The market was a bit bullish recently for several vitamins like A, B3, E, B1, B6, C, and some others, all with their own reasons. But the red line is that prices have become unsustainably low and manufacturers try everything to increase prices, with some success. Learn more in this week’s feed additives snapshot (week 06).
Longer term, the supply and demand (S&D) has not really changed for most vitamins. Maybe for a few key ones like vitamin A and E, there is a bit more balance now as output is reduced by regular disruptions. Vitamin A remains firmer, but the number of transactions is low. Vitamin E has gone relatively quiet again. Vitamin D3, B3, B5 have stabilised or even increased a bit, But Q1 and a portion of Q2 are contracted by now. Vitamin B1, B6, K3, B12, C continue to have a slightly firmer tone.
The overall sentiment for vitamin E 50% is stable to firmer. But the actual number of transactions has slowed down and the market feels relatively quiet now. Prices in the US showed the most increase in terms of price offers, in China and Europe the increase has been marginal so far. Q1 is mostly contracted by now and a portion of Q2 as well.
There is still a bullish sentiment in the vitamin A market and prices have recently firmed a bit. The number of transactions has slowed down though and most end-users are contracted ahead for Q1 and a good portion of Q2. Availability is said to be tight and it has to be seen if all the Q1 and Q2 contracts will executed timely and in full. If it will stick longer term, is still the question. But for now, the market is firmer in most regions.
After a long period of price decline, the market has recently stabilised and even slightly increased in some regions. Current market prices are still very low though. Nearby stocks are not plentiful as prices have been declining for a long time. And with delays ex China there has been some buying going on for Q1 and a portion of Q2. A good portion of Q1 is contracted and some early Q2 volumes as well.
Very limited new information to share about the vitamin B2 market. The market continues to feel quiet and stable. New capacity came online in 2023 and that seems to be priced in by now. Prices in Asia are relatively low, while prices in Europe are higher and in the US as well, compared to that. Q1 is mostly contracted and a portion of Q2 is as well.
As seen with a lot of vitamins, the recent price decline has come to a stop and in some regions, there is even a small increase in prices seen. Low local stock and disruptions in the supply ex China have stabilised the market for now. Most buyers have contracted their material into Q2 by now, as prices had become very low and risk was therefore manageable. No signs of major changes coming up soon. Q1 is mostly contacted, with a small volume into Q2 in some regions.
Manufacturers and suppliers continue to try to increase the price, or at least try to keep it stable. So far that is working in most regions. But the number of transactions is very limited, so it is difficult to say what is the exact price at the moment. There may be some short-lived volatility in Q1 as shipments arrive delayed in regions like Europe or the US. Overall, it is relatively quiet and there is already decent cover for Q1 and even some for early Q2.
No major changes are seen in the biotin market. As most of the blending from biotin pure to for example a 2% material is done locally in the US of Europe, there is no real impact from higher container freight costs. The biotin market remains very calm with some occasional spot buying mentioned. Most of Q1 is contracted. In some cases, buyers took long-term contracts well into 2024, some of them also older contracts.
Spot prices remain firm compared to some months ago and most suppliers still refrain from offering in an attempt to have a more permanent price increase and some margin. Most buyers are contracted well into 2024 and are not in the market as such. Potential delays ex China may lead to some spot buying in the coming months. No significant activity is seen and only limited suppliers are offering. Q1 and Q2 are mostly contracted and in some cases a large portion of 2024 is as well.