Vitamin B4 Prices Expected to Stay High as Demand Soars and Supply Chain Struggles Continue

The prices of Vitamin B4 are expected to stay elevated globally through the end of October, continuing the upward trend seen in recent months. Rising demand from key industries, coupled with persistent supply chain disruptions and limited stock availability, is exerting upward pressure on prices. Additionally, as the fourth quarter begins, many market players are prioritizing the replenishment of their stocks, further fueling the upward trajectory of Vitamin B4 prices.

The Golden Week holiday in early October likely contributed to a rise in Vitamin B4 prices due to its impact on production and supply chains. During this national holiday in China, many businesses, including those in the nutraceutical and healthcare sectors, either halt operations or reduce their capacity. This temporary slowdown resulted in a reduced production of Vitamin B4, creating a short-term supply shortage. Furthermore, distribution delays and overall supply chain disruptions occurred as logistics operations slowed down during the holiday. With the limited availability of Vitamin B4, market participants responded by raising prices to reflect the scarcity, leading to a noticeable increase in prices during this period.

The interplay of various factors is significantly influencing Vitamin B4 prices, particularly in Western markets such as the U.S. and Europe. First, the low stock levels in key regions, coupled with increasing delays from China and longer lead times for shipments, have created a precarious situation where inventory levels are being depleted and availability is compromised. This supply crunch has inevitably put upward pressure on prices.

In Europe, the economic landscape is shifting, with the European Central Bank (ECB) anticipated to implement interest rate cuts aimed at stimulating economic activity. The recent decline in inflation to 1.8% in September, falling below the ECB’s 2% target, suggests consumers are facing less financial strain. This improvement in economic conditions could enhance consumer confidence and increase demand for various products, including Vitamin B4. As households feel more financially secure, suppliers may adjust their pricing strategies, accordingly, potentially driving Vitamin B4 prices higher.

Additionally, ongoing congestion at U.S. ports, aggravated by labor strikes at East Coast and Gulf Coast ports that commenced on October 1, further complicates supply chains. These disruptions have led to delays in the distribution of Vitamin B4, exacerbating the supply-demand imbalance and contributing to rising prices.

ChemAnalyst predicts that Vitamin B4 prices will continue rising, driven by consistent demand from key end-user industries. The typical increase in shipments during Q4, as businesses prepare for the winter holidays and Chinese New Year, will likely maintain pressure on container freight, potentially preventing a decline in freight costs. This seasonal demand surge can support higher Vitamin B4 prices as companies plan ahead for increased consumption and potential supply chain disruptions.