Vitamin B4 Prices Dive as Global Market Faces Supply Glut and Weak Demand

In July 2024, Vitamin B4 prices saw a notable global decline, marking a shift from the trend of the previous month. This drop was attributed to a lack of demand from end-user sectors such as nutraceuticals and healthcare, coupled with an abundant market supply. Additionally, market players who had previously stocked up in anticipation of higher demand began to reduce their prices to boost sales. This contributed further to the downward trend in Vitamin B4 prices.

The manufacturing sector in Asia faced a period of sluggish performance, primarily due to weak demand from both domestic and international markets. This decreased demand resulted in a slowdown of production activities, leading to an oversupply of Vitamin B4 and exerting downward pressure on its prices.

Recent data reveals that China's manufacturing sector is experiencing a challenging summer, with factory owners struggling due to weak demand and facing potential risks to economic growth for the latter half of 2024. The business climate in the sector has worsened slightly, influenced by factors such as the traditional off-season, insufficient market demand, and extreme weather conditions. To combat increased competition, some manufacturers have lowered their selling prices to boost sales, which has contributed to the decline in Vitamin B4 prices. Additionally, steep import tariffs imposed by major trading partners, including the European Union and the USA, on Chinese exports have further intensified the situation. These tariffs have significantly reduced external demand for Vitamin B4, exacerbating the price drop.

Vitamin B4 prices in Europe experienced a significant drop due to a combination of broader economic and market factors. A major influence was the decline in market sentiment, especially in Germany, where consumer confidence fell. After four months of rising consumer optimism, July saw a shift as households, dealing with increased prices and a slowly recovering economy, opted to reduce their spending. This cautious consumer behavior led to decreased demand for various products, including nutraceuticals like Vitamin B4, which in turn contributed to the price decline.

Meanwhile, in the United States, the Federal Open Market Committee (FOMC) decided to keep the federal funds rate steady at 5.25% to 5.50% in June. The Federal Reserve aims to control inflation while steering clear of a recession, a challenging balance known as achieving a "soft landing." By maintaining high interest rates, the Fed increases borrowing costs for businesses and consumers, which in turn slows economic activity and dampens overall demand. This decrease in demand has had a downward effect on Vitamin B4 prices.

According to ChemAnalyst's analysis, Vitamin B4 prices are projected to continue their decline in the coming months, mainly due to ongoing weak consumer demand. Additionally, uncertainties surrounding the Red Sea conflict could pose risks to international supply chains, potentially worsening disruptions in global trade. These issues are expected to negatively affect global demand and contribute to sustained lower prices for Vitamin B4.