Vitamin markets: Extremely volatile, especially vitamin A and E
Since the incident at a Western vitamin manufacturer in Germany a few weeks ago, the market for vitamin E and A has been very volatile and prices have gone up significantly. As this manufacturer has a significant market share for vitamin A and their product allocation for existing contracts is very tight, buyers have to go out to the market to secure (a part of) their Q3 and Q4 needs now. Prices are therefore firming as we speak. Learn more in this week’s feed additives snapshot (week 34).
Vitamin E prices are also firming considerably, although the market share of this above mentioned manufacturer is not as large for vitamin E. Still, suppliers see momentum to increase prices. Vitamin D3 500 has been firm for some time already and no change seen in that. Stocks are low and replenishment not yet sufficient.
Vitamin B3 is starting to go up in price plus there is a strong desire by manufacturers to increase the price and at the same time raw materials are scarce and higher priced. Vitamin B1, B6 and K3 are also firmer in price. Biotin prices have been stable for a long time, but higher price quotes are seen there now as well. D-Calpan is stable at a low level, but suppliers are starting to show more resistance now and are indicating that there is less availability. Overall, the vitamin market is volatile!
In partnership with Feed Additive Prices
Vitamin E 50%
After the recent incident at a Western manufacturer of vitamin E, which led to a force majeure claim, the market has been in turmoil. Material from this production location that was already under contract, is under strict allocation until the end of the year. Although the market share of this specific manufacturer is not the biggest among the several participants, it still led to a volatile market and much firmer prices. The market is still nervous as we speak, but at the same time, a decent cover for Q3 and Q4 and even some of Q1 is seen. So buying activity has slowed down, but prices remain very firm and suppliers increase their price offers regularly.
Vitamin A 1000
After the recent incident and claim of force majeure at a Western vitamin manufacturer, the availability of vitamin A 1000 has been seriously jeopardized. This manufacturer’s market share had become significant after their recent capacity expansions. They indicate they can now only supply on a strict allocation from their buffer stock until at least the end of 2024. There is no new/additional production foreseen in the short term. This has led to gaps in the market and buyers had/have to turn to other suppliers to secure their needs. This has led to significant price increases over the last weeks. By now Q3 and a good portion of Q4 are contracted and the market is turning a bit quieter, but the situation is still very tense and prices continue to increase.
Vitamin D3 500
Although there is less buying activity seen, the market for vitamin D3 500 is still very tight. Stock levels are low and new supply is delayed. Suppliers remain firm on the price, which has significantly increased over the summer, and new price quotes are still higher than the previous ones. Q3 is contracted by now and a good portion of Q4 as well. It is now to be seen if the contracted volume will be supplied on time and in full.
Vitamin B2 80%
The vitamin B2 market remains stable and relatively quiet. The Western manufacturer that was hit by production issues on vitamin A and E in Germany, has its vitamin B2 production in South Korea, so that product is not affected. Some Chinese manufacturers have a strong desire to increase prices, but no support from the market for that until now. Most of Q3 is contracted and a good portion of Q4 as well.
D-Calpan
Although prices are mostly stable at a relatively low level, there is a growing desire by manufacturers to increase the price. Price offers are becoming less easy to obtain or are higher compared to some weeks ago and there are talks about lower stock levels and less nearby availability in various regions. Already a good cover ahead is taken for Q3 and partly Q4 for strategic reasons.
Vitamin B3
Due to a shortage and higher prices of raw materials, vitamin B3 itself has also gone up in price recently. And at the same time, there is a strong desire by manufacturers to take prices up. In all regions, there has been a price increase, although in Europe and the USA, it is still marginal. But in other regions like China, the latest price offers have been considerably higher compared to some weeks ago. There is cover taken well into Q4 and with the current firmer market, some buyers are considering booking full 2024 now.
Biotin
There are some changes seen in the biotin market now. Suddenly several suppliers have stopped offering and/or are increasing their price offers for new business. Prices have been very low for a long time now and there is a decent forward cover already at these low levels. But at least it seems there is some potential volatility coming up.
Vitamin C 35% mono
There is a strong desire from manufacturers to increase the price of several vitamin C products. So far no significant increase has been seen. The only real impact on the price is seen from the increased container rates. Suppliers are undergoing summer plant maintenance. Q3 and most of Q4 are contracted.
