For the Quarter Ending September 2024
North America
In Q3 2024, the North American Vitamin B5 market experienced significant price escalations, driven by multiple factors affecting market dynamics. The market witnessed an upward trend resulting in a quarter-end price of USD 7850/MT for Vitamin B5 (D-Calpan) CFR New York, representing a 1% increase from the first half of the quarter. This price movement reflected the market's response to various prevailing influences throughout the period.
Key factors contributing to this price surge included supply chain disruptions, shifting consumer preferences, and evolving global trade patterns. The US market demonstrated notable resilience despite facing operational challenges such as disrupted logistics and plant shutdowns. These elements collectively created upward pressure on Vitamin B5 prices, fostering a positive pricing environment in the region.
The market landscape remained dynamic throughout the quarter, characterized by seasonal variations and price correlations. Despite experiencing significant fluctuations, the US market successfully adapted to these evolving conditions, showing its ability to maintain functionality while navigating through various operational and logistical challenges. This adaptive response highlighted the market's resilience in managing multiple external pressures while maintaining operational continuity.
APAC
In Quarter third of 2024, the Asia Pacific region's Vitamin B5 market demonstrated notable price dynamics, with China experiencing significant fluctuations. The quarter concluded with a price of USD 7100/MT for Vitamin B5 (D-Calpan) FOB Shanghai, reflecting a complex interplay of market forces. While the market showed a -1% change from the previous quarter, it recorded a substantial 5% price variation between the first and second half of Q3, highlighting the market's volatility.
Several key factors influenced this pricing trend, including shifting market dynamics, production adjustments, and evolving global demand patterns. The market demonstrated seasonal price impacts, with clear correlations between price changes and market fluctuations. Despite facing challenges such as disruptions and plant shutdowns, the APAC market maintained its momentum through the quarter.
The pricing environment's resilience throughout these fluctuations signalled market stability, particularly in China where the maximum price changes were observed. This adaptability to varying market conditions, combined with the market's ability to maintain operations despite disruptions, indicated a positive outlook for the APAC region's Vitamin B5 market. Coming onto the demand and production, it is safe to say that both remained intact throughout the quarter.
Europe
Throughout Q3 2024, the Europe region experienced a period of stability in Vitamin B5 pricing. This stability was influenced by several key factors, including consistent demand from various industries, balanced supply levels, and minimal disruptions in the supply chain. The market maintained equilibrium due to adequate inventory levels and steady consumer interest in Vitamin B5 products. Seasonal trends and correlations in price changes were also observed, with prices remaining relatively unchanged between the first and second half of the quarter.
Germany, in particular, saw the most significant price changes during this period. The market experienced minor fluctuations, with a slight decrease of 2% from the previous quarter. Despite this, overall trends remained stable, reflecting resilience in the face of economic challenges. The quarter-ending price for Vitamin B5 (D-Calpan) in Germany settled at USD 7980/MT CFR Hamburg, showcasing a consistent and steady pricing environment throughout Q3 2024. The disruptions and plant shutdowns during the quarter had minimal impact on market dynamics, further reinforcing the stability observed in the Vitamin B5 pricing landscape.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Vitamin B5 (D-Calpan) market experienced a relatively stable pricing environment. Several significant factors shaped this stability, primarily supply chain disruptions, plant shutdowns, and fluctuating freight costs. Disruptions in import trade flows from key exporting regions, coupled with elevated freight charges, have exerted upward pressure on prices. The General Rate Increase (GRI) and logistical challenges like the Houthi rebels' attacks in the Red Sea and drought conditions in the Panama Canal further complicated the supply chain, prolonging lead times and increasing operational costs. These factors collectively created a balanced supply-demand dynamic, resulting in stable prices.
Focusing on the USA, the market for Vitamin B5 experienced the most noticeable price changes within North America. Seasonal fluctuations and steady demand from the nutraceutical and pharmaceutical sectors contributed to maintaining prices. The market also witnessed a correlation between price changes and freight costs, as higher transportation expenses were partially offset by ample regional inventories. Despite these challenges, the overall trend remained stable, with no significant deviations between the first and second half of the quarter.
Compared to the previous quarter in 2024, prices saw a slight dip of 3%, suggesting a minor easing of market pressures. However, overall, the sentiment remained balanced as the market adapted to existing variables. The quarter concluded with a stable price of USD 7900/MT for Vitamin B5 (D-Calpan) CFR New York, indicating a cautiously optimistic outlook amid a consistent pricing environment.
Asia Pacific
In Q2 2024, the pricing environment for Vitamin B5 (D-Calpan) in the APAC region has been predominantly negative, influenced by several significant factors leading to a consistent price decline. The quarter observed weakened consumer demand and an oversupply of Vitamin B5 in the market, driven by robust production rates despite faltering end-user needs. Disruptions in global supply chains and increased freight costs further exacerbated the situation, leading to prolonged delivery times and heightened market volatility. Additionally, market participants faced substantial economic uncertainties, including fluctuating energy prices and currency depreciation, which negatively impacted production costs and profit margins.
Focusing exclusively on China, the focal point of the most notable price changes, the Vitamin B5 market remained bearish throughout Q2 2024. Seasonal trends saw a subdued demand across pharmaceutical and nutraceutical sectors, contributing to a persistent inventory glut. The correlation in price changes was evident, with a continuous decline reflecting the broader regional trend. Compared to the same quarter last year, prices depreciated consistently, and the previous quarter in 2024 registered a -1% change in prices. More starkly, the first half of the quarter saw a further -2% reduction compared to the latter half.
The latest quarter-ending price for Vitamin B5 (D-Calpan) FOB Shanghai was USD 6990/MT, underscoring the depreciating sentiment in the market. No major plant shutdowns or disruptions were reported during the quarter, maintaining a stable supply. Overall, the pricing environment for Vitamin B5 in the APAC region during Q2 2024 has been decisively unfavorable, characterized by economic headwinds and an oversupplied market, leading to steadily decreasing prices.
Europe
The second quarter of 2024 has been characterized by a consistent decline in Vitamin B5 prices across the Europe region. A confluence of factors has contributed to this downward trend. Notably, ample stock levels, subdued demand from key end-user sectors such as pharmaceuticals and nutraceuticals, and favorable import prices from major producers like China have all exerted downward pressure on the market. Additionally, disruptions in supply chains, exacerbated by geopolitical conflicts and logistical bottlenecks at major ports, have further strained the market, leading to reduced procurement activity. In particular, plant shutdowns at significant production hubs have intensified the supply glut, compelling suppliers to lower prices to clear excess inventory.
Germany experienced the most pronounced price changes, reflecting broader regional trends. The overall sentiment in the German market has been negative, with prices consistently falling due to high stock levels and limited demand. Seasonality and market dynamics have aligned to create a challenging pricing environment, with a recorded -4% change from the previous quarter. As the quarter concluded, the price of Vitamin B5 (D-Calpan) in Germany settled at USD 8090/MT CFR Hamburg, marking a stark reflection of the negative pricing environment that has dominated the market.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Vitamin B5 (D-Calpan) market in North America faced pricing challenges, with prices shifting throughout the period. Prices for Vitamin B5 (D-Calpan) in the USA saw a slight decrease, moving from $8200/mt in January to $8020/mt in March. This decline was relatively minor compared to the larger drops seen in previous quarters. The reduced demand from international markets and an oversupply from local providers contributed to this trend. The market in the USA showed an imbalance between supply and demand, with better consumer spending over the holiday season and consistent wage growth supporting the US economy's positive momentum. Despite this, the decreased demand for Vitamin B5 (D-Calpan) led to an excess supply and subsequent price reductions.
Shipments between China, a major producer, and the U.S., a primary importer, were paused during the Chinese Lunar New Year in mid-February. While there were expectations of increased demand for nutraceuticals like Vitamin B5 (D-Calpan) after the holiday in China, the anticipated boost in the U.S. didn't materialize as projected by industry experts. However, demand remained consistent in the U.S. through the first half of Q1 due to fresh supplies from local suppliers. As prices started to drop in March, factors contributing to this included reduced demand from the pharmaceutical and nutraceutical sectors, as well as lower freight costs. This decreased demand aligned with an oversupply from domestic sources, adding complexity to the market dynamics. A diminished interest from Asian markets, especially China, also played a role in the price decline.
In summary, the Vitamin B5 pricing landscape in the USA during Q1 2024 was marked by volatility. Price fluctuations were driven by supply and demand imbalances, supply chain disruptions, and shifting consumer sentiment.
APAC
In the first quarter of 2024, the Vitamin B5 (D-Calpan) market in the Asia-Pacific (APAC) region, with a focus on China, saw modest growth. Prices in China rose slightly from $7050 per metric ton in January to $7220 per metric ton Ex-Shanghai in February, before settling at $7130/mt in March. This stable trend in March marked a significant improvement from the challenges faced in the fourth quarter of 2023, which included weak demand from consumers, limited new inquiries, and surplus inventory.
Starting from mid-January 2024, demand began to improve consistently and maintained momentum through March, indicating a recovery in market sentiment. The first quarter of 2024 showed notable progress with increasing prices, indicating a more balanced supply-demand relationship. This upward trend enabled participants in the Chinese market to sustain healthy profit margins throughout the quarter. However, the growth rate decelerated by a margin in March, with prices seeing a minor dip. Even during the Lunar Chinese New Year holidays, the domestic Vitamin B5 (D-Calpan) market remained robust, backed by strong manufacturing activities leading up to the holiday and the availability of fresh stock. Moreover, international demand for Vitamin B5 (D-Calpan), particularly from the pharmaceutical and other sectors, complicated the supply-demand dynamics and influenced market trends as the quarter progressed.
Despite challenges like dwindling consumer confidence, deflationary trends, youth unemployment, reduced exports, and a decline in foreign investments, China's manufacturing sector showed resilience. The domestic Vitamin B5 (D-Calpan) market in China saw significant improvements, marked by an uptick in demand and manufacturing output.
Europe
During the first quarter of 2024, the Vitamin B5 (D-Calpan) market in Europe displayed a steady pricing scenario influenced by multiple factors. Overall, the market showed relative stability with moderate price fluctuations and no major shocks. A closer look at Vitamin B5 (D-Calpan) prices in Germany during this period indicated positive shifts compared to previous quarters. The relationship between prices and market conditions remained steady throughout the quarter. As Europe's largest market for Vitamin B5 (D-Calpan), Germany witnessed both upward and downward price movements. Prices rose from $8500/mt in January to $8570/mt in February before dropping to $8300/mt in March CFR Hamburg. This stability was bolstered by consistent demand and increased import costs from China.
The European economy faced uncertainties during this timeframe, including rising energy prices and interest rate hikes. These elements created a delicate market backdrop for Vitamin B5 (D-Calpan), making price stabilization efforts more challenging. Until mid-February, various factors influenced Vitamin B5 (D-Calpan) prices in Germany. Increasing import costs from China, amplified by disruptions in the Red Sea and the Chinese New Year festivities, put upward pressure on prices. Additionally, fluctuations in currency exchange rates, such as the Euro's decline against the USD, added to the financial hurdles for German importers.
In March, prices saw a slight dip due to abundant supply and diminished demand. In summary, the Vitamin market in Germany during Q1 2024 was shaped by factors including inflation, federal taxes, supply chain disruptions, and rising energy costs.
For the Quarter Ending December 2023
North America:
The final quarter of 2023 presented challenges for the Vitamin B5 market in North America, marked by a significant decline in pricing. The market experienced stability in overall activity, mainly attributed to an imbalance between the supply and demand for Vitamin B5 (D-Calpan), along with a reduction in manufacturing operations. Despite an uptick in both US and wholesale stocks the previous month, an excess supply of Vitamin B5 (D-Calpan) hindered demand expansion.
The industry grappled with diminishing demand for various commodities, including nutraceuticals, influenced by increased interest rates and changes in consumer confidence. Vitamin B5 (D-Calpan) prices commenced the quarter at $11,020/MT and concluded at $8,600/MT CFR New York, indicating a considerable decrease. Additionally, the US manufacturing sector experienced limited activity, resulting in a decline in factory jobs. As the quarter concluded, the performance of the US economy in 2023 was deemed "remarkable." Despite concerns regarding inflation control and potential job losses, the US economy successfully avoided a recession and demonstrated accelerated growth.
APAC:
The Vitamin B5 (D-Calpan) market in the Asia-Pacific area shown noteworthy fluctuations in the fourth quarter of 2023, as a downward price trajectory for Vitamin B5 (D-Calpan) was seen in China. This was mostly caused by a market imbalance brought on by a decline in demand in the pharmaceutical and nutraceutical industries throughout the quarter. The nutraceutical market in India also mimicked the same declining trend due to diminished consumer confidence, uneven economic conditions, lowered output, and lesser favorable business opportunities. China had significant price reductions in spite of increased production levels, which were ascribed to weak demand both locally and globally. The decline in demand for Vitamin B5 (D-Calpan) from China's nutraceutical and pharmaceutical industries was highlighted in the first part of the quarter by a dearth of new enquiries from international markets. Prices for vitamin B5 (D-Calpan) in China decreased from $8,550/MT to $7,300/MT FOB-Shanghai between October and December. In December, China's economy showed signs of progress, with the Purchasing Managers' Index (PMI) rising and consumer confidence rising in tandem with a slow but steady rebound in prices.
Europe:
The European market for Vitamin B5 (D-Calpan) saw a decrease in price in the fourth quarter of 2023. Due to domestic businesses holding significant inventories to meet demand and allay fears of possible shortages before the December holiday season, the market was negatively impacted by excessive supply levels. Additionally, the low end-user demand and the abundance of Vitamin B5 (D-Calpan) on the local market had a big role in driving down the price. The price of Vitamin B5 on the German market dropped from USD 9700/MT to $8750/MT CFR Hamburg between October and December. The month-over-month decline in demand from Germany's downstream sectors was mostly caused by large inventories held by local businesses, even in the face of negligible changes in market conditions. China, a significant exporter, had a substantial impact on these market dynamics by bringing down the price of vitamin B5 (D-Calpan). As a result, German importers were able to take advantage of lower costs when obtaining Vitamin B5 (D-Calpan) supplements, which in turn caused prices in the local market to drop. Furthermore, the deficiency of fresh inquiries from end-user sectors across the country, like pharmaceuticals and nutraceuticals, forced local vendors to mark down the product's price.
For the Quarter Ending September 2023
North America
The third quarter of 2023 witnessed a precipitous fall in the price of Vitamin B5 (USP grade) in the US; from July to September, CFR New York values dropped from $16650/mt to $11800/mt, signaling an unfavorable conclusion to the quarter. The main reasons for the sharp price fall of vitamin B5 in the US market were the very low downstream demand and the large supply that market participants had on hand. The US economy's expansion during the quarter alarmed the Federal Reserve since it projected that inflationary pressures might worsen. According to statistics, the US manufacturing sector fell in July for the ninth consecutive month as a result of businesses reducing workers and production in response to a decline in new orders. Because there were enough stocks available in the domestic market in Q3, local providers focused less on importing the product from China. Fed assistance has benefited from the Soft-Landing summer in the United States as a number of positive economic indicators that were discovered later in the second half, raising expectations that the US economy might avoid the recession that many had forecast.
Asia Pacific
The 3rd quarter of 2023 saw an overall decrease in Vitamin B5 price values in the Chinese local market; from July to September, negotiations saw a drop from $14500/mt to $10000/mt FOB Shanghai. The main contributors of this price decline have been the incredibly low demand from the Pharma and Nutra industries in both domestic and foreign markets, as well as the significant stock availability from local suppliers. Throughout the time frame, there were no fresh inquiries, which is why there was low production output. The second-largest economy in the world grew more slowly than anticipated in the first half of 2023 as a result of growing deflation, high unemployment, and weak international demand. China's golden week off in late September had little to no impact on the country's Vitamin B5 market, as compared to other supplements, vitamin B5 prices remained comparatively cheap. However, Export of the nutraceuticals, especially Vitamin B5, influenced both domestic and foreign markets during the last few weeks of the September due to the strengthening of the Yuan and the falling value of the US dollar.
Europe
The market trends for Vitamin B5 in Europe were similar to those in North America and Asia, with prices falling significantly in Germany as well during Q3 2023. The providers of Vitamin B5 lowered their bids throughout the quarter because they had more inventory than was needed to meet the overall demand. Prices have decreased from $16400/mt to $10900/mt CFR Hamburg between July and September, indicating a downtrend. In the 3rd quarter of 2023, German distributors and manufacturers of nutraceuticals started to report precipitous drops in new orders, production, and factory pricing for vitamin B5, indicating a severely collapsed market. Consumers were patient, which ultimately resulted in aggregate stock levels and showed that there wasn't much of a market for several commodities, including vitamin B5. The geopolitical tensions, stricter banking rules, and economic uncertainty all contributed to the decline in demand overall. According to PMI numbers, the private sector shrank in September across the Eurozone, even though the composite score rose slightly from 46.7 in August to 47.1. The European Central Bank raised interest rates twice this quarter.
For the Quarter Ending June 2023
North America
In North America, the domestic Vitamin B5 (D- Calpan) market witnessed a stagnancy in its price chart during the second quarter of 2023. The CFR New York price negotiations fell by a margin from $19500 per tonne to $18600 per tonne between April and June 2023, representing a decline of -4.6% over the quarter. In the second half of quarter 2, demand from end-user pharmaceutical and nutraceutical industries for Vitamin B5 (D-Calpan) in the United States weakened somewhat. Another factor supporting price reductions in the country was the abundant supply of vitamin B5 (D-Calpan) from domestic suppliers, which led them to lower their price offers. Inflation in the country has fallen in line with energy prices. However, analysts believe that the fall in inflation is temporary due to the easing of supply chain pressures and have described it as a glitch. Despite mixed sentiment on the price of vitamins and other dietary supplements, the country's nutraceuticals market has also shown a mixed pattern of market activity.
Asia Pacific
The Asia-Pacific Vitamin B5 (D- Calpan) market showed a mixed pattern of price movements in Q2 2023. Prices initially rose from $17500/t in April to $18000/t in May, before falling back to $17400/t in June'23. This price decline became quite sustained from the beginning of June due to the fall in demand from the downstream pharmaceutical and nutraceutical sectors declined both domestically and internationally. Chinese producers of Vitamin B5 (D- Calpan) were forced to sell the product at reduced margins due to lower consumer enquiries. China's manufacturing activity contracted for the third consecutive month in June, although at a slower pace, as per the stats. However, domestic producers were still generating 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 & foreign demand, an accelerated decline in small business activity and increasing pressure on the pharmaceuticals and dietary supplements sector.
Europe
In Germany, the domestic Vitamin B5 (D- Calpan) market displayed bullish sentiments in the second quarter of 2023, with price talks at CFR Hamburg escalating from $18000/t to $18300/t from April to June 2023. This demonstrated an incline of 1.7% over the quarter, which was mainly due to sustained demand from the nutra and pharma industries in the face of moderate 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. However, the German unemployment rate unexpectedly rose in June, negatively impacting the market scenario, and inflation rose again in June to over 6% in Germany. The impact on the B5 (D-Calpan) industry remains unclear. Market participants still have doubts about the economic situation in the country, as in the rest of the world, and are adopting a wait-and-see attitude.
