Carnitine prices in the Asian market recorded a slight increase in the first half of May 2025, continuing the upward momentum seen in April. This followed a sharp rise last month driven by tightening supply conditions across key producing countries such as China and India. Despite the easing pace of increase in May, underlying market fundamentals remained firm due to sustained export activity, supply-side disruptions, and resilient downstream demand.

• Asian Carnitine prices edged up in early May after a significant increase in April due to supply constraints and export pressure.
• Chinese Carnitine supply is tight as exports are front loaded ahead of US tariffs, production is down and currency fluctuations is impacting pricing.
• Indian Carnitine prices rose in April due to strong export demand, good manufacturing activity and stable consumption from pharma and nutraceutical sectors.
• Market fundamentals are firm in early May with inventory shortage and strategic buying keeping prices of Carnitine strong across the region.
• Carnitine prices will decline in 2nd half of May as purchasing activity from buyers expected to decline, inventory will be high and leading to a balanced market.

In China, the inventory level declined in April as exporters were rushing to ship out goods before the US tariffs kicked in. This caused domestic inventory of Carnitine to drop significantly and put pressure on the local supply chain. The industrial output was also weak as China’s PMI fell to its lowest since December 2023. This can also be observed on the production capacity of Carnitine and further tightened the supply. Meanwhile, the exchange rate between US dollar and Chinese yuan affected the pricing as exporters adjusted their price to offset the exchange rate risk. All these factors continued to support the upward trend of Carnitine price into May.

In India, Carnitine prices went up slightly in April. This was due to strong export demand and supply constraints. India’s Manufacturing Purchasing Managers Index was up, driven by growth in international orders across Asia, Europe, West Asia and Americas. Domestic manufacturers prioritized exports and domestic supply was limited. Also, appreciation of Indian rupee against US dollar led to adjustments in local pricing and easing of retail inflation meant better consumer purchasing power. Combination of trade policy uncertainty, currency movement and healthy demand in pharma and nutraceutical segment helped Carnitine prices to remain firm till early May.

But market sentiment is shifting. According to market sources, prices are expected to decline slightly in 2nd half of May in Asian Carnitine market. Buyer fatigue after aggressive early month buying has led to inventory buildup at many distribution points and hence not much urgency for fresh orders. Strategic buying has also slowed down as traders and manufacturers are waiting and watching for price correction. Downstream demand is stable but not growing and supply is easing marginally, so market will see a brief period of price consolidation in next few weeks.