Vitamin markets: Ongoing market volatility for vitamin A and E
Ever 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. By now, despite the tense situation, the market has calmed down a bit and some forward cover has been taken. Learn more in this week’s feed additives snapshot (week 35).
Especially the availability of vitamin A1000 is under pressure and prices continue to increase. Most manufacturers have stopped offering and it is only traders offering small volumes. Vitamin E prices have become very firm as well. But the market has become a bit more observant and less in panic now.
Vitamin D3 500 has been firm for some time already and no change seen in that. Stocks are low and replenishment not yet sufficient. Price offers went higher again this week. Vitamin B3 remains firm and manufacturers have a strong desire to increase prices further. There is a decent cover for Q3/Q4 by now though. Vitamin B1, B6 and K3 also remain firmer in price. Biotin was a bit firmer recently but seems to have stabilised this week.
In partnership with Feed Additive Prices
Vitamin E 50%
The market has been in turmoil after the recent incident at a Western vitamin E manufacturer, which led to a force majeure claim. Production is foreseen to be resumed in January 2025. Although the situation is still very tense, it seems to be stabilizing for now, and most consumers have taken forward cover. But prices have increased significantly and show no signs of weakness anytime soon. Offers from manufacturers are hard to come by. It is mostly traders offering small volumes. Q3 and most of Q4 are contracted by now and even some Q1 cover is taken.
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. The market is very tense and under strict allocation. Most manufacturers have stopped offering material and it is mostly traders that are active with relatively small volumes. There is no new/additional production foreseen in the short term. It is estimated that production may resume in January 2025. The strict allocations have led to gaps in the market and buyers had to turn to other suppliers to secure their needs. This has led to significant price increases over the last weeks and prices are still firming as we speak. The market has cooled down though in terms of nearby buying activity. Buyers have taken nearby cover and are more in the observing mode now. By now Q3 and a good portion of Q4 are contracted.
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 very firm on the price, which has significantly increased over the summer, and any new price quote is 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. Although Chinese manufacturers are very keen to get the price up. 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. Most of Q3 is contracted and a good portion of Q4 as well.
D-Calpan
Several suppliers have now stopped offering, in an attempt to increase prices. 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. The market is not really responding to that so far and it feels calm until now. Already a good cover ahead is taken for Q3 and Q4.
Vitamin B3
The overall market sentiment remains relatively firm. Due to a shortage and higher prices of raw materials, vitamin B3 has gone up in price. And at the same time, there is anyway a strong desire by manufacturers to take prices up. In all regions, there has been a price increase, although nothing significant yet. There is cover taken well into Q4 and with the current firmer market, some buyers are considering booking full 2024 now.
Biotin
In the past few weeks some firmer prices were seen, but this week things seem to have stabilized again, although at a bit higher price level than some weeks ago. Recently several suppliers have stopped offering and/or are increasing their price offers for new business. That led to some buying activity but right now it is quiet again in most regions. Prices have been very low for a long time now and there is a decent forward cover already at these low levels.
Vitamin C 35% mono
There is an ongoing 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. But recently, the container freight rate on some routes has weakened again. Suppliers are undergoing summer plant maintenance. Q3 and most of Q4 are contracted.
