For the Quarter Ending September 2024
North America
The third quarter of 2024 for the North American Vitamin E market exhibited a notable bullish trend, characterized by significant price volatility following global market perturbations post the August incident. A substantial year-over-year price appreciation of 21% was observed compared to Q3 2023, indicating robust market dynamics. Quantitative analysis reveals Vitamin E 50% CWS Grade prices escalated from USD 17,600/MT FOB Illinois in July to USD 22,000/MT in September. Multiple market variables contributed to this price trajectory, encompassing supply-side constraints, elevated global demand coefficients, geopolitical market perturbations, and logistics sector inefficiencies.
The BASF facility incident in Germany (August 2024) precipitated significant disruptions in the global Vitamin E supply matrix, with substantial repercussions manifesting in the U.S. market. Given BASF's position as a primary global producer, the operational disruption resulted in immediate capacity constraints, triggering acute supply shortages. This supply-demand equilibrium destabilization rapidly translated into heightened price volatility across global markets, including the U.S.
The U.S. market experienced notable challenges as manufacturers addressed acute supply constraints. Critical industrial sectors, including nutritional supplements, cosmetics manufacturing, and pharmaceutical production, encountered elevated production cost metrics and potential raw material procurement challenges. Market participants initiated alternative supplier sourcing protocols, frequently at premium price points. This market event highlighted supply chain vulnerability metrics within the U.S. industrial sector, catalyzing comprehensive reevaluation of operational protocols and emphasizing the necessity for enhanced supply chain resilience optimization strategies.
APAC
The APAC region's Vitamin E market demonstrated substantial price appreciation during Q3 2024, influenced by multiple market variables. Supply matrix constraints, primarily attributed to the industrial disruption at BASF's facility, resulted in inventory optimization challenges and heightened demand coefficients. These supply-side perturbations, combined with robust demand dynamics across industrial sectors including cosmetics, nutraceuticals, and pharmaceutical manufacturing, contributed to significant price escalation trajectories.
The Chinese market exhibited particularly notable price volatility metrics, representative of the region's bullish market conditions. Early September data indicates unprecedented market turbulence, with price appreciation approximating 25%, correlating directly with global supply chain perturbations following the BASF facility incident. The market dynamics were further exacerbated by seasonal disruptions, specifically Typhoon Bebinca's impact on Shanghai's logistics infrastructure in late September, creating compound supply-side constraints.
Quantitative analysis reveals Vitamin E 50% CWS prices demonstrated significant escalation from USD 13,000/MT to USD 19,000/MT FOB Qingdao from July to September. This price trajectory was primarily driven by: Global market volatility coefficients, enhanced international demand metrics and critical inventory constraints. The cumulative effect of port operational disruptions and industrial sector deceleration has amplified the supply chain perturbations, impacting both Vitamin E and associated commodity markets within China's trading dynamics. This confluence of factors has created unprecedented market conditions, characterized by extreme price volatility and supply uncertainty.
Europe
The European Vitamin E market exhibited substantial price appreciation during Q3 2024, driven by multiple market variables. Demand escalation across industrial sectors, including pharmaceuticals, cosmetics, and nutraceutical manufacturing, emerged as a primary price determinant. Supply matrix disruptions, particularly within key production hubs, contributed to supply-demand equilibrium destabilization, resulting in upward price trajectories. Additionally, logistics sector inefficiencies introduced supplementary cost variables, amplifying the overall price appreciation dynamics.
The German market experienced particularly acute challenges following the BASF facility incident in August 2024, which precipitated significant disruptions in the global Vitamin E supply. Given BASF's position as a primary global producer, the operational disruption resulted in immediate capacity constraints, triggering acute supply shortages. This supply-side constraint rapidly translated into heightened price volatility across industrial sectors within Germany and global markets. The event's impact was particularly pronounced in the European context. The market disruption highlighted the interconnected nature of global supply chains and their susceptibility to localized industrial perturbations, resulting in widespread price volatility and supply uncertainty across European markets.
Market participants initiated alternative supplier sourcing protocols, necessitating procurement at premium price points. This supply chain perturbation highlighted systemic vulnerabilities within the global supply matrix and their consequent impact on German market dynamics. Prices in September were settled around $21000 per MT CFR Hamburg.
For the Quarter Ending June 2024
North America
The second quarter of 2024 proved exceptionally favourable for the Vitamin E market in North America, marked by a stable pricing trend. This quarter witnessed a convergence of factors that significantly supported market prices, primarily driven by a supply shortage that struggled to fluctuating demand levels.
Limited inventory held by domestic suppliers, coupled with increased procurement from international markets, played a crucial role in elevating prices. Furthermore, improvements in the supply chain, particularly streamlined logistics and reduced lead times for imports, contributed to the market's positive momentum.
The USA experienced price stability within the region. Market trends revealed a stagnancy in Vitamin E prices, influenced by insufficient stock and higher-than-anticipated demand from key sectors such as pharmaceuticals and nutraceuticals. Seasonality also benefited the market, with increased purchasing activities typical during this period. The correlation in price changes was evident as market participants adjusted their pricing strategies in response to low inventory levels and improved supply chain efficiency.
As the quarter concluded, the price of Vitamin E 50% CWS FOB Illinois reached a peak of USD 17,290 per metric ton. Overall, the pricing environment throughout Q2 2024 was predominantly positive, characterized by limited supply, logistical improvements, and robust demand, all contributing to a persistent increase in market prices.
Asia Pacific
The second quarter of 2024 has seen a consistent decline in Vitamin E prices across the APAC region, driven by several notable factors. Primarily, the oversupply of Vitamin E, coupled with subdued demand from both domestic and international markets, exerted significant downward pressure on prices. Market participants continued to grapple with elevated production costs, mainly stemming from high energy prices, which, despite increasing overheads, did not translate into higher consumer prices due to the weak market demand. The persistence of this supply-demand imbalance has been a critical determinant in the overall price depreciation witnessed during this quarter.
Focusing on China, the country has experienced the most pronounced price changes in the APAC region. The overall trend for Vitamin E prices in China has been distinctly negative, reflecting a -15% decline from the same quarter last year. Seasonality factors, particularly the post-Lunar New Year period, also contributed to the sluggish demand, exacerbating the price decline. The quarter closed with Vitamin E 50% CWS prices settling at USD 12400/MT FOB Qingdao in China. This price point encapsulates the overall negative pricing environment marked by an excess supply and tepid consumer demand, leaving market sentiment decidedly pessimistic for the period.
Europe
The Vitamin E market in Europe also experienced a notable downtrend in Q2 2024, primarily driven by several critical factors. The quarter was characterized by a confluence of declining demand from key sectors such as nutraceuticals and pharmaceuticals, coupled with improved supply chain conditions. The availability of Vitamin E stockpiles, especially from major Asian exporters, led to competitive pricing pressures. Additionally, the easing of global trade disruptions and reduced freight costs contributed to the downward price adjustments. Economic factors, including a slight recovery in inflation and improved consumer confidence, partially offset the downward momentum but were not sufficient to reverse the overall trend.
In Germany, the epicentre of the price volatility, the Vitamin E market saw a significant shift. The market exhibited a clear downtrend, with prices reducing by 6% compared to the same quarter last year, reflecting a substantial correction. Despite a modest 2% uptick from the previous quarter in 2024, the overall sentiment remained negative. Seasonal factors, such as reduced consumption during warmer months and ample inventory levels, exacerbated the price decrease. Conclusively, the quarter ended with Vitamin E 50% CWS CFR Hamburg prices at USD 15080/MT. The pricing environment in Q2 2024 reflected a predominantly negative sentiment, driven by an overabundance of supply and stabilizing trade conditions, overshadowing any minor demand recovery.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, Vitamin E 50% CWS prices in the North American market displayed a mixed pattern. Several factors contributed to this fluctuation, resulting in an overall contemplation in price trends. Notably, in the USA, prices initially rose until mid-quarter, followed by a decline in March. After dropping from $16,770/mt in January to $16,700/mt FOB Illinois by March, Vitamin E 50% CWS prices rose to $17,100/mt in February. Market conditions were influenced by shifting demand, product availability, rising freight costs, and reduced imports from Asia. To address these challenges, U.S. authorities collaborated with industry partners to improve real-time monitoring of freight movements, particularly focusing on nutraceutical shipments from China.
The conclusion of 2023 witnessed disruptions in supply chains and trade due to security issues in the Red Sea, leading to significant increases in freight charges. These disruptions impacted trade routes, causing congestion at U.S. ports and disruptions in the Panama Canal, thereby influencing commodity prices. During the Chinese Lunar New Year holidays in mid-February, shipments were temporarily suspended. Despite expectations of increased demand for nutraceuticals, including Vitamin E, after the post-holiday market recovery in China, the anticipated rise in the U.S. did not materialize as forecasted. However, demand in the U.S. remained steady until the latter part of Q1, supported by new stocks from local suppliers.
Following ample supply, U.S. suppliers then reduced their price quotes and narrowed their profit margins in March. As prices began to decline in March, reduced demand from the pharmaceutical and nutraceutical sectors, coupled with decreasing freight charges, played a significant role. This decreased demand coincided with an oversupply of Vitamin E from domestic sources, further complicating market dynamics. Additionally, diminished interest from Asian markets, notably China, also contributed to the price depreciation.
APAC
During the first quarter of 2024, the Vitamin E market in the Asia-Pacific (APAC) region, especially in China, witnessed significant growth. Prices for the 50% CWS grade surged from $13,000 per metric ton in January to $13,840 per metric ton FOB Qingdao by March. This positive momentum represented a notable recovery from the challenges encountered in the fourth quarter of 2023, which included subdued demand, limited new inquiries, and excess inventory. However, starting from mid-January 2024, demand began to increase steadily and sustained momentum through March, signaling a revival in market sentiment.
The first quarter of 2024 showcased substantial improvement with increasing prices, reflecting a more balanced supply-demand relationship. This upward trajectory allowed participants in the Chinese market to maintain robust profit margins throughout the quarter. Even during the Lunar Chinese New Year holidays, the domestic Vitamin E market remained resilient, bolstered by strong manufacturing activities and the availability of fresh inventory. Additionally, the global demand for Vitamin E, especially from the pharmaceutical and other sectors, added complexity to the supply-demand dynamics, further shaping market trends.
Despite facing challenges such as declining consumer confidence, deflationary pressures, youth unemployment, reduced exports, and a drop in foreign investment, China's manufacturing output demonstrated resilience. The Vitamin E market in China experienced significant improvements, marked by an increase in demand and manufacturing output. During the latter part of the quarter, demand from international end-user industries started to climb, even amidst supply chain disruptions. Domestic sellers and traders seized this opportunity, achieving healthy profit margins despite the prevailing challenges.
Europe
During the first quarter of 2024, the Vitamin E market in Europe presented a positive pricing landscape, influenced by a variety of factors. Overall, the market maintained an upward trend throughout the period. Analyzing the trend and seasonality of Vitamin E prices in Germany in the fourth quarter of 2023 revealed no major deviations compared to the previous year. The correlation between prices and market conditions remained relatively consistent throughout the quarter. As Europe's largest Vitamin E market, Germany witnessed fluctuating price trends for the 50% CWS grade. Prices initially dipped to $14,400/mt in January and then surged to $15,100/mt by March CFR Hamburg. Despite disruptions in supplies from Asia, this stability was maintained by consistent demand.
The European economy encountered uncertainties during this period, including surging energy costs and the implementation of interest rate hikes. These elements created a fragile market environment for Vitamin E, complicating efforts to stabilize prices. Until mid-February, various factors influenced Vitamin E prices in Germany. Rising import costs from China, exacerbated by disruptions in the Red Sea and Chinese New Year celebrations, exerted pressure on prices. Additionally, currency exchange rate fluctuations, such as the Euro's depreciation against the USD, added to the financial challenges faced by German importers.
In summary, the Vitamin E market in Germany was shaped by factors such as inflation, federal taxes, supply chain disruptions, and escalating energy costs.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Vitamin E market demonstrated a declining price trend, which was attributed to a decrease in end-user demand from the nutraceutical and pharmaceutical industries as well as diminished consumer confidence. The market was characterized by instability and an overabundance of the Vitamin E supplement on domestic retailers' shelves.
Vitamin E 50% CWS prices were $18500/MT at the beginning of the quarter 4 and fell to $17040/MT FOB Illinois by the end of the quarter. Few Vitamins showed any upward movement, according to analysts, and many were still in the consolidation stage. Q4 2023 import levels exceeded Q4 2022 numbers, indicating that shops might have finished destocking and were getting ready for the Christmas season in December.
At the end of the quarter, the US economy for 2023 was called "remarkable." The US economy avoided a recession and showed overall faster growth, despite worries about controlling inflation and preventing significant job losses. The Vitamin E business experienced price hikes in the latter weeks of December due to the favorable impact of increased consumer demand in the United States and also because of surged freight charges potentially impacted by Israel-Hamas conflict.
APAC
The Vitamin E market in the Asia-Pacific region demonstrated a range of patterns in the fourth quarter of 2023, with some items seeing price rises and others seeing decreases. Overall, Q4 2023 saw a minor fall in the price of vitamin E, with the chart remaining pretty constant. Higher vitamin E prices were observed throughout the Asia Pacific area, including China and India, in the latter part of the quarter due to improved offtakes and export pricing. Nevertheless, there was an imbalance in the market as a result of a decline in demand from the pharmaceutical and nutraceutical industries, particularly in November. On the other hand, stronger economic conditions, higher production levels, and a greater number of new business inflows led to the expansion of the nutraceutical market in India. Although production was expanded, there were notable price decreases in China because to sluggish worldwide demand. A second indication of the fall in Vitamin E off-takes in China's end-user pharmaceutical and nutraceutical sectors was the lack of fresh inquiries from local or overseas markets during the first half of the quarter. October through December saw a drop in Vitamin E 50% CWS prices from $13800/MT to $12300/MT FOB Qingdao. Improvements in the PMI and increased consumer confidence, along with a slow but steady increase in prices, brought attention to China's economy in December. In China, the nutraceutical market saw mixed results for the year, with certain product categories experiencing declines and others experiencing recoveries. Notably, the market for Vitamin E showed signs of improvement, with its price trend showing appreciation and a strong finish to the year.
Europe
During the 4th quarter of 2023, the European Vitamin E market exhibited a downward trend. The market was negatively impacted by high supply levels, as domestic businesses maintained substantial inventories to meet demand and mitigate concerns of potential shortages ahead of the December holiday season. The overall downward price trend was also influenced by declining energy prices. Moreover, decreased end-user demand and the sufficient availability of Vitamin E in the domestic market were key factors contributing to the cost reduction. However, by December, Vitamin E 50% CWS prices were reported at USD 13,400/MT CFR Hamburg, reflecting a significant decline of more than 5% from November in the German market by the end of the quarter. The decrease in demand from Germany's downstream industries over the course of the month was primarily driven by the significant stockpiles maintained by domestic companies, despite minimal shifts in market dynamics. A major influencing factor in these market dynamics was China, a major exporter, which lowered the price of Vitamin E 50% CWS. Consequently, German importers benefited from reduced prices when acquiring Vitamin E 50% CWS supplements, leading to a corresponding decrease in prices within the local market. Additionally, the lack or minimal occurrence of fresh inquiries from end-user industries such as nutraceuticals and pharmaceuticals nationwide prompted local sellers to offer the product at comparatively lower prices.
For the Quarter Ending September 2023
North America
The third quarter of 2023 ended on a positive one for Vitamin E prices in the US, which increased somewhat from $18650/mt to $18740/mt from July to September. Throughout the quarter, the domestic market for this nutraceutical oscillated upward due to the positive demand for Vitamin E from the end-user pharmaceutical and nutraceutical industries. The most obvious cause of the upward trend in vitamin E prices is low to moderate inventory levels, which only compelled vendors to raise their offers each month. Due to changes in exchange rates between the US dollar and the yuan, the cost of importing nutraceuticals rose in the second half of the quarter. The recovery of the US economy resulted in a minor slowdown in inflation in the third quarter, but market investors were nevertheless alert due to the Fed's interest rate hikes. Warehouse utilization, pricing, and inventory levels all sharply increased in the United States starting in the first week of July. Because of this, the cost of inventory and storage increased, driving up the price of items like Vitamin E. Lastly, prices grew further as Chinese producers responded to rising demand from outside, especially the US, in the run-up to China's Golden Week and Mid-Autumn Festival in early October. Despite a slight increase in August, the inflation rate is still trending lower.
Asia Pacific
In Q3 2023, The price of Vitamin E 50% CWS in China's domestic market dropped from $14300/mt to $13550/mt from July to September, defying the US market trend and suggesting a small breakdown in the price talks. Due to high unemployment, diminishing deflation, and sluggish overseas demand, the second-largest economy in the world developed slowly in 2023 and had a rough start to the third quarter of the year. The primary causes of this pricing shift were low to moderate consumption in the domestic and foreign pharmaceutical and nutraceutical industries as well as high stock availability from local suppliers. There were very modest amounts of fresh inquiries during the quarter. China's Golden Week in the final week of September had little to no effect on the nation's Vitamin E market, as prices stayed low for all grades, in contrast to other nutraceuticals. In terms of stocks, market participants maintained moderate supplies because manufacturing production stayed constant during the period, having satisfied overall demand.
Europe
In Europe - Vitamin E pricing values decreased in Germany to $15100/mt CFR Hamburg in September after starting the third quarter of 2023 at $15700/mt in July, denoting a bearish trend. Over the course of the quarter, an excess of inventory levels that have satisfied the overall demand has been the main factor forcing Vitamin E suppliers to lower their quotations. Industry experts stated that at the beginning of the quarter, glitches were still there in the German manufacturing sector. Manufacturers of nutraceuticals reported decreases in factory pricing, production, and new orders. There was a poor demand for all commodities, including nutraceuticals, as evidenced by the fact that customers were holding out and lowering stock levels over the course of the time period. The geopolitical environment, tighter financial circumstances, and economic uncertainty all contributed to the drop in demand. Fresh orders entering into the country and consuming activities were also reported to be down among retailers and service providers throughout the quarter. Furthermore, rising interest rates and inflation eroded consumer confidence, leading in a drop in demand for Vitamin E. German government raised interest rates twice this quarter alone.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, the North American domestic Vitamin E market displayed an unfavorable price trend. The FOB Illinois price fell from $19,000 per tonne to $18,500 per tonne between April and June 2023. This represents a decrease of -2.6% over the quarter. In the US, demand for Vitamin E 50% CWS was lower as end-users in the pharmaceutical and nutraceutical industries were well stocked. 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. The country's nutraceuticals market has shown a mixed pattern of market activity, despite mixed sentiment on the price of vitamins and other dietary supplements. Meanwhile, rising pay for the country's workforce could continue to fuel inflation. This is likely to lead the Fed to raise interest rates again in July. However, the state of the US economy is still unknown, and market participants in end-user industries continue to adopt a wait-and-see approach.
Asia Pacific
In Q2 2023, the Asia-Pacific vitamin E market showed a weakening price trend, as discussions for FOB Shanghai, China, fell from $14790/tonne to $14600/tonne between April and June 2023. This price decline became quite sustained from the first half of the second quarter of 2023, as demand for vitamin E from the downstream pharmaceutical and nutraceutical sectors, both domestically and internationally, declined. Chinese vitamin E producers were compelled to sell the product at reduced margins due to lower demand and consumer inquiries. The statistics showed that China's manufacturing activity contracted for the third month in a row in June, although at a slower pace. The figures come as pressure increases on the authorities to release more stimulus to support an economy that has flattened out after an initially strong post-COVID recovery in the first quarter. The June PMI also revealed a number of imbalances and weaknesses, including a continued decline in both domestic and external demand, an accelerated decline in small business activities, and increasing pressure on the pharmaceutical and dietary supplements industries.
Europe
In Germany, the domestic Vitamin E market was bearish in the second quarter of 2023, with price talks at CFR Hamburg falling from $16,500/t to $16,000/t from April to June 2023. The decline in prices in the German market is mainly due to reduced demand from downstream industries in the face of high stocks held by suppliers. In April, the price of natural gas for energy purposes in Europe fell to its lowest level since the beginning of the crisis. This undoubtedly helped trade from Asia as optimism for a stronger economic recovery increased. On the other hand, the unemployment rate in Germany rose more than expected in June and had a negative impact on the market scenario. In order to avoid potential shortages in the future, retailers have been stockpiling vitamin E, so they have lowered their price margins later in the quarter to reduce their inventories. German inflation rose again in June by more than 6%. However, the impact on the country's vitamin E industry has not yet been seen. Market participants are still skeptical about the economic situation in the country, as they are in the rest of the world and are treading water.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the price trend for Vitamin E in both grades remained bullish, with FOB Illinois for 50% CWS prices ending up at $18940 per MT in January and $19250 per MT in March, respectively. Industry players had predicted that the pharmaceutical and nutraceuticals industries would continue to sail through mixed sentiments during the first quarter of 2023 as a result of the market turbulence in the previous quarter. However, consistent end-user demand and moderate inquiries from downstream nutraceutical providers kept the market dynamics patterned. The first half of the quarter benefited from China's easing of its zero-covid ban since the supply chain and trade remained healthy, which further led to a decrease in freight costs.
Asia Pacific
In the Asia Pacific region, China's decision to remove the strict COVID-19 restrictions in the first week of January provided the trillion-dollar economy in the Asia Pacific region—which had suffered greatly over the previous four years—a fresh start. As a result, China saw a moderately positive first quarter of 2023. In the first three months of 2023, there was little change in the FOB Qingdao pricing pattern in the domestic Chinese market, with prices stabilizing at $14738 per MT in January and $15000 per MT in March. After a week-long Lunar holiday, the price of Vitamin E in the local market for nutraceuticals and pharmaceuticals experienced a roll-over sentiment for two consecutive weeks in January. The second part of the quarter's rise in market activity in China can be largely attributed to low inventories and high demand.
Europe
The first quarter saw an increase in orders and shipments from both domestic and foreign markets, which helped the nutraceutical industries in Europe get off to a positive start. Over the course of the first three months of 2023, the price of Vitamin E climbed albeit marginally, going from $16400/MT in January to $16630/MT in March CFR Hamburg. Due to the favorable prognosis for supply and demand this quarter, participants in the local market observed successful arbitrage throughout the vast majority of the period. While the European market appeared to be on the right track, the unexpected reopening of China's COVID and the protracted conflict between Russia and Ukraine decreased inflation pressures.
For the Quarter Ending December 2022
North America
As a result of ongoing market volatility in the U.S., Vitamin E prices continued to fall in the fourth quarter of 2022, with FOB Illinois prices decreasing from $20750/MT to $20030/MT from October to December. Due to the Golden Week break, imports from China were restricted during the first week of October 2022. Several domestic merchants had to up their price bids to keep up with the demand. For the majority of the quarter, unstable supply chains were put in jeopardy by China's Covid lockdowns, Russia's crisis in Ukraine, rising U.S. inflation, and extreme weather. The U.S. supply chain gradually improved in the second half of 2022 as the economy started to expand, and the ports experienced a significant drop in ship backlogs following a protracted port backlog. Demand-wise, offtakes in the end-user industries remained steady throughout the quarter.
Asia Pacific
The domestic Vitamin E market in China started to show signs of contraction during the fourth quarter of 2022, with FOB Shanghai values falling from $16090/MT to $15290/MT from October to December. Due to the closure of industrial facilities for the Golden Week during the first week of October, China's Vitamins manufacturing sector experienced a continuous fall and the lowest export orders. It was challenging for the market to catch up to the small rise recorded in some downstream industries during the first part of Q4 due to the diversity of contradicting signals that Chinese traders dealing with the return from the Golden Week holiday had to contend with. Large stocks on their shelves enabled domestic suppliers and producers to satisfy all domestic demand for the whole quarter. The administration changed its zero-covid regulations in response to protests and widespread unrest in the nation, which once more made the nation susceptible.
Europe
In the fourth quarter of 2022, the European Vitamin E market continued to shrink, with CFR Hamburg values dropping to $17090 MT in December from $16459/mt in October. Germany's industrial production increased slightly in October despite rising energy costs and supply-chain hiccups. However, the COVID-19 issues, as well as the circumstances in Russia and Ukraine, all continued to have a detrimental effect on productivity. Demand-wise, the end-user industries saw favorable offtakes, while the pharmaceutical and nutraceutical businesses struggled as a result of rising raw material and energy costs.
For the Quarter Ending September 2022
North America
Vitamin E prices in the United States began to decline in the third quarter of 2022, with values falling from $22400 per MT to $19800 per MT FOB Illinois from July to September. Due to China's intermittent lockdowns, downstream demand in the US decreased during the quarter. Imports into the US were significantly curtailed from the last week of July due to several Chinese manufacturing sites that were closed for maintenance. This had a substantial impact on the domestic market's dropping demand and downward pricing trend in the latter weeks of the third quarter.
Asia Pacific
The price trend for Vitamin E showed downward sentiments in the Asia Pacific market during the third quarter of 2022, with values declining from $16450/mt to $15500/mt for 50% CWS FOB Qingdao from July to September. Among the factors influencing this pricing trend is the fluctuating cost of raw materials, changing consumer spending, and weak end-user sector demand. Big suppliers only placed orders for immediate use during the first half due to both the steady offtakes and the high downstream demand. However, after the markets began operations in the last week of July, several vitamin makers carried out maintenance, which reduced the amount of Vitamin E that was accessible to local as well as international providers.
Europe
The price of Vitamin E in Germany decreased from $16720/MT to $15510/MT from July to September, demonstrating a downtrend during the 3rd quarter of 2022. Logistics issues brought on by continuous transportation delays have worsened Germany's economic slump this quarter. The commercial situation in Europe was made worse by China's ongoing port restrictions as well as the unrest in Russia and Ukraine. Domestic merchants were forced to cut their prices in the second part of the quarter as a result of the decreased demand from the pharmaceutical and nutraceutical industries.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, there were indications that the market trend for vitamin E in North America stagnated. A supply shortage that already existed in the US was made worse by the COVID shutdown in China's commercial hubs, which greatly hindered imports. Domestic merchants and buyers were concerned about high raw material prices throughout the quarter because of the US's rising inflation, the troublesome political situation in Russia and Ukraine, and the wildly unpredictable nature of oil prices. A modest increase in import, consumer, and production spending followed the abrupt change in oil prices in May. Despite the Asian blockades, in June, maritime cargo from China appeared to pass through the nation's main ports without any issues. Nevertheless, as the quarter progressed, demand from the nutraceutical and pharmaceutical industries remained strong.
Asia Pacific
During the second quarter of 2022, the price trend for vitamin E in the Asia Pacific region showcased a downward trend. China's domestic market had a sharp rise in nutraceuticals output during the first half of the quarter due to its factories and ports opening. After a spike in COVID-19 instances during the latter week of April, which had various effects on the nation's nutraceutical markets, the Chinese government put significant production facilities on lockdown. The end-user industries' need for offtakes remained consistent throughout the quarter. The nation's irrational Zero tolerance policy led to many cargo ships getting stuck at ports, making it more difficult to transport the product to other markets. Numerous factories were prepared to provide the products at a discount toward the conclusion of the quarter to get rid of stockpiles before they decayed due to the high COVID tariffs.
Europe
The Vitamin E market in the European region remained favorable throughout the second quarter of 2022, despite a little drop in pricing that began at the end of June. The conflict between Russia and Ukraine raised shipping costs and slowed commodities' flow into Europe, making it harder for exporting nations to conduct business. Throughout the entire quarter, demand from end-user businesses remained constant. However, the suppliers had enough inventory to meet all domestic demand.
For the Quarter Ending March 2022
North America
Vitamin E prices in the North American market climbed significantly in Q1 2022, owing to strong demand from the nutraceutical and pharmaceutical businesses. Several traders in the United States loaded their shelves ahead of China's spring festival holidays, resulting in sufficient supplies in the domestic market to meet overall downstream demand. The price of Vitamin E has also risen as a result of the increased demand for nutritional supplements among health-conscious consumers in the United States who want to change their eating habits. Due to prolonged port congestion and delayed supplies from Asia during the Omicron outbreak, the US nutraceuticals market remained in a state of frenzy throughout the second half of the first quarter. During the last week of March, however, ocean freight charges on the key trade channels remained consistent but remained extraordinarily high. Due to exceptional increases in freight prices during the continuing Russia-Ukraine conflict, supply interruptions and manpower shortages became much worse.
Asia Pacific
The Vitamin E market in the Asia Pacific region showcased positive sentiments throughout Q1 2022 followed by the consistent offtakes in the end-user industries. In the Chinese domestic market, the prices of Vitamin E soared in the month of January owing to the increased demand from the downstream manufacturers and got settled at USD17115 per MT FOB Qingdao. Major feed grade manufacturers, including Zhejiang NHU Pharmaceutical and Shangyu NHU Bio-Chem, halted their operations in order to contain the spread of the Omicron variant of the virus, which exacerbated the pricing trend of Vitamins in the Chinese market. In early H1 of 2022, Vitamin markets remained in the wait-and-see mode as the full impact on supply was under pressure due to the winter Olympics and the Lunar new year. However, the sentiments then later rebounded after the break with increased demand for the product from the domestic as well as offshore buyers. In India, Vitamin E discussions for CFR and Ex-Mumbai were assessed at USD10434.4/mt and USD11102.93/mt, respectively on the month ending March. On the demand front, offtakes from the downstream pharmaceutical industry remained strong during the 1st quarter. The downstream demand was met because Vitamin E was readily available in the Indian home market.
Europe
The European market, began the first quarter of 2022 with strong feelings. Because of the steady intake in those industries, demand for Vitamin E from end-user firms such as pharmaceutical and nutraceutical was robust throughout the first quarter. Rocketing raw material costs, escalating energy crises, and rising freight costs continued to wreak havoc on European market emotions. Increased production cost due to high feed prices amid Russia-Ukraine further contributed to the price trend of Vitamin E in Europe. The FOB prices of Vitamin E in Germany were assessed at USD22400/mt in the starting month of Q1 2022.
For the Quarter Ending December 2021
North America
The US domestic market trend of Vitamin E showcased positive sentiments during the 4th quarter of 2021. The prices of Vitamin E escalated from USD 24986/MT to USD 25550/MT from October to November and then later got declined in December by settling at USD 24990/MT FOB Illinois. A hike in the overall cost of production led to a substantial spike in prices where energy feedstocks soared since the later stages of Q3. The logistics issues, along with the disrupted supply chains and high freight charges, further supported the price trend in the country. In terms of demand, the fundamentals remained firm as the nutraceutical and cosmetics industry kept consistency in volume intakes.
Asia Pacific
During the fourth quarter of 2021, the prices of Vitamin E witnessed a significant rise across the Asia Pacific region. In China, Vitamin E prices for FOB Illinois shot up from USD 13932/MT to USD 16712/MT from October to December on the back of the strong demand from the downstream industries. Several manufacturers stopped offering quotations in November to the spot buyers in Q4, which resulted in the raised market sentiments. The overall supply outlook was highly influenced by the tightened supply and elevated cost of raw materials during Q4. Furthermore, the impact after the implementation of dual control on energy consumption uplifted the quotations for the upstreams in the Chinese domestic market, which later in the third week of December. In the Indian domestic market, CFR JNPT and EX-Mumbai prices for Vitamin E were assessed at USD 10509.79/MT and USD 11309.67/MT, respectively, in December.
Europe
In Europe, the prices of Vitamin E remained in the upward momentum during quarter 4 of 2021 following the price trend of the USA, which gradually gained numbers during the mid-week of November. As Netherlands and Germany are the major importers of Vitamins, spiraling raw materials costs, peaking energy crises, and soaring freight costs in China compelled to trade the product at increased prices across the region. The demand from the downstream nutraceutical and pharmaceutical industries remained strong throughout the quarter.
