Volatility seen in several vitamin markets

The recent incident at a Chinese vitamin A production plant, together with less offers available from Western suppliers, has led to a slightly firmer market for vitamin A1000 and to some forward cover for the remainder of Q1 and some for early Q2. But no significant volatility seen so far.

Vitamin D3 500, which is also produced at that same plant, has not been affected in terms of price volatility at all until now. Some small vitamin C manufacturers have returned to the market, offering relatively high prices. Other main suppliers have stopped quoting prices, Markets have become firmer for some weeks now. But most forward cover was already taken when prices were low. Some vitamin B3 suppliers have increased prices further, while others are still not offering. A few others remain competitive but are also not ignoring the current stable to somewhat firmer trend.

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Vitamin E 50%

Still a bit of upward price pressure and higher price offers from suppliers for new business. But at the same time, Q1 business and a small portion of Q2 business have been secured, so the market is not active or volatile. Some transactions here and there, but nothing significant. Prices have slightly firmed recently as some suppliers stopped offering or indicated to have less production output due to a lack of raw materials.

Vitamin A 1000

After the recent incident at a Chinese vitamin A production plant, their operation is temporarily shut down due to further investigation. At the same time, offers from Western sources are said to be less as well compared to some weeks ago. The market is relatively calm, as there seems to be no immediate shortage of vitamin A1000, but there is more activity seen now compared to last week, for the remainder of Q1 buying and early Q2 buying to secure sufficient supply. Market prices in for example China and Europe have increased slightly because of that situation. Q1 is now mostly contracted but Q2 is still open in most regions.

Vitamin D3 500

Very recently an incident occurred at a main Chinese vitamin D3 500 and vitamin A1000 manufacturer. Although some increased activity is seen for vitamin A1000, hardly any reaction from the market is seen for vitamin D3 500. The supplier base for vitamin D3 500 is wider than for the A1000 on a global level, that might be why the impact is less seen on D3. Apart from the incident, no change has been seen in the vitamin D3 market for months already. Potentially the delays and higher freight costs could do something in the coming weeks, but so far no major changes seen or reported compared to previous weeks. A good portion of Q1 is contracted and some early Q2 volumes as well.

Vitamin B2 80%

Several attempts by suppliers to stop the price decline and even to increase prices have not worked so far, although prices seem to have stabilised recently at a low level. The price in Europe has almost been a flat line for months now and as long as no significant new (Chinese) capacity is seen in the EU, no changes are expected. Most of Q1 is contracted for practical and risk management reasons.

D-Calpan

It seems that d-calpan is one of the few vitamins that continue to show a weakish tone. Most vitamins have bottomed out or are firming, as there is a lot of resistance from the manufacturers to decline prices further. Although under current circumstances with delays ex China and increased logistics costs, the speed of decline is now getting less and less. A decent portion of Q1 is booked for practical and risk management reasons. Some considerations for early Q2 are made by buyers as well now.

Vitamin B3

Still, several suppliers are asking higher prices for new business while others refrain from offering at all. Some other suppliers continue to offer low prices, although they are not ignoring the stable to slightly firmer market either. The market is relatively quiet as a significant portion of vitamin B3 is already contracted ahead, with a mix of old and relatively new contracts. The price trend for now looks stable to slightly firmer. A good portion of Q1 is contracted and a small portion of Q2 as well.