The global carnitine market witnessed a notable price increase in January, reversing the declining trend observed in the previous month. The primary factor behind the price surge was a resurgence in demand across the pharmaceutical, nutraceutical, and animal feed sectors. After a subdued December, industry participants increased procurement activity in anticipation of stronger seasonal demand.

Key Takeaways:

• Increased demand across pharmaceutical, nutraceutical, and animal feed sectors fueled the price surge.
• Reduced manufacturing activity in China due to Lunar New Year holidays tightened carnitine supply.
• weather, high cargo volumes, and port congestion (especially in China) exacerbated supply chain issues, causing shipping delays and bottlenecks.
• Strong export orders from India, driven by global restocking efforts ahead of tariff hikes, added to the upward pressure on carnitine prices.

The prices of carnitine in China trended upward, largely due to reduced manufacturing activity as factory workers left early for the Lunar New Year holidays. Data from the National Bureau of Statistics revealed that China's Purchasing Managers' Index (PMI) dropped to 49.1 in January from 50.1 in December, signaling the first contraction in four months. This decline in industrial output limited production capacity, tightening the carnitine supply. Concerned about potential shortages, market participants rushed to secure inventories, driving up demand and further escalating prices.

Severe weather conditions and a surge in cargo volumes ahead of the Lunar New Year have intensified port congestion, placing immense pressure on the global supply chain for products like carnitine. A substantial number of vessels remain anchored at major ports across Asia, Europe, and North America, causing widespread shipping delays. These logistical disruptions have led to bottlenecks, hindering the smooth flow of goods and complicating the timely delivery of nutraceutical products, further straining supply chains.

As the Lunar New Year began on January 29, severe congestion at Chinese ports intensified supply chain challenges. This is especially significant given China’s crucial role as a major production and export hub for nutraceuticals, including carnitine. The resulting delays have pushed up transportation costs and tightened supply in key markets like the USA and Europe. As a result, the combination of supply shortages and logistical disruptions has fueled a global rise in carnitine prices.

India's manufacturing sector experienced strong growth in January, propelled by a sharp increase in export orders that surpassed domestic demand. This export surge was largely driven by a global restocking effort, as businesses rushed to replenish inventories ahead of upcoming tariff hikes. The intensified international demand further strained supply, adding to the upward pressure on carnitine prices.

Overall, carnitine prices could remain firm in the near term, given sustained demand from the nutraceutical sector and potential supply-side constraints. Market participants remain cautiously optimistic, closely monitoring developments that could influence the carnitine market in the coming months.