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European Vitamin E 50 firmer as supply tightens from China
Vitamin E 50 feedgrade prices in Europe continue to move higher as fresh reports
of interruptions to shipments from China drive the market price towards EUR
4.00 kg.
Although the majority of European customers say they have sufficient contracts
in place for the remainder of Q4, forward coverage for Q1 and Q2 is understood
to be very limited and restricted to no more than 20 % of projected
requirements for the European market.
Delays in shipments from China combined with rumors of production problems
linked to the availability of key raw materials has prompted end users in
Europe to attempt to secure additional volumes for Q1 , 2005.
Recent hikes in energy and oil related raw materials have continued to put
significant upward pressure on production costs in China. Intense competition
in the European market in recent months has forced end user prices of Vitamin E
50 feedgrade to fall to historically low levels. However local prices in China
and Asia have remained at higher levels than Europe and are now discouraging
exports from China to Europe.
Current quotations in Europe for Western origin are now in a range EUR 3.60 kg -
EUR 3.80 kg with restricted availability for Q4.
According to premixers in Europe, at least one Western producer is 'sold out'
for the remainder of 2004 and are unwilling to offer early 2005 at this stage.
Customers say offers for Chinese origin have practically disappeared from the
market as sellers pause before committing to further volumes.
Prices quoted are on a delivered customer duty paid basis unless otherwise
stated.
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