Choline Chloride in China
Forum: Choline Chloride market in China
As per the request of clients, we associated with some big names in poultry industry to study the Choline Chloride market in China and would like to reason as followings for your reference:
The decline of global economy and market led to the sharply falling of the price of raw materials. The downturn comes into economy in worldwide to make the market weak, this situation have been effecting the price of basic raw material down sharply, as the key raw materials of Choline Chloride, the market of Ethylene Oxide and Thrimethylemine stayed in upheaval and the prices kept on decreasing. Its market also changed accordingly to be keep on ping down as well. The biggest ping was over RMB 1700/mt within a day, which made the Choline Chloride production cost decrease by us$45/mt accordingly. Besides, the four key producers of Ethylene Oxide enlarged the production capacity by 50 after their expanding and reconstruction one by one, Supply exceeds demand broke the structure of increasing price caused by monopoly supply. The slump of methanol in international market urged the decreasing of cost of TMA the price of TMA began to decreasing by the market stress. We may conclude that the producing cost of Choline Chloride will fall down further and be back to the level of 5 years ago.
The key producers of Choline Chloride are in serious tribulation, the goods produced by costly raw material are piled up in warehouse. The consumers are not interested in purchasing by cost or even discounted price because they are lack of trust to the market. Thus, they are definitely not able to be free from the great loss. Moreover, to against the danger of the collapse of capital chain, producers have no choice but to dump the goods to get the money back. These make the Choline Chloride market become more and more complicated.
China feed industry, with small domestic demand at present, is going to be worse influenced by the Melamine issue. Here comes the winter season to the market of raw materials of feed.
To improve the growth of the economy, PBOC expressed that the devaluation on the RMB looms. This will decrease the price of Choline Chloride more.
Hence, the Choline Chloride market in China will have a radically change, the price might go stably from the second quarter of next year. But doubtlessly, the price of Chinese Choline Chloride will become absolutely competitive.
Above our views are only for your own reference, transrecordation or copy is not allowed.
Be-Long Corporation
Good article about Choline Chloride in China.
With the current economic downward slide, there is a tremendous pressure built on middle class of the world thus hampering their buying power. This is the reason that due to decrease in sales, most of the products are available below cost thus manufacturers are in trouble, mostly closing their operations. The low prices of raw material will result in lower production cost and it will make the manufacturers to continue their operations. So it is blessing in disguise that lower prices of raw material will help poultry industry to sustain their production cycle all over the world.
