Pourquoi les exportations de VA sont-elles serrées ?
Explanation of VA 1000 Market Supply:
This Monday’s “Weigao Weekly” mentioned the tight export supply of VA 1000, which has attracted some attention and feedback. A common question is: “Isn’t the current VA market weak? Why is there still a supply shortage?” The following provides an overview of the current VA 1000 market situation to help clarify the market structure and supply conditions.
1. Basic Concept of VA 1000:
VA 1000 generally refers to feed-grade vitamin A with a potency of 1,000,000 IU/G. In export and international markets, the trade name “VA 1000” is commonly used. In contrast, feed-grade vitamin A with 500,000 IU/G potency is usually referred to as “VA 500.” As such, VA 1000 contains twice the vitamin A content of VA 500.
2. Differences Between VA 1000 and VA 500:
2.1 Feed formulation and usage habits differ between domestic and international markets:
In China, feed enterprises are more accustomed to using VA 500, based on long-standing industry practices and practical needs. However, in the international market, more than 90% of feed formulas prefer VA 1000.
This difference is not just about the dosage being twice as much. There are other distinctions:
Transportation Cost Differences: When ocean freight rates are high, using VA 1000 can significantly reduce transport costs. A shipping container may cost several thousand to over ten thousand USD. Since VA 1000 contains twice the active ingredient per unit, it effectively halves the shipping cost compared to VA 500—offering significant savings for international customers.
Production Process Difficulty: Technically, producing VA 1000 is more complex than producing VA 500. That’s why some Chinese manufacturers that can produce VA 500 from A-oil cannot produce VA 1000.
Therefore, it’s easy to understand why VA 500 is priced at RMB 62–65/kg domestically, while VA 1000 is priced at USD 18–20 for export—roughly 20% higher. The price difference is not simply double, despite the dosage difference.
3. Current Supply and Market Situation for VA 1000:
VA 1000 and VA 500 are not simply two versions of the same product—they are tailored for different markets and specifications. This analysis focuses only on VA 1000.
3.1 Current Status of Producers in China:
There are four producers of VA 1000 in China: NHU, Zhejiang Medicine, Kingdomway, and Xinfa Pharmaceutical. Verified information indicates that three of them already have orders scheduled through mid-August. For example, orders placed in June are being delivered at the end of July. Only one producer currently has slightly more available capacity. Additionally, Wanhua Chemical has relatively good potential, but since launching production at the end of last year, its VA 1000 products have not yet entered the market at scale.
Internationally, three companies produce VA 1000: DSM, BASF, and Adisseo.
3.2 Why Is VA 1000 Export Tight in China?
3.2.1 Production Adjustment Reduced Supply:
As VA 1000 prices continued falling earlier this year—approaching or even falling below cost—some manufacturers adjusted production strategies and cut back on capacity, contributing to the current tight supply.3.2.2 Large-Scale Overseas Procurement:
When prices fell to historical lows, users saw procurement costs become highly favorable. Since late May, many overseas users began stockpiling large volumes, leading to a surge in orders for June, July, and August—further tightening supply.3.2.3 Summer Heat & Maintenance Disrupt Supply:
Scheduled maintenance during summer heatwaves is standard industry practice. Several manufacturers have already begun maintenance shutdowns, further reducing market supply and intensifying the shortage.
3.3 Market Inventory Confirms Tight Supply:
Over the past six months, falling prices have exhausted distributor inventories. Last week, several foreign customers urgently needed VA 1000, and despite over a week of effort, only a small portion of the demand could be met. This illustrates the extent of the current supply shortage.
4. Q3 Market Outlook for VA 1000:
4.1 Manufacturers Adjusting Order Strategy:
Due to tight supply, reduced capacity from maintenance, and large export order backlogs—combined with cost pressures—two out of four Chinese VA 1000 manufacturers began turning down lower-priced or less loyal orders last week. As of this week, another manufacturer has adopted a more cautious order-taking strategy, limiting order acceptance.
4.2 Market Outlook:
Currently, VA 1000 delivery is extremely tight, and this situation is expected to continue. On one hand, production halts during maintenance will further restrict supply. On the other hand, overseas demand remains strong, with continuous orders.
Given this, regardless of the internal competition and price pressure in the market, considering all factors, we believe the price of VA 1000 returning to a reasonable level—around USD 25—is highly likely.
