An important event in the field of feed additives this week was an accident involving a buffer tank in the exhaust system of an intermediate workshop used in the production of beta-ionone at the Chinese supplier Zhejiang Medical Company (ZMC). It was reported that there was. Chemiex.
“Video footage circulating on social media depicted a large-scale fire that affected at least one building. Fortunately there were no casualties and direct economic damage was minimal. As a result, operations continued without interruption.
“Nevertheless, it is unusual for a manufacturer to issue such a swift statement downplaying an incident such as this. “There remains uncertainty in the market regarding the impact on the market.Prior to this event, prices for the latter two vitamins were already showing signs of consolidation,” said Stefan Schmi, Chief Economist at Chemiex. Dinger told Feed Navigator.
He added that it would not be surprising to see further announcements from companies and authorities next week detailing impact assessments, corrective actions, occupational safety protocols and other related topics.
Additionally, progress has been made regarding the EU market authorization of Zhejiang NHU’s feed-grade vitamin B12, and this topic will be discussed at the next SCOPAFFF meeting, the Swiss data provider Market Comment noted.
However, Schmiedinger continued, freight rates have shown some volatility, posing a tactical price increase risk.
Chinese markets are currently closed for Golden Week until Sunday, which coincides with Labor Day. In addition, other regions are also preparing for the holidays, resulting in a reduction in overall activity.
China’s feed demand
Beyond additives, China’s livestock population has declined significantly, with an estimated loss of 48.5 million animals, according to Kemiex data, which is hurting feed demand in one of the world’s largest feed consumers. May have short-term effects.
Additionally, local soybean meal prices have fallen by approximately -14% since the beginning of the year.
In contrast, Brazil’s meat exports in the first quarter grew by +28% for beef and +1% for pigs, while chicken exports decreased by -7% year-on-year.
