German Vitamin B4 Prices Increase in September Amid Optimistic Consumers' Sentiments

The prices of Vitamin B4 in Germany witnessed a notable upward trajectory throughout September 2023. This upward trend can be attributed to multiple factors, including reduced availability of inventories, escalating energy costs, and the optimistic demand outlook. Vitamin B4 is widely used in health supplements and cosmetics. Its widespread utilization has resulted in a steady market demand, ultimately leading to a significant surge in Vitamin B4 prices. Additionally, the growing awareness about the importance of nourishing foods has propelled the demand for Vitamin-enriched products, subsequently driving up the costs of Vitamin B4.

China's manufacturing industry is showing signs of revival, providing confidence that the country's economy is regaining momentum after a significant slowdown early this year. In September, China's manufacturing purchasing managers' index (PMI) gently climbed back into the expanding zone, revealing the reboot of factory activity and signaling a promising economic revival within the country. On the demand side, there is a steady increase in new orders, meaning that the manufacturing market is seeing persistent expansion. This encouraging trend has kept the market confidence on the upper side, resulting in a notable surge in Vitamin B4 prices in China. Consequently, this ripple effect has also positively similarly influenced the German market. Furthermore, the decrease in imports from China has also resulted in a constrained availability of Vitamin B4 in the German market, leading to increased prices.

German business activity decreased in September for the third month, indicating a "deep" economic contraction in the third quarter. The services sector declined for the second month in a row, albeit the rate of contraction slowed substantially. The sector reading increased from 47.3 in August to 49.8 in September, although it remained below 50. This led to tightening market conditions and reduced inventory levels, ultimately increasing Vitamin B4 prices. Furthermore, Germany faces a significant hurdle in the form of escalating energy expenses, surpassing the levels observed three years ago and even reaching double the rates witnessed in the United States. This contributed to an increase in operational expenditures and transportation costs, resulting in a considerable surge in the prices of Vitamin B4.

As per the ChemAnalyst analysis, Vitamin B4 prices are expected to rise further in the forthcoming months due to a steady surge in demand from the end-user industries and a limited supply of inventories in the market. Furthermore, the ongoing strife between Palestine and Israel is predicted to disrupt the supply chain, leading to a notable increase in crude oil prices. Consequently, this inflationary effect is poised to keep the prices of Vitamin B4 elevated.