Global Vitamin B1 Prices to Remain High as Demand Grows and Supply Tightens

Vitamin B1 prices are expected to stay elevated globally through the end of September, extending the upward trend seen in the previous month. This surge is primarily driven by increased demand from the nutraceutical and healthcare industries, alongside tight market supply. Consequently, suppliers are anticipated to adjust Vitamin B1 prices upward to take advantage of these market conditions, fostering a positive sentiment among participants regarding future price movements.

The Mid-Autumn Festival in China in mid-September and the Golden Week holiday in early October are likely to significantly influence the Vitamin B1 market. During these major holidays, many businesses, including those in the nutraceutical sector, either shut down or scale back operations. This often results in reduced production, potential distribution delays, and disruptions in the supply chain. Consequently, the temporary tightening of Vitamin B1 supply during this period could put additional upward pressure on prices.

As a leading producer and exporter of Vitamin B1, shifts in the Chinese market are having ripple effects across global markets, including the U.S. and Europe. In Europe, the European Central Bank (ECB) cut interest rates by 25 basis points in September, bringing the deposit rate down to 3.5%. This widely anticipated move comes in response to slowing inflation and weak economic growth. The monetary easing may alleviate some financial pressure on consumers, potentially encouraging demand and supporting higher Vitamin B1 prices.

In the U.S., the recent surge in imports this summer, driven by retailers' efforts to mitigate risks from a potential strike by port workers and ongoing shipping disruptions caused by attacks in the Red Sea, could significantly impact Vitamin B1 prices. This precautionary measure is essential as retailers prepare for a condensed holiday shopping season, with Thanksgiving occurring late this year on November 28, creating a tighter timeline for peak shopping and delivery demands leading up to Christmas Eve. As retailers rush to stock up on essential goods, including Vitamin B1, increased demand coupled with potential supply chain disruptions could lead to higher prices.

ChemAnalyst projects that Vitamin B1 prices will continue to rise, driven by consistent demand from end-user industries. The upcoming Golden Week holiday in China is anticipated to prompt buyers to stock up in advance, potentially tightening supply and influencing global prices. Furthermore, as inflation shows signs of easing in Western markets, central banks may consider lowering interest rates, fostering a more favorable economic environment. This could further boost demand and sustain the upward momentum of Vitamin B1 prices globally.