China's Panthenol market carried the upward momentum from December right into January, with prices edging up another 1%. The upward trend held strong for the first two weeks of the month, due to a delicate balance of supply and demand that kept market sentiment in good shape. Producers kept their production in check, doing so due to both economic and environmental reasons - they just couldn’t crank up production to make a big dent in supply. So, as a result, stock levels stayed lean, and sellers were able to keep on playing hardball when it came to negotiations. On the demand side, domestic demand from cosmetic and pharma manufacturers was steady enough, driven as it was by regular production of skincare, haircare, and wellness products. And then there was export demand - overseas buyers kept on buying Panthenol to cover their near-term needs as usual. No changes in the cost of raw materials or energy, the production economics stayed stable, allowing producers to hold firm on their prices. All in all, the market views January as just a continuation of December's trend, rather than a turning point. So, expectations are still upbeat, with prices looking like they'll stay supported by all this ongoing procurement activity, stable output, and a general balance between supply and demand.
