Upward pressure continues to be placed on Vitamin E and, to some extent, Vitamin A. Prices for both products have increased slightly over the past few weeks. A combination of price increase announcements, supply delays, stock shortages and plant maintenance announcements has led to increased buying activity. Higher container freight rates are also starting to weigh on lower priced vitamins. A B12 source from China has been approved in the EU. Read more in this week’s Feed Additives Snapshot (Week 22).
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Vitamin E 50%
Market sentiment remains strong, with some regions still seeing buying activity, albeit less than the previous week. Shipment delays, price increase announcements, factory maintenance announcements, declining inventory levels, and strong consumer spending have led to the market strength. Prices have increased slightly in most regions, but activity remains subdued as questions remain about how long this period of strength will last and if it will continue. Buying in the third quarter was sparked by prices still being relatively low, with contractions in the second quarter and much of the third quarter.
Vitamin A 1000
There have been several communications of potential market disruptions, including price increases, production cuts, maintenance periods, and supply delays. However, so far, buyers have shown little reaction to any of these communications, with prices only increasing slightly. Prices are stable or slightly firmer in most regions. The market is quiet; most of Q2 is under contract, as are portions of Q3.
Vitamin D3 500
FOB prices from China have been increasing recently, and there is a strong desire from manufacturers and suppliers to raise prices and break away from relatively low price levels. Container freight rate increases are now starting to become more noticeable, and we are seeing a slight increase in prices. However, as with many vitamins, it is not that easy, and buyers are not willing to enter into long-term contracts as they do not see any structural bullish factors. This has kept prices stable at low levels in most regions so far. Despite delays from China and rising container freight rates, the market is quiet. The second quarter is contracted, and in some cases part of the third quarter.
Vitamin B2 80%
Again, there have been some attempts by suppliers to raise prices, but so far there has been no reaction from the market. In general, the Vitamin B2 market is quiet and stable. Prices in Asia are still relatively low, while prices in Europe and the US are higher. Most of the second quarter has been contracted, and some of the third quarter has also been contracted.
D-Carpan
Prices are expected to rise slightly as container freight increases are starting to become noticeable. Higher container prices may also lead to higher prices as suppliers seek to raise prices for new demand, but the impact will be relatively limited to the total price per kg. Nevertheless, prices are stable at low levels in most regions as supplies are generally abundant and suppliers are eager to maintain market share and move inventory. Q2 is already well covered; Q3 is still largely uncovered.
Vitamin B3
Most suppliers have stopped further price reductions as they did not encourage further sales. Demand is said to remain sluggish, so prices are also unlikely to rise in the short term. In general, the market is quiet and prices have stabilized at relatively low levels. Inventory availability appears to be good in most regions. Some covering had already been taken in the second quarter and even early in the third quarter as prices stabilized at low levels.
Biotin
Manufacturers have made several attempts to raise prices but have been unsuccessful. Supply is ample and long-term contracts have been signed or pending. The market has been quiet, with slightly lower prices again seen for both pure biotin and for contents below 2%. Prices remain historically low. Most of Q2 is under contract, as well as some of Q3. In some cases, buyers have signed long-term contracts through late 2024.
Vitamin C 35% Mono
Market sentiment has weakened somewhat in recent weeks, although some manufacturers have signaled production cuts. While no major changes have been observed, some regions have seen a slight drop in Vitamin C prices, reflecting weak demand. Prices are still higher than they were a year ago, however. There are still long-term contracts signed at previous low price levels, stretching into 2024. Most of the second quarter is signed, and in some cases, most of 2024 is signed.
