For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American Vitamin B4 market displayed a turbulent pricing trend influenced by various factors impacting multiple sectors. The United States, in particular, experienced the most pronounced price fluctuations, resulting in a volatile pricing landscape marked by significant changes throughout the quarter.
Initially, prices fell due to several factors exerting downward pressure on the market. A major influence was the inflation rate, which had soared above 9% but began to decline substantially as the quarter progressed. This reduction in inflation led to lower overall operational costs for businesses, allowing them to decrease Vitamin B4 prices and pass on the savings to consumers. However, as September approached, a shift occurred, and prices began to rise sharply. This increase was driven by a mix of economic and logistical factors. Consumer confidence improved, bolstered by more positive perceptions of the economy and easing inflation, despite ongoing concerns about the labor market. This renewed optimism spurred greater demand for Vitamin B4, placing upward pressure on prices.
In light of these shifting dynamics, market participants proactively worked to enhance their inventories, anticipating a future surge in demand and seeking to mitigate potential supply chain disruptions.
APAC
Throughout Q3 2024, Vitamin B4 pricing in the APAC region displayed a varied trajectory, beginning with an initial decline that transitioned into a recovery by the end of September. During July and August, prices fell primarily due to weak market sentiments. A key factor in this downturn was the decline in new business and orders, driven by changing consumer preferences and intensified competition among manufacturers. This confluence of factors led to diminished demand, prompting companies to adjust their pricing strategies downward to remain competitive. Additionally, the export market exhibited sluggish growth, reaching its slowest pace since April. This lack of export momentum mirrored weak global demand, further reinforcing the downward trend in Vitamin B4 prices. As a result, manufacturers encountered difficulties in maintaining stable pricing levels amid these challenging conditions. However, as the quarter progressed into late September, the landscape shifted. Prices began to rebound, fueled by a noticeable slowdown in the manufacturing sector that followed a period of strong growth. This change indicated that production levels were struggling to keep pace with the rising demand for Vitamin B4. The growing disparity between supply and demand created potential supply constraints, typically resulting in upward pressure on prices.
Europe
During the third quarter of 2024, the pricing dynamics of Vitamin B4 in the European region displayed a mixed trend shaped by several key factors. Initially, prices experienced a decline, primarily due to weaker-than-expected demand in the German market, particularly within the nutraceutical and healthcare sectors. This subdued demand led market participants to adopt a cautious approach, opting to maintain substantial inventory levels to meet current consumption needs in Germany. However, as September approached, a significant shift occurred, with prices beginning to rise. This increase was driven by strong demand from end-user industries and strategic inventory management by companies preparing for potential disruptions. Favorable macroeconomic conditions also contributed to this upward trend. Additionally, the ongoing conflict in the Red Sea complicated matters by disrupting global maritime traffic, resulting in logistical challenges that constrained the supply of Vitamin B4. These supply limitations added further upward pressure on prices as market dynamics evolved. Moreover, improvements in consumer sentiment, especially in Germany, played a crucial role in revitalizing demand and creating a more optimistic market outlook. Despite the various challenges faced by the industry, companies actively worked to enhance their stockpiles in anticipation of potential shipping delays, thereby supporting the upward trend in prices.
For the Quarter Ending June 2024
North America
In Q2 2024, Vitamin B4 (Choline Chloride 60%) pricing in the North America region experienced an overall positive sentiment, marked by an upward trend in prices as the conclusion approached. The quarter was characterized by a convergence of significant factors that collectively influenced market prices. Among these factors, a notable increase in demand from downstream sectors, particularly in the nutraceutical and healthcare industries, played a pivotal role. Market participants anticipated this surge, leading to proactive restocking and inventory buildup, which exerted upward pressure on prices. Furthermore, persistent inflationary pressures and the Federal Reserve's decision to maintain high interest rates contributed to a reduction in consumer purchasing power, indirectly affecting market dynamics and boosting prices as suppliers sought to offset rising operational costs.
Focusing on the USA, which saw the maximum price changes, the overall trend reflected a robust increase in prices. Seasonal demand fluctuations and strategic restocking ahead of anticipated demand spikes contributed to this trend. The correlation between price changes and economic indicators was evident, with inflation and high-interest rates driving a cautious yet upward pricing environment. The price of Vitamin B4 in the USA exhibited a notable increase from the previous quarter, recording a -2% change, while the price comparison between the first and second half of the quarter noted a 3% increase. Concluding the quarter, the latest price stood at USD 740/MT CFR Los Angeles.
APAC
In Q2 2024, the pricing environment for Vitamin B4 in the APAC region has been a mix of both positive and negative, driven by an intricate web of factors. Market prices surged especially in July owing to a combination of rising demand and constrained supply. The quarter observed a significant uptrend in market sentiment, fueled by robust economic activities and an increase in consumer spending. The manufacturing sector's recovery played a pivotal role, spurring higher production levels and subsequently escalating the need for Vitamin B4. However, supply-side challenges, such as logistical issues and disruptions in production facilities, exacerbated the situation. Notably, the temporary shutdown of major plants during the quarter further tightened supply, amplifying price hikes.
China, being the epicenter of these shifts, witnessed the most pronounced price changes. The market dynamics in China were heavily influenced by seasonality factors, where heightened activity during peak seasons accentuated demand spikes. The overall trend indicated a robust correlation between rising consumer demand and escalating Vitamin B4 prices. Compared to the previous quarter in 2024, there was a notable -3% change, reflecting a period of adjustment and stabilization. However, the price comparison between the first and second half of the quarter revealed a 3% increase, underscoring the intensifying demand dynamics as the quarter progressed.
Concluding the quarter, the price of Vitamin B4 (Choline Chloride 60%) FOB Shanghai in China stood strong at USD 600/MT, encapsulating the persistent upward trajectory driven by both supply chain constraints and burgeoning demand.
Europe
In Q2 2024, Vitamin B4 (Choline Chloride 60%) pricing in the Europe region exhibited notable fluctuations, influenced by a confluence of market dynamics. This quarter witnessed a predominantly bearish trend, reflecting an unstable pricing environment. Key factors driving these trends included subdued consumer demand amidst persistent inflationary pressures and high-interest rates, which significantly constrained spending in downstream sectors such as nutraceuticals and healthcare. Additionally, the market faced an oversupply scenario as buyers had preemptively stocked inventories to mitigate potential supply chain disruptions associated with the Labor Day holidays in China.
Germany stood out with the most notable price fluctuations. The country saw a decline in prices until May, followed by a sharp and significant increase throughout June. Seasonality did not provide the usual demand uptick, as consumer sentiments remained cautious due to economic uncertainties. The correlation between low consumer spending and abundant supply maintained downward pressure on prices. The quarter saw a -3% change from the previous quarter, emphasizing a continuous negative trajectory in pricing.
Comparing the first and second halves of the quarter, there was a 5% price difference, indicative of fluctuating market sentiments and responses to varying supply-demand dynamics. The quarter concluded with the pricing of Vitamin B4 at USD 690/MT CFR Hamburg in Germany, underscoring a challenging pricing environment driven by macroeconomic challenges and cautious market behaviors.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of Vitamin B4 in the North America region experienced notable fluctuations, reflecting the complex interplay of various factors shaping market conditions. The pricing trend throughout the quarter exhibited a mixed pattern, characterized by shifts in both supply and demand dynamics, alongside external factors influencing the market.
The price trajectory of Vitamin B4 in the region showed increases in January, driven by heightened buying activity in downstream sectors such as nutraceutical and healthcare. Additionally, disruptions at two crucial shipping chokepoints, namely the Suez Canal and the Panama Canal, resulted in increased costs for U.S. retailers, subsequently leading to higher prices for consumers. However, as the quarter progressed, prices declined due to cautious consumer attitudes towards the economy. Factors such as sluggish retail sales and subdued consumer spending contributed to this decline. Persistent inflationary pressures further compounded consumer caution, prompting a conservative approach to finances.
The final quarter's price for Vitamin B4 (Choline Chloride 60%) CFR Los Angeles in the USA was reported as USD 735/MT, reflecting the culmination of these complex market dynamics. Overall, the nuanced analysis highlights the impact of various factors, including consumer behavior, supply chain disruptions, and market conditions, on the pricing dynamics of Vitamin B4 in the North America region during Q1 2024.
Asia Pacific
In the APAC region during Q1 2024, the pricing dynamics for Vitamin B4 displayed a mixed pattern, influenced by several significant factors. Initially, prices saw an uptick as demand surged from both domestic and international markets, putting strain on the supply chain. Market participants responded by offering higher quotations to maximize profits. However, prices experienced a decline in February and March due to weak consumer sentiments. The drop in demand was primarily linked to the closure of numerous businesses during the Spring Festival, a significant holiday period in China. With many companies temporarily shut down, the overall demand for Vitamin B4 decreased, leading to an oversupply in the market. Positive developments, such as decreased input costs for manufacturers, resulted in reduced production expenses, thereby influencing the pricing dynamics of Vitamin B4. Market participants found themselves in possession of substantial inventories in their warehouses, prompting them to actively seek opportunities to offload their stock at discounted rates. Despite these challenges, the final price for Vitamin B4 (Choline Chloride 60%) FOB Shanghai in China at the end of Q1 2024 was USD 590/MT. Overall, the pricing dynamics of Vitamin B4 in the APAC region during Q1 2024 were influenced by a combination of factors, including demand fluctuations, global supply chain disruptions, and economic conditions.
Europe
In the first quarter of 2024, the pricing dynamics of Vitamin B4 in Europe unfolded amidst a complex landscape influenced by various factors. Initially, prices saw an uptick driven by geopolitical tensions, logistical challenges, and constrained inventories. Heightened demand from the healthcare and nutraceutical sectors further contributed to this increase. However, prolonged disruptions in the Red Sea complicated trade routes between Asia and Europe, leading to increased freight costs that impacted the pricing scenario of Vitamin B4, especially in Germany. As the quarter progressed, prices experienced a decline in February and March. This decline was attributed to persistently lackluster performance in new industrial orders, coupled with insufficient domestic demand and a relatively high backlog. Additionally, the central bank's decision to maintain existing interest rates added complexity to the market environment, further straining consumers' purchasing power. In response, market suppliers and traders sought to address excess inventories amidst sluggish domestic demand, navigating through the evolving market landscape. Ultimately, the final price for Vitamin B4 (Choline Chloride 60%) CFR Hamburg in Germany in Q1 2024 was recorded at USD 680/MT. Overall, the pricing dynamics of Vitamin B4 in Europe during this period reflected the interplay of various factors, highlighting the challenges and intricacies of the market.
For the Quarter Ending December 2023
North America
In the North American region, the pricing of Vitamin B4 in the fourth quarter of 2023 (October to December) was influenced by several key factors. Firstly, the market experienced a modest decline in prices due to diminished demand from the pharmaceutical and healthcare sectors, resulting in an oversupply.
Additionally, the ongoing maintenance of high-interest rates by the Federal Reserve impacted consumer purchasing power, further contributing to the downward trend. Moreover, the decline in Vitamin B4 prices in key exporting countries like China and India also influenced the market in the USA, as international prices decreased. Focusing specifically on the USA market, Vitamin B4 prices experienced a decline throughout the Q4, attributed to the reduced demand from end-user industries and the impact of high-interest rates on consumer spending. Faced with surplus supply and the potential for reduced demand, manufacturers and distributors responded by offering discounted quotations to clear excess inventory, especially towards the end of the year.
Overall, the market sentiment is expected to improve, with better trade activities and steady demand from end-users. The quarter ending price for Vitamin B4 (Choline Chloride 60%) CFR Los Angeles in the USA is USD 710/MT.
APAC
The APAC region's Vitamin B4 market in Q4 2023 (October to December) witnessed significant fluctuations and challenges. The market was primarily affected by weak demand from the healthcare and pharmaceutical industries, resulting in a decline in prices. Additionally, the manufacturing sector in China, the major player in the region, faced a contraction, indicating a slowdown in the economy. The decrease in export sales, particularly to Europe and the USA, further contributed to the decline in prices. The market also experienced a surplus due to a lack of substantial orders and intense competition among industry players. Moreover, the global decrease in crude oil prices led to lowered transportation costs and production expenses, exerting downward pressure on Vitamin B4 prices. Market players also intentionally dropped prices in order to quickly dispose their previous stocks, contributing to the overall fall. Overall, the Vitamin B4 market in the APAC region faced challenges due to weakened demand and a sluggish manufacturing sector in China, leading to a decline in prices. The quarter ended with the Vitamin B4 price in China at USD 615/MT FOB Shanghai.
Europe
In the fourth quarter of 2023, the Vitamin B4 market in Europe experienced several significant factors that influenced prices. The market dynamics were influenced by factors such as currency fluctuations, the tightening of monetary policy, and weak consumer sentiments. Firstly, there was a notable decrease in overall demand for Vitamin B4 due to subdued consumer spending and a reduction in consumption. This decline in demand was further exacerbated by the continued impact of high interest rates, which limited consumers' purchasing power. Additionally, the Euro appreciated against the US dollar, resulting in more cost-effective imports and ensuring an ample supply of Vitamin B4 in the German market. Furthermore, increased competition among suppliers contributed to a substantial reduction in prices. However, despite these factors, Germany experienced a decline in inflation, which provided some relief for consumers. The European Central Bank maintained its interest rate at 4%, further constraining the growth potential of the economy and keeping overall demand subdued. Overall, the market situation remained bearish, with low demand and moderate to high supply levels. The latest price for Vitamin B4 (Choline Chloride 60%) CFR Hamburg in Germany for the current quarter is USD 670/MT.
For the Quarter Ending September 2023
North America
After beginning the quarter on an unfavorable note, Vitamin B4 prices increased in the second half of the quarter, rounding off the third quarter of 2023 on a positive note. Following the unbalanced demand and supply circumstances, the domestic market for this commodity began to rise later in August, owing to improved demand for Vitamin B4 from the pharmaceutical and nutraceutical sectors. Inventory-wise, the mid-quarter drop in stock levels prompted sellers to raise their quotations by a significant margin. The cost of importing nutraceuticals increased in the second part of the quarter due to currency changes between the US dollar and the Chinese yuan (CNY). While inflation moderated slightly in the third quarter of 2023 as a result of the United States' economic turnaround, the Fed Reserve's interest rate hike kept market investors in choppy waters. Furthermore, Chinese merchants increased their price quotations ahead of China's golden week and mid-autumn vacations in September in response to increased demand from outside, particularly the United States, causing the price quotations to jump even more.
Asia Pacific
The price trajectory for Vitamin B4 in the third quarter of 2023 exhibited a strong trend toward higher costs, with prices rising from $620/mt to $650/mt from July to September. The development of China was slower than expected in the first half of 2023, then deteriorated in the second half due to rising deflation, high unemployment, and weak foreign demand. Although a few variables have contributed to China's Vitamin B4 price increase this quarter, the two most significant have been tight currency (stronger Yuan (RMB)) against the USD and higher local demand from end-user businesses. Higher orders for Vitamin B4 from pharmaceutical and nutraceutical providers considerably impacted the nation's dietary supplement market in Q3 2023. The strengthening of the Yuan and the fall in the value of the US dollar increased the cost of exporting nutraceuticals, including Vitamin B4, resulting in higher expenses for both the domestic and international markets. In terms of inventory, market participants who have met consumer demands have kept supply moderate to low, and manufacturing production has been stable during the period. Due to an increase in demand and inquiries, there was a slight increase in both freight and manufacturing in the latter weeks of September, prior to the Golden Week holidays.
Europe
During the third quarter of 2023, the market for Vitamin B4 in Germany demonstrated a mixed pattern, with values first declining from $720/mt to $670/mt from July to August and then rising to $710/mt in September. Product availability in the first half of the quarter drove merchants to cut their prices. However, this tendency changed, and a paucity of stock in the later half forced them to boost their quotations by a significant margin. According to industry analysts, the German manufacturing sector was still struggling as the third quarter began. As a result of increased queries from domestic pharmaceutical and nutraceutical companies, imports of Vitamin B4 from Asia, particularly China, remained positive throughout the quarter. Reduction of the Euro has also been a major factor in Germany's price increase, since the strong USD forced domestic players to pay high prices when importing goods from China. High inflation and Germany's unfavorable manufacturing environment remained the main challenges to the economy, and considering this market participants adopted a wait-and-see stance.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, the North American domestic Vitamin B4 (Choline Chloride 60%) market witnessed a considerable decline in its price chart. The CFR Los Angeles price negotiations fell substantially from $830 per tonne to $780 per tonne between April and June 2023. This represents a decrease of -6% during the quarter. In the US, demand for Vitamin B4 (Choline Chloride 60%) went unexpectedly lower, especially during the second half of the quarter, from the pharmaceutical and nutraceutical industries. Another factor that aided the price decline in the nation was the high level of Vitamin B4 supplied the domestic providers. Inflation in the country has fallen in line with energy prices. However, analysts believe the fall in inflation is only temporary due to ease in supply chain pressures and call it a blip. The country's nutraceuticals market has also shown a mixed pattern of market activity, despite mixed sentiment on the price of vitamins and other dietary supplements.
Asia Pacific
The Asia-Pacific Vitamin B4 (choline chloride 60%) market showed a mixed pattern of price movements in Q2 2023. Prices initially rose from $680/t in April to $700/t in May before falling back to $680/t in June'23. This price decline became quite sustained in the second half of the quarter as demand for vitamin B4 from the downstream pharmaceutical and nutraceutical sectors declined both domestically and internationally. Chinese producers of vitamin B4 (choline chloride 60%) were forced to sell the product at reduced margins due to lower consumer inquiries. China's manufacturing activity contracted for the third consecutive month in June, although at a slower pace, statistics showed. However, manufacturers were still producing stock on the basis of demand. The figures came as pressure mounted on the authorities to reveal better measures to support an economy that has flattened out after a strong first-quarter rebound. June's PMI also revealed a number of imbalances, including continued declines in regional & international demand, an accelerated decline in small business activity, and increasing pressure on pharmaceuticals and dietary supplements.
Europe
In Germany, the domestic Vitamin B4 (Choline Chloride 60%) market remained sluggish in the second quarter of 2023, with price talks at CFR Hamburg falling from $804/t to $705/t from April to June 2023. This demonstrated a decline of -6.7% over the quarter, which was mainly due to reduced demand from downstream industries in the face of high stocks held by suppliers. In April, the price of energy and natural gas fell in Europe to its lowest level since the beginning of the crisis. This undoubtedly helped commerce from Asia, especially China, as optimism for a stronger economic recovery increased. On the other hand, the unemployment rate in Germany rose unexpectedly in June, having a negative impact on the market scenario. Inflation rose again in June, surpassing 6% in Germany. However, the impact on the country's Vitamin B4 (Choline Chloride 60%) industry is yet to be seen. Market participants are still doubtful about the economic situation in the country, as they are in the rest of the world, and are adopting a wait-and-see approach.
For the Quarter Ending March 2023
North America
In the first half of Q1 of 2023, prices for Vitamin B4 in the North American region decreased while market sentiment remained generally optimistic. Due to the ease of import from the Asian market, Vitamin B4 inventories in the local market were becoming critically low as January came closer. According to market sources, the product supply from the downstream food and pharmaceutical industries increased due to weak market dynamics. However, at the end of the quarter, Vitamin B4 prices had fallen to USD 1180/MT, down 11.1% in March as a result of a drop in consumer orders well before the end of the year.
Asia- Pacific
The Vitamin B4 market in the Asia-Pacific region had a weak start to the first quarter of 2023. In January, prices fell as a result of plentiful supply following the spring festival breaks and accelerated manufacturing. However, as the quarter went on, prices started to fall steadily. Due to changes in the cost of production and the price of raw materials, the fluctuating trend of Vitamin B4 was seen. Producers cut their price quotations to roughly 3.3% in the second half of Q4 in an effort to gain orders, but market participants were taking a wait-and-see approach. The significant decline in demand from the end-user pharmaceutical and food sectors as a result of the numerous incidents and the straightforwardness with which many restrictions were put into place in the nation also contributed to the growth of the product. Hence, Vitamin B4 prices in China were evaluated at USD 780/MT in March.
Europe
In contrast to North America and Asia-Pacific, Vitamin B4 prices were observed to fluctuate towards the lower end at the start of Q1 before beginning to rise in January. The supply chain breakdown resulted in Vitamin B4 inventory levels rapidly running low as January approached. Due to the upstream pharmaceutical and food industries' rising demand, Vitamin B4 prices continued to be high in the European region. By the conclusion of the quarter, domestic retailers started destocking their current stockpiles at lower prices due to declining consumer demand. In Germany, Vitamin B4 prices, therefore, decreased from USD 1860/MT in November to USD 1700/MT in March.
For the Quarter Ending December 2022
North America
In the first half of Q4 of 2022, prices for vitamin B4 in the North American region increased to USD 1400/MT, while market sentiment remained generally optimistic. As October drew near, vitamin B4 stocks were getting extremely low in the local market due to a restricted import from the Asian market. Market sources claim that strong market dynamics enhanced demand for the product from the downstream food and pharmaceutical industries. However, at the end of the quarter, vitamin B4 prices had fallen to USD 1385/MT, down 1.1% from December as a result of a drop in consumer orders well before the end of the year.
Asia- Pacific
The Vitamin B4 market in the Asia-Pacific region had a strong start to the fourth quarter of 2022. A price increase of up to 3.4% was seen in October, supported by a lack of supplies over the Golden Week vacation. However, prices started to decline consistently as the quarter proceeded. The fluctuating trend of Vitamin B4 was observed due to variations in its production cost and raw material prices. However, because there was a wait-and-see attitude among market participants, producers reduced their price quotations to about 3.3% in the second half of Q4 in an effort to increase orders. The sharp fall in demand from the end-user pharmaceutical and food sectors as a result of the surge in Covid-19 instances and the implementation of limitations in the country also hindered the product's growth. Hence, Vitamin B4 prices in China were evaluated at USD 1025/MT in December.
Europe
In contrast to North America and Asia-Pacific, Vitamin B4 prices stayed consistent towards the lower end at the start of Q4 before beginning to rise in November. Inventory levels of vitamin B4 were rapidly running out as November drew near because of a breakdown in the supply chain. As a result, the demand for Vitamin B4 from the downstream pharmaceutical and food sector increased in the European region, keeping the prices high. With waning consumer demand by the end of the quarter, domestic retailers began destocking their existing stocks at reduced prices. In Germany, Vitamin B4 prices, therefore, decreased from USD 1890/MT in November to USD 1800/MT in December.
