Vitamin Report 2022
Vitamin market demand has picked up and customer inquiries have increased slightly,. On the whole, the inositol rising price and inventory continued to decrease; price of K3 has increased; The supply of calcium pantothenate is tight then the marketing is active. Niacin and niacinamide productions are abnormal and the price recovered slightly for the reason of being affected by the epidemic and product will be released until January next year. The prices of B1, B2, B6 and B9 fell a little, mainly due to the low market demand. Up to now most of vitamin price fell to the bottom.There are excess capacity and inventories in the competition market. The demand is weak and global economy is approaching recession. Many vitamin manufacturers are in the state of losing money. The quotations of most vitamin products are close to the costs. Until the end of this year, the vitamin prices will be stable.
Our vitamin report only represents the view of Beijing Jingmu Group Corporation.
VA is weak
On Oct. 27, due to being beaten by slowing demand and sharp drop in price, Adisseo has decided to reduce VA production temporarily on its interactive platform. Due to weak demand, VA 1000 price continued to fall from $60 to around $25. . Chinese VA manufacturer stopped quotation from Nov.21. There’s few stock in the market. According to the latest local news in Europe, because of the high energy costs being estimated in this winter, On NOV 21, DSM stopped the production of vitamin A at the Swiss plant for 2 months at lease from January 2, 2023 and because of sharing the upstream infrastructure , Vitamin E 50 production will also be significantly affected!
D3 price is at the lowest point in history
The demand for vitamin D3 in the world is about 14,796 tons/year, and the global production capacity of vitamin D3 is about 11,000 tons. The technical barrier of vitamin D3 is high. At present, cholesterol can only be extracted only from natural substances, animal brain or lanolin. Due to the influence of mad cow disease and other factors, the use of animal brain extraction has been banned in most of countries in recent years. Lanolin has become the only legal raw material for vitamin D3, but the extraction cost of this raw material is high and the process is complicated so the investment is huge. Throughout the price of vitamin D3, its fluctuations are mainly affected by factors such as shortage of raw materials, environmental protection supervision. In the first half of 2022, D3 raw material prices rising, Russia Ukraine conflicts and frequent outbreaks of epidemics. D3 price should be increased, but as a result of the fierce competition and the large amount of inventory, the price of D3 is at the lowest point in history. D3 500 market price is at the range from USD6.8/kg to USD7/kg. D3 40miu price is around USD1600/kg. It’s good timing to place order.
VE is stable
VE production pattern is relatively stable. Due to European energy prices rise , Euro VE output falls. Chinese VE production shared market increased from 55% in 2018 to 80% in 2022.The recent intensification of Russia-Ukraine conflicts has further exacerbated the tension in natural gas supply in Europe. Natural gas is a key raw material for the synthesis of acetylene (the upstream raw material of VE), and the shortage of natural gas in Europe has further expedited the shortage of vitamin supply in Europe. According to Bloomberg News, affected by the cut-off of key intermediates, DSM's 22-year output will be estimated to drop by more than 30% and the production of BASF is also down significantly. At the beginning of this month, DSM announced to rise the VE price up. NHU quoted USD11.6/kg Beisha followed with an offer as USD11.4/kg, Market attention is increased significantly, but most of end user still take wait-and-see attitude. Euro market price is in the range from €8.9/kg to €9.2/kg. Transaction price is around USD9/kg. All of Chinese VE manufacturers stopped quotation.
K3 price is stable
The current global production capacity is about 13,000 tons per year , of which more than 80% are produced in China. China has become the world's largest vitamin K3 producer. In recent years, with the development of the global breeding industry been slowed down, the demand for vitamin K3 has grown slowly which has led to an nearly half overcapacity. the global industry operating rate is only about 53.8%. After ZHENHUA acquired Minfeng, Zhenhua became the largest K3 manufacturer in the world, increased industrial concentration. In 2021, ZHENHUA MINFENG K3 sales volume was 2700MT, BROTHER was 1600mt, VANETTA was 1000 mt, LULIANG PEACE was 800mt. K3 manufacturers still hold firm attitude to keep K3 at high level. K3 manufacturers united to adopt the principle of reducing K3 output and maintaining prices, and K3 prices continue to be stable. The prices are quoted as USD20/kg (MSB) and USD 24/kg (MNB).
VC price stable
There is serious overcapacity, the global demand for vitamin C is about 220,000 tons. VC situation has been changed from a monopoly of four VC manufacturers and VC manufacturers compete fierce. NHU as a new VC entrant, VC capacity is 30,000mt/year. VC manufacturers still have strong willing to increase the price, but demand is weak. Vitamin C 99% price is around USD2.5/kg. The transaction price for vitamin C 97% is USD2.6/kg and vitamin C 35% is USD1.9/kg.
B1 price close to the cost line
Vitamin B1 production waste water contains more ammonium sulfate compounds and high nitrogen content, which is difficult to biodegrade and is strictly controlled by the environmental protection department. In recent years, with the increase of sewage disposal pressure, B1 manufacturers have taken measures to limit production and reduce energy. Demand is weak, in order to share more market, B1 manufacturers engaged in malignant price war. B1 price is close to the production cost line. B1 mono feed grade market price is USD15/kg. B1 HCL feed grade price is USD20/kg.
B2 stable and weak
Due to competition among B2 maufacturers and weak demand, loss is on the whole B2 industry , B2 80% transaction price is in the range from USD11.2/kg to USD11.5/kg. B2 98% is about USD38/kg to USD42/kg. B2 80% price is lower than the cost line. Meihua already started exporting B2 to oversea market. Meihua B2 80% capacity is 1,000mt/year. Another two new B2 manufacturers joined in this product, they are XINFA and KUNDA. Generally speaking, the short-term upward momentum is insufficient.
B3 is in a state of loss
The remaining orders of this year had been locked by top manufacturers and there is almost no demand in the next 2-3 months. 3-Cyanopyridine is overcapacity from Nanjing Red Sun so the expectation of price rise is difficult to achieve in the short term. Driven by REDPONT, the price of B3 fell all the way, the lowest price fell to USD3.2, and all manufacturers were in a state of loss. Now B3 manufacturers have raised the price of B3 to USD3.6, but the price is still below the production cost. B3 manufacturers' orders have been scheduled until February next year, stimulated by the low price. Niacin price is around USD3.6/kg. Nicotinamide transaction price is at the range of USD3.6-3.9/kg .
Choline chloride price is downward
Due to the exchange rate and the COVID-2019 affection at the places of raw material production, trimethylamine is rising up slightly at the range of 20-30 US dollars per ton, so the market price is slightly stretched. As of today, the price of ethylene oxide in South China increased slightly, and the price of ethylene oxide in other regions was temporarily stable. The changes of trimethylamine are paid attention in the future. Sales volumes are down by two-thirds year-on-year because of weak demand and exchange rate. Terminal customers are buying on hand-to-mouth basis and not as stock as before. The trading prices are quoted as follow: CC 60% with corn cob carrier is USD1013/mt; CC 50% with silicon dioxide carrier is around USD1063/mt; CC 70% is USD1163/mt.
B5 pantothenate price stable
On January 14, 2022, the B5 manufacturers uniformly raised the quotation price from USD14/kg to USD45/kg then the market transactions became active. As manufacturers continued to raise prices, the transaction price reached USD53. In the third quarter, due to a small unknown manufacturers sold B5 with low-priced, the market price declined to USD21/kg in a short period of time. Since pantothenate, the raw material of B5, is controlled by some capital and B5 manufacturers hold the firm attitude to increase the price, B5 price stopped falling. All of B5 manufacturers jointly raise the price to USD22.5/kg again. At present, HUAHENG, TIGER and JINGJING stopped production. It’s said NHU and TIANXIN will start B5 production formally in 2023. Some insider are not optimistic about B5 market. There is a small amount of stock in the market now. Transaction price is around USD20/kg.
B6 price is lower than cost
Before 2021, the supply of B6 is slightly greater than the market demand, and the supply and demand basically remain in balance. TIANXIN share about 50% B6 market in the world, the production is relatively stable. Due to NHU joining, in order to seize the market, a intense competition between NHU and TIANXIN B6 price dropped to the bottom. The current price is around USD14/kg and it is below the cost line. All of manufacturers loss on B6 production. NHU, HUISHENG and TIGER stopped production. Transaction price is around USD14/kg.
Biotin falling to a record low
The production process of Biotin is the most complicated among vitamins. In recent years, biotin has become one of the most concerned water-soluble vitamins. With the biotin industry transferring to China continually, the current global biotin demand is almost entirely supplied by Chinese manufacturers. At present, the global Biotin pure capacity reached 400mt/year, Chinese manufacturers occupy 97% of the global market. Due to the huge production capacity exceeding the actual requirement and weak demand, all of Biotin manufacturers loss on the production. Biotin pure price is around USD220/kg, Biotin 2% is about USD5.5/kg to USD5.8/kg.
B9 price is approaching cost line
Chinese capacity of Folic Acid occupy more than 90% of the whole world. Niutang is the largest Folic Acid manufacturer. Due to large output and weak demand, Folic Acidprice dropped to the cost line. XINFA, TIGER stopped producing. The transaction price is around USD26-28/kg.
There is no sign of price increase.
B12 price is lower than cost
VB12 downstream demand is weak, inquiries are relatively small, terminal customers basically purchase a small amount on requirement. Yuxing still has a lot of B12 1% stock , so the price is hitting the bottom to cost level. There’s no upward situation in the short-term. Cyanocobalamin price is around USD13/kg. It is estimated that the productions of most manufacturers will not be able to meet last year’s, and it will almost be cut by half. YUXING stopped producing B12 this week. Kingvit stopped quotation. Cyanocobalamin price is around USD1650/kg, B12 1% price is USD13/kg.
Inositol price stable
Owing to the corn price edging up, the manufacturers united to reduce losses. HAOTIAN overhauled the main production line of inositol from November 15, 2022 to the end of March 2023, and YUWEI cut back production. In November, HAOTIAN announced that it will carry out inositol upgrading and transformation projects, the production lines will resume on next March. Inositol market stock is low. The manufacturers raised the quotation to USD22.8/KG and Inositol market is keeping to be focused. It is said that some factories quoted as USD20.2/kg.
Amino Acids Market Update news
Lysine Sulphate 70% , Current FOB price USD770-790/mt . Changchun Dacheng is purchasing corn from the market and it is said that they would produce Lysine Sulphate again from Jan 2023 . There will also be other new enterers from Henan , Shanxi provinces from the early 2023 . The market demand is not strong , and the supply is sufficient . The trend is weak . Lysine HCL FOB price USD 1150-1170 .
L-Threonine: Current FOB price USD1120-1140/mt , the supply is sufficient and the demand is not strong. Meihua would launch a 250,000mt new project in the early months of 2023, so the pressure for the L-Threonine going weak is big .
L-Valine: Current FOB price is USD2780-2850/mt . Main manufacturers production and logisitics are restricted due to the covid control , and some main factory lack of main raw materials . The supply is tight , and the earliest delivery time is already Feb 2023 . The trend for L-Valine is strong .
L-Isoleucine: Current FOB price is USD7660---7800/mt , limited supply , and high soybean meal all make the main manufacturers keep the price high . The trend is strong.
Arginine : Current FOB price is USD5050-5100/mt . CJ slightly increased the price ,market is stable for L-Arginine.
L-Tryptophan: Current FOB price is USD8330-8450/mt. The supply was tight in the last 2 months, and soybean mean price at high level , which makes L-Tryptophan price at high level from Oct . Recently since the soybean meal price started to decrease, L-Tryptophan started to decrease slightly . The trend is still strong.