opportunities from at least one producer at around EUR 5.40 kg – EUR 5.45 kg.
Republication or redistribution of any of our content, including by framing or similar means, is expressly prohibited without the prior written consent of Feedinfo News Service.
Prices quoted are on a delivered customer duty paid basis unless otherwise stated.
Whilst Feedinfo News Service strives to give a wholly objective view of the market, this report is intended solely as a guide to the latest trends throughout the industry. Feedinfo News Service provides a neutral analysis of market developments, unhindered and independent of the interests of individual ingredient producers, premixers and compound feed manufacturers.
It is the responsibility of each individual user to verify and confirm all information included therein. Decisions based on information contained in this service are the sole responsibility of the user.
Users understand and acknowledge that the prices and quotations published by Feedinfo News Service are purely indicative and do not constitute a recommendation to buy or sell any commodity or to engage in any transaction in any jurisdiction. Users agree that they will use this information for educational purposes only. This information is not intended to be used as the basis for contractual commercial agreements and is also not intended for use as evidence in contractual conflicts.
Prices quoted are on a delivered customer duty paid basis unless otherwise stated.
Mentioned prices do not reflect group discounts, cash or annual rebates.
Reports and quoted prices refer to the North West European market unless otherwise stated.
Delivered prices for Eastern, Northern and Southern European customers may be higher due to additional freight rates.