Price pressure continues to be felt on Vitamin E and Vitamin A, especially Vitamin A, from US suppliers. Prices for both products have increased slightly over the past few weeks. Read more in this week’s Feed Additives Snapshot (Week 23).
A combination of announced price increases, rising container freight rates, supply delays, low inventories, and factory maintenance announcements have led to increased buying activity. Vitamin D3 500 is showing a strong trend in mainland China, as is Vitamin B1 mono. Rising container freight rates are also starting to weigh on the relatively low-priced vitamins.
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Vitamin E 50%
Market sentiment remains strong with some regions still seeing buying activity, although less than in previous weeks. Shipment delays, price increase announcements, factory maintenance announcements, declining inventory levels, and moderate consumption are driving the market strength. Higher container shipping costs are also driving up Vitamin E final prices. While prices are rising in most regions, prices remain subdued as questions remain about how long this period of strength will last. This was the catalyst for buying in the third quarter, which has contracted in the second quarter and continues to do so for much of the third quarter.
Vitamin A 1000
We are seeing suppliers trying to raise prices, especially in the US, indicating low inventories and material delays. We are also seeing some communication of potential market disruptions elsewhere, including price increases, reduced production, maintenance periods, and supply delays. But so far, buyers have not really responded 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 some of Q3.
We’re tracking market prices for three important vitamins here. Take a look.
Vitamin D3 500
China FOB prices are firming and some suppliers are suspending offers. Manufacturers and suppliers have a strong desire to raise prices and break away from relatively low price levels. Also, container freight rate increases are starting to become noticeable, so price increases are expected. Prices in the US and Europe are still relatively stable, but may firm up soon. Despite delays from China, rising container freight rates and rising China FOB prices, the market is quiet. The second quarter has contracted, and part of the third quarter as well.
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 cuts and we are now seeing a bit more firming. Demand is said to still be weak, so significant price hikes are unlikely in the short term. In general, the market is calm and prices are stabilizing at relatively low levels. If we see price increases, it is due to rising container freight rates. Availability seems fine in most regions. Some covering had already been taken in the second quarter and even early in the third quarter a while ago when prices were stable 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.
