Boya Hexun quoted data on December 14 showed that Jindawei Vitamin A in Beijing was 1500 yuan / kg, a weekly increase of more than 30%. According to industry insiders, the restriction of environmental protection has caused the supply volume to drop sharply, and the middlemen have a strong momentum to increase prices. In terms of downstream demand, animal husbandry has entered a profitable range and the demand for feed vitamins has increased.
According to China Securities News on December 15th, since December, vitamin prices have reached new highs. On December 13, the transaction price of vitamin A rose from 850-950 yuan / kg to 950-1200 yuan / kg, a single-day increase of 19.44%. The price of feed vitamins reached 333.6 yuan / kg, a 6-year high since 2011, a 91% increase from the beginning of this year and a 79% increase from the same period last year.
For other varieties, the latest market price of VB1 is 490-510 yuan / kg, VB2 market price is around 450-480 yuan / kg, VB3 is 52-62 yuan / kg, and VB6 is 490-520 yuan / kg. Compared with the beginning of the year, they have risen to varying degrees.
Founder Securities pointed out that vitamin A manufacturers have basically stopped reporting and signing off due to environmental protection restrictions. Some manufacturers only accept orders for old customers in a limited amount, and the market has fewer sources of goods; middle traders have a strong sentiment in price increase and strong momentum for price increase. In terms of downstream demand, animal husbandry has entered a profitable range, benefits are all over the board, and vitamin demand has entered a growth phase. Since November this year, feed consumption has generally maintained a moderate increase.
Vitamins, as fine chemicals, are difficult to support the entire industrial chain, production is easily affected by raw materials and intermediate links, and the impact of environmental protection remediation is more sustained and far-reaching. The feed vitamin industry is highly concentrated, leading enterprises account for a large proportion of production capacity, and have strong pricing power. Vitamin production has high pollution and high technical barriers, and it is difficult to increase production capacity. Against the background of supply-side reforms and stricter environmental supervision, it is difficult to build new vitamin production capacity.
Baichuan Information Basic Chemical Industry Analyst told reporters of China Securities Journal that the overall feed consumption in December is expected to continue to rise. The weight of stocked livestock and poultry has risen, and unit consumption has risen; double festivals are approaching, and the holiday effect will drive the total demand for livestock and poultry. The peak consumption season is expected to boost feed consumption. In addition, the monitoring of feed antibiotics is becoming stricter, which promotes the growth of vitamin consumption. The increasing demand for livestock and poultry meat products supports the high price of vitamins.
The increase in vitamin prices has a great boost to the performance of leading companies. Suntec Bio is the world's largest biotin producer with a global market share of 30%. Garden Bio is the world's largest producer of vitamin D3, and has the advantage of industrial chain integration. Guangji Pharmaceutical is the world's largest producer of vitamin B2, accounting for nearly 50% of global production capacity.
From the perspective of the annual performance announcement of listed companies, Yifan Pharmaceutical is expected to achieve a net profit of 1.163 billion yuan to 1.374 billion yuan attributable to shareholders of listed companies in 2017, an increase of 65% to 95% year-on-year. According to the company, the price of vitamin B5 and other products has increased significantly. Jindawei predicts that in 2017, net profit attributable to shareholders of listed companies will be 405 million-590 million yuan, an increase of 35% -80% year-on-year. The company said that sales of coenzyme Q10 increased, prices stabilized and rebounded, costs fell, and vitamin prices continued to rise.
