For the Quarter Ending September 2024
North America
Throughout Q3 2024, the CoQ10 market in North America experienced a significant decline in prices, influenced by a multitude of factors. The downward trend was primarily driven by subdued demand from downstream industries, leading to weak overall market dynamics.
Factors such as ample availability weakened regional and overseas demand, and cautious purchasing behavior contributed to the negative pricing environment. As a result, the export market has continued to perform weakly concerning market sales. While, at the same time manufacturers were focused on reducing their further stockpiles as the month concluded, thereby supporting a further drop in the prices.
Overall, across the United States, witnessing a substantial price change, the market on a quarter-on-quarter basis demonstrated a drop of an average of 2 percent further highlighting the declining trend, indicating a consistent downward trajectory. The quarter-ending price of USD 174000/MT of CoQ10 99% CIF-Los Angeles in the USA encapsulates the overall negative sentiment and challenging pricing environment experienced during Q3 2024.
APAC
While on the Asia Pacific side, during the entire Q3 2024, the APAC region witnessed a notable decline in CoQ10 prices, with significant factors contributing to this downward trend. Oversupply situations, subdued demand from key industries, and increased production capacities were key influences on market prices. In China specifically, the market experienced the most significant price changes. With inventory levels surpassing market forecasts, suppliers resorted to price reductions as a strategic measure to clear surplus stocks. This oversupply scenario prompted merchants to implement discounts, particularly on bulk purchases, to stimulate demand and prepare for future replenishments. While on the trade side, the market witnessed a steady drop in freight cost, thereby easing the overall import cost. Despite this ease in the freight cost, the downstream trading sentiments remained on the lower side as inquiries from end-users remained low and buyers were highly resistant to further procurement. As a result, Manufacturers focused on further weakening their profit sentiment, thereby focusing on clearing their inventories yet demonstrating a continuous pessimistic market sentiment. As a result following a quarter-on-quarter the prices dropped by an average of 3 percent during the entire third quarter, indicating a continued downward trajectory. The latest price of USD 155000/MT of CoQ10 Ex-Shanghai in China marked the quarter-ending price. The market sentiment throughout the quarter remained negative, with prices consistently decreasing. Seasonality and correlation played a role in the price changes, aligning with a weakening pricing environment characterized by oversupply and muted demand across the region.
Europe
Similar to that of other nations, the Q3 2024, the CoQ10 market in Europe also marked a decline in prices, largely driven by muted demand, global supply chain disruptions, and rising production costs. Germany, a key player in the European market, experienced the sharpest price drops, reflecting the broader negative market sentiment. This was not just a regional issue but one that mirrored global economic trends, including inflationary pressures and a slowdown in growth. For German traders and buyers, the impact of currency depreciation was particularly pronounced, potentially leading to a restructuring of supply chains. This could have meant a shift towards localized production or alternative sourcing strategies to mitigate the risks associated with currency fluctuations and rising costs. Looking ahead, the CoQ-10 market was expected to undergo significant changes, with an increased emphasis on cost optimization, efficiency in production processes, and potentially a push towards innovation. With a persistent drop in regional quotations, downstream traders were actively focused on reducing their inventories, resulting in clearing the stockpiles at a lower cost. Prices fell significantly by -2% compared to Q2 2024, signaling a major shift in market dynamics. By the end of Q3, CoQ10 prices stood at USD 179,000 per metric ton, CFR Hamburg, illustrating the ongoing challenges faced by the market, as both demand and pricing weakened substantially.
For the Quarter Ending June 2024
North America
In Q2 2024, the CoQ10 pricing landscape in North America exhibited a pronounced negative sentiment, marked by an overall downturn with a steady rise witnessed in the middle of the quarter. Several significant factors contributed to this decline, including an oversupply situation, weak demand from end-user industries, and logistical challenges. The proactive expansion of CoQ10 stocks by suppliers, in anticipation of heightened inquiries, resulted in excessive inventory levels. This strategic production adjustment, combined with weakened import activities, exacerbated the market's oversupply condition. Additionally, the rising freight transportation costs further strained the market, compelling businesses to reassess their pricing strategies, which in turn dampened consumer purchasing behaviour. Focusing exclusively on the USA, the market experienced the most pronounced price changes. The overall trend for Q2 2024 was characterized by subdued market trading and a consistent focus on inventory reduction by suppliers. The seasonality factor, coupled with an increase in operational expenses, added complexity to the pricing dynamics. The quarter's price change remained stable at 0% when compared to the previous quarter in 2024, indicating a persistent negative sentiment.
APAC
The second quarter of 2024 has witnessed an overall downward trend in CoQ10 prices across the APAC region, influenced by several critical factors. Increased production levels, surplus inventories, and strategic destocking initiatives have been the primary drivers of this price decline. Suppliers have been compelled to reduce prices to clear excess stocks, anticipating changing climatic conditions impacting storage and transportation. Intensified market competition and a significant rise in domestic production have further exacerbated this downward pressure. Focusing on China, which experienced the most pronounced price changes, the overall trend has been markedly bearish. However, the market witnessed a steady upward trend during the middle of the quarter where the country witnessed a modest rise in overseas inquiries particularly those from key nutraceuticals, supplements and other sectors. While the overall rise in inquiries were successfully balanced by already stocked up inventories. Traders were successfully balancing the demand side by trading their inventories at a higher rate during the month. This was further supported by rise in freight charges ahead of trade disputes which kept the overall exports from China on the northerly side. Overall, with this mixed trajectory, the market sentiments concerning the CoQ-10 remained on the lower side, resulting in a balanced supply-demand outlook. From the previous quarter in 2024, prices saw a moderate 2% decline, indicating a continuation of the negative sentiment.
Europe
In Q2 2024, the CoQ10 market in Europe experienced a downward trend influenced by a confluence of global and regional factors. The overall stability in CoQ10 pricing was primarily driven by balanced supply-demand dynamics and a low to moderate influx of imports from major exporting nations. Key considerations included sustained production levels in Asia, particularly from China, which maintained a consistent supply of CoQ10 at competitive rates. Additionally, Enterprises, grappling with escalating costs associated with storage and the inherent risk of product deterioration, have commenced releasing their stockpiled Coq-10 into the market. This strategic manoeuvre has augmented the available supply for buyers, further exerting downward pressure on prices. Focusing on Germany, which witnessed the most significant price fluctuations, the quarter was characterized by a weaken pricing trajectory. The CoQ10 market in Germany displayed resilience against broader economic challenges, including inflation and currency depreciation. Notably, the prices remained unchanged from the previous quarter, reflecting a 0% variance, and showed a significant year-over-year decrease of 27%, underscoring the stability achieved despite past volatility. This stability was facilitated by an adequate supply chain and moderate demand from end-user industries, ensuring equilibrium in the market. The stable sentiment in Germany's CoQ10 pricing environment suggests a well-balanced market, neither overly positive nor negative, but rather consistently stable, providing a predictable landscape for stakeholders.
For the Quarter Ending March 2024
North America
The CoQ10 market in North America during Quarter 1 of 2024 faced a range of factors that influenced its performance. The industry experienced a mixed outlook due to various challenges, including limited demand, labor issues, and port congestion. In the USA, a fluctuating CoQ10 market was observed, with prices initially declining by more than 9% compared to the previous quarter due to the last year supported by higher supply coupled with weakened downstream purchasing sentiments throughout the quarter.
High stockpiles and reduced purchasing led suppliers to prioritize clearing inventories, resulting in ongoing price drops. The market also faced higher import costs due to increased freight charges thereby keeping traders highly reluctant to purchase the goods. However, as the quarter commenced towards the middle of the quarter the CoQ10 market displayed resilience and stability, with improved demand from the nutraceutical and pharmaceutical sectors yet remained at a lower level.
Moreover, export challenges, such as shipping reroutes to avoid the Red Sea, inflated shipping costs, resulting in order cancellations and delays. High container freight rates exacerbated the situation, impacting maritime-dependent industries and causing higher import prices witnessed in February. This trend continued until the final weeks of March with some resiliency including ease in freight cost supporting the higher import quotations as the US dollar considerably remained appreciated against the exporting nations' currencies. Overall, the CoQ10 market demonstrated its adaptability and ability to meet the demand, particularly from the nutraceutical and pharmaceutical industries with prices trending on the southerly side majorly.
APAC
The CoQ10 market in the APAC region experienced a challenging quarter due to various factors. Supply shortages and transportation disruptions affected manufacturers, leading to reduced production. Despite these challenges, there was a strong demand from downstream industries, resulting in bulk purchases and subsequent price hikes. China, being the largest market for CoQ10 in the region, witnessed a substantial increase in prices. Examining the trend and seasonality of CoQ10 prices in China, the slowdown in production activities during the Chinese Lunar New Year and Spring Festival celebrations worsened supply constraints. Increased freight and transportation costs added to logistical challenges, making product acquisition difficult. Following the holidays, there was a surge in purchasing activities driven by significant domestic and international procurement orders. This renewed confidence, combined with the depreciation of the Chinese currency (CNY) against the USD, strengthened the upward price trend and bolstered market resilience.
In summary, the CoQ10 market in the APAC region faced supply chain challenges but maintained robust demand from downstream industries in Q1-2024. China witnessed price increases, yet overall market stability prevailed.
However, the price trajectory initially dipped in Q1 due to Year-end destocking activities in the preceding month, leading to reduced demand and ample inventories, which pushed prices down. Western and Northern markets also experienced decreased orders post-holiday season, heightening competition among producers selling them at a discounted rates.
Europe
The CoQ10 market in Europe experienced significant fluctuations in pricing during the first quarter of 2024. Several key factors influenced these changes. Overall, there was a surge in demand from the nutraceutical sector, leading to increased consumption. This heightened demand prompted merchants to adjust their pricing strategies and position their products at premium prices. Secondly, ongoing trade disputes caused disruptions in global supply chains and a notable surge in container freight rates also exerted a significant influence on pricing dynamics, particularly impacting industries reliant on maritime transport for their supply chains, resulting in delayed shipments and extended lead times. These disruptions contributed to shortages of essential goods and materials, further driving prices higher. Additionally, the devaluation of the euro against the dollar further affected the overall supply-demand side as traders were accepting the goods at a higher cost, thereby resulting in an overall price rise. However, the market witnessed some resilience coupled with higher purchasing sentiments still at higher euro. This was witnessed in the beginning of January 2024 where inquiries from the end-users food and nutraceutical sectors witnessed a steady rebound. Overall, by the end of the quarter, the latest price for CoQ10 in Germany stood at USD 212500/MT CFR Hamburg.
For the Quarter Ending December 2023
North America
CoQ10 pricing in North America for the entire Q4 2023 witnessed a downward trend due to multiple factors. After experiencing a significant price surge in the previous month, the sudden decline in demand from the local market and the equilibrium between supply and demand also contributed to the noticeable price decrease. Inventories, however, remained enough among the merchants to cater to the overall requirements and continue to follow some historical, seasonal trends. Furthermore, the manufacturing activity within the exporting nations also plummeted which contributed to the surplus of stock availability among the domestic market and at the ports. Moreover, the USA, being the importing nation, experienced consistent price drops, with no significant fluctuations observed in the local market. Also, even though inflation and the US certain sectors have shown improvement, market participants continue to witness a pessimistic market outlook in terms of the demand side from the Nutraceutical sector. As anticipated, discussions about prices in the US continued to remain on the weaker side, with insufficient new demand emerging from both domestic and international markets. Persistent higher availability of surplus inventory among suppliers, combined with weakened purchasing sentiments, highlighted the challenges faced by market participants in effectively managing their stock until the final weeks of December 2023. Additionally, contributing to this scenario, the appreciation of the Chinese Yuan (CNY) against the US dollar increased the cost for foreign investors looking to invest in China. This potentially results in reduced foreign investment, further reinforcing the overall decrease in prices. With this, overall, the CoQ10 market in North America for Q4 2023 witnessed a bearish trend until the final weeks of December 2023 with prices settling at USD 208750/MT.
APAC
The fourth quarter of 2023 proved to be challenging for CoQ10 pricing in the APAC region primarily in China. Persistent low demand and high inventory levels were the primary reasons for the decline in prices. The downstream market also showed weakness, with CoQ-10 manufacturers experiencing sluggish shipments. In addition, the absence of new inquiries from both domestic and international markets contributed to the decrease in prices. The manufacturing sector across the country has been significantly affected due to the lack of new demand. Market participants continued to express concern about the uncertain future of the market, even as China's manufacturing sector begins to recover from its downturn after a golden week holiday. The supplements industry, in particular, has suffered from the imbalance between supply and demand, leading manufacturers to struggle to attract clients and reducing orders for raw materials like nutraceuticals and APIs used in finished goods for re-export. Consequently, the reduced prices have intensified competition among CoQ-10 producers, prompting them to focus on strategies for cost reduction and product differentiation to protect their market share until the final weeks of December 2023. Ultimately, the latest price of COQ10 Ex-Shanghai in China for the current quarter stood at USD 175500/MT, reflecting the overall negative trend in CoQ10 pricing for the APAC region.
Europe
During the fourth quarter of 2023, the CoQ10 market in Europe witnessed a continual downward pricing trend, aligning with the pessimistic patterns observed in other exporting nations. Examining the overall demand aspect, a consistent decrease in downstream consumption for CoQ10 was noted across the region, with a particular emphasis on Germany. This decline can be attributed to various factors, including heightened production in exporting countries, notably China, resulting in a global oversupply of CoQ-10 in the preceding months. The surplus availability exerted downward pressure on prices as manufacturers and suppliers engaged in fierce competition to clear their inventories. Furthermore, the decreased influx of new inquiries from market participants was linked to the substantial existing inventory held by domestic players, addressing the general demand without necessitating additional orders. Complicating the situation further, the observed reduction in prices extended beyond the domestic scope, impacting key exporting nations. Notably, Chinese provinces, which traditionally play a significant role in the CoQ-10 market, witnessed a substantial dip in prices. This development had a cascading effect on the broader pricing dynamics within Germany, adding complexity to the landscape for market participants. With this, the latest price of CoQ10 in Germany at the end of the quarter was USD 207360/MT as December concludes.
