Global Vitamin B1 prices are likely to increase towards the end of May, supported by continuous demand from the pharmaceutical and nutraceutical industries alongside limited supply in the market. Despite tariff exemptions offering temporary relief to U.S. importers, broader supply chain and logistical challenges are likely to push Vitamin B1prices higher.

In April, the U.S. government excluded a list of dietary supplement ingredients from its most recent list of tariffs on Chinese imports. Removed from the list were essential vitamins like Vitamin B1, B2, B5, B6, B12, C, E, A, folic acid (B9), niacin (B3), and niacinamide, as well as CoQ10, choline, and other amino acids and minerals. This removal gave some temporary price relief to Vitamin B1 buyers of feed-grade and supplement-grade vitamins.

But other forces are pushing price pressure in the market. One of the key ones is a supply tightness of Vitamin B1, since inventories in China, the world's top producer, are being slowly depleted in the face of robust global demand. The market is still bullish since suppliers are about to increase prices because of these constraining factors.

Added to the supply issues was China's Labour Day holiday from May 1-5. Production and logistic operations shut down or were substantially cut back during this time. This brief shutdown resulted in a production and ports backlog, slowing shipments, and adding to current global market supply tightness. The post-holiday ramp-up is taking time to stabilize, further adding to short-term uncertainty in delivery timelines.

In addition, early indications are for an early initiation to the 2025 peak shipping season. U.S. importers are scheduling ahead at a faster pace to prepare for pending policy changes and to stock up ahead of anticipated summer demand. This buildup is putting pressure on worldwide logistics infrastructure, especially ocean freight, where container shortages and increasing volumes are already becoming an issue. Spot freight prices are increasing consequently, contributing to overall landed costs for Vitamin B1.

Port congestion and logistical delays, particularly at major U.S. and Chinese terminals, are further complicating timely deliveries. As a result, buyers are facing higher transportation costs and potential inventory gaps, both of which are likely to influence Vitamin B1 pricing upward in the near term.

Meanwhile, Europe is also contributing to global demand growth. Germany, a key player in the pharmaceutical supply chain, is experiencing a slow but steady economic recovery, with improving business sentiment expected to boost demand for essential ingredients like Vitamin B1.

As per a report by ChemAnalyst, the global market is expected to witness bullish trends of Vitamin B1 in the backdrop of a balanced demand, supportive tariff dynamics, and persisting logistical hurdles. With trade dynamics shifting and peak season pressures piling up, prices of Vitamin B1 are likely to be on a very positive trajectory.