Market Analysis - Monthly Report - August, 2020 - VD3

Review of domestic VD3（FEED GRADE） market in August

In August, domestic factories continued to undergo summer maintenance, which led to a decline in the supply of VD3 500 FEED GRADE, market inquiries and transactions began to be active, the low-priced D3 in the early market was exhausted, and the price rebounded periodically. It is reported that the domestic VD3 500 FEED GRADE prices in August are mainly concentrated at 21.5 USD/KG-26 USD/KG, and the European market quotations are concentrated at 19-20 Euros/KG.

Factory situation:

2. Current market situation of VD3 500 FEED GRADE

After the domestic VD3 500 FEED GRADE price rebounded in August, as of the beginning of September, the domestic transaction volume began to decline. However, due to the impact of the foreign epidemic, the supply of upstream raw materials for VD3 was still slightly tight. At the same time, domestic environmental protection rectification caused some companies such as HISOUND still cannot be started. Therefore, in early September, the domestic VD3 price trend remained strong, and the lowest transaction price in the market was concentrated at 21.5 USD/KG. In addition, some industry rumors, BASF's recent production has quality constraints, and may not be available in the fourth quarter. VD3 has led the domestic vitamin industry to maintain an optimistic trend for the price trend of VD3 in the fourth quarter.

 ECHEMI forecast

As can be seen from the above figure, the average market price of VD3 in July 2020 is about 18USD/KG, although the price of 10USD/KG in January 2020 is 8 USD more expensive, but compared to other times, the price of July 18 USD/KG KG's price is still at a low level, and the domestic market is currently optimistic about the VD3 market in the fourth quarter. It is recommended that customers can appropriately increase VD3 inventory if they find relatively low-priced sources in the market.