Market Analysis - Monthly Report - October, 2020 - VB6

Review of VB6 market in October

Although the domestic live pig market rebounded slightly in the third quarter, the VB6 market supply was still in the stage of oversupply due to the start of the domestic VB6 factory, and the market price continued to operate. As can be seen from the figure below, from September to October, domestic feed The market price of VB6 grade is still around 15USD/KG, and the ex-factory price of some factories is slightly lower; the ex-factory price of food grade VB6 factories is concentrated at 18-19USD/KG.

2. Current VB6 market situation

As of the beginning of November, the domestic VB6 market was still in a stage of oversupply. In addition, Tianxin, Tiger and other factories were still in full operation. The short-term domestic VB6 market continued to wait and see, and its prices continued to run smoothly at a low level only supported by the cost.

3. ECHEMI forecast

Although the domestic pig farming volume began to rise in the third quarter, due to the slow growth trend, the impact on feed-end products was small, and the supply of VB6 continued to be large. It is difficult to change the oversupply situation in the short term. The market outlook may still be affected by cost. Support, VB6 prices remain low and run smoothly.