In July 2024, the prices of Biotin showed a downward trajectory in European market, extending the price decline observed in June. This persistent slump was attributed to key factors, such as weakening demand from downstream industries and sufficient Biotin availability. Responding to these market conditions, sellers began liquidating their Biotin stocks at reduced prices, further reinforcing the bearish sentiment across the sector.

The latest data reveals that China's factory activity likely contracted for a third consecutive month in July, heightening expectations that officials will need to introduce additional economic stimulus measures. This contraction is primarily driven by weak demand both domestically and internationally. The slowdown in China's economy, especially notable in the consumer sector, has been marked by an 18-month low in retail sales growth and deflationary pressures that have led businesses to reduce prices. As China is a major exporter of Biotin, the weakening of the domestic market and subsequent price cuts have had a ripple effect on the European market, contributing to the decline in Biotin prices.

Recent data indicates that congestion at major Asian container hubs, although not as severe as a few weeks ago, continues to impact capacity and cause delays. This situation has led to the redistribution of vessels and congestion to other regional ports. However, there are signs of easing conditions on the main East-West shipping lanes, evidenced by reports of lower utilization levels and a decrease in freight rates after two and a half months of increases. This easing in congestion and reduction in freight rates has contributed to a decline in Biotin prices in Europe, as the improved shipping conditions facilitate a steadier supply and reduced transportation costs, alleviating some of the previous pressures on the market.

Additionally, the economic downturn in the euro zone's largest economies, France and Germany, has further influenced Biotin prices. Recent surveys have revealed a significant drop in business sentiment, with companies in these nations growing increasingly pessimistic about the economic recovery. This waning confidence has been driven by several factors, including weaker global economic conditions, policy uncertainties within France and Germany, and potential geopolitical implications from the upcoming US presidential elections. As businesses in these major economies face growing concerns about stagnating growth and an unstable economic environment, they are likely scaling back on investments and reducing inventory levels. This reduced demand pressure has contributed to the decrease in Biotin prices, reflecting broader economic uncertainties and shifting market dynamics within the European region.

ChemAnalyst analysis predicts that Biotin prices are likely to keep falling in the months ahead, driven by persistently weak demand from end-users. Factors such as consumer hesitancy due to inflation and elevated interest rates, along with the impact of the Red Sea conflict, are expected to further pressure Biotin prices downward.