Biotin prices in China have been steadily rising as demand has increased and output has decreased due to rise in Covid
- 11-Jan-2022 3:07 PM
- Journalist: Li Hua
The imports in China demonstrated the fastest recovery in 2020 on the back of the surging demand for raw materials. However, the export growth got disrupted amid rising COVID-19 cases at the country's major ports. Several Chinese companies, including the feed additive industry, have suspended their operations in one of the biggest manufacturing hubs of Nutraceuticals products due to the rise in Omicron cases.
As per ChemAnalyst, the price of Biotin is continuously increasing in the Chinese domestic market fuelled by the increasing demand from the downstream sectors. Biotin prices escalated from USD 431970/tonne from the last week of December 2021 to USD 435440/tonne in the first week of January 2022 and are anticipated to increase further in the upcoming weeks.
The Zhejiang Province in East China has reported 217 transmitted cases of Omicron, a variant of covid with confirmed symptoms during the first week of December. Several pharmaceutical manufacturers, including Zhejiang Medicine Co., Ltd. and Zhejiang NHU Co., Ltd., have declared a forced closure amid tightened local policies following the recent flare-up regarding rising Omicron cases.
According to the market experts, the sudden outbreak has caused authorities to clamp down on the movement in the port city of Tianjin, one of the largest ports in Northern China, and is likely to affect the export of several products, including API (Active pharmaceutical ingredients) in the forthcoming period.
As the winter Olympics in Beijing is approaching, the Chinese government has imposed strict lockdown measures in order to contain the delta variant of coronavirus. The prices competitiveness among the Biotin manufacturers is further supporting the price hike in the domestic market. The speculation of Chinese authorities to close several factories to reduce the pollution for the upcoming Beijing event is one of the major reasons for the increased demand for Biotin in China.
What lies ahead?
As per ChemAnalyst, Biotin prices in China are expected to increase in the upcoming weeks, and the current Nutraceutical market sentiments are likely to prevail in the spot market till the end week of January. Major Biotin players with a high self-sufficiency rate and a high degree of performance are recommended to boost their production in order to cope up with the increased demand.