Rising Demand and Improved Trade Conditions Sustain Upward Momentum of Vitamin B1 Prices
Rising Demand and Improved Trade Conditions Sustain Upward Momentum of Vitamin B1 Prices

Rising Demand and Improved Trade Conditions Sustain Upward Momentum of Vitamin B1 Prices

  • 13-Mar-2024 3:55 PM
  • Journalist: Jung Hoon

The prices of Vitamin B1 are anticipated to continue their upward trajectory globally in March, aligning with the trend witnessed in the preceding month. The disruption in production during the Spring Festival, marked by the closure or reduced operation of numerous factories, led to a market shortage and subsequent price surge in February. Although factories have resumed operations post-holiday, the persistent insufficient supply of Vitamin B1, attributed to the normalization time required for production, may contribute to a further increase in prices throughout March. The ascending trend is further fuelled by heightened demand, improved commerce, and a surge in inquiries, contributing to a bullish market sentiment.

During the January-February period, China's trade performance surpassed expectations, indicating a positive shift in global trade dynamics. This development is particularly encouraging for policymakers, as prolonged manufacturing weakness has posed challenges to the economy. China witnessed a notable 8.7 percent year-on-year growth in both imports and exports of goods in the first two months of 2024, a substantial improvement from the 2.3% increase observed in December. As global trade rebounds and economic activity picks up pace, there could be a corresponding rise in demand for various products, including dietary supplements and nutraceuticals containing Vitamin B1. This increased demand, coupled with the existing supply constraints, could lead to surge in Vitamin B1 prices.

The beginning of 2024 saw the US economy on solid ground, with consumer sentiment improving for the third consecutive month in February. Despite facing heightened inflation and higher interest rates, consumers grew more optimistic about the economic. This optimism may translate into increased purchasing power, potentially boosting demand for various goods and commodities, such as Vitamin B1, which could consequently push prices higher. Similarly, in the Eurozone, business confidence has reached its highest point in five months, accompanied by an improvement in consumer confidence, contributing to the upward movement of Vitamin B1. Also, the recent data also indicates a decrease in inflation across the Eurozone, including in Germany. This decrease suggests alleviation of financial pressures on consumers, leading to heightened demand for Vitamin B1 and potential price increases. Moreover, market participants, mindful of supply-demand dynamics and anticipating future price hikes, focused on replenishing their inventories, further driving up the prices of Vitamin B1.

According to ChemAnalyst's assessment, Vitamin B1 prices are expected to continue their upward trend, fuelled by the sustained rise in demand from various end-user industries, coupled with increased inquiries from the global market. Consequently, market players are anticipated to adjust their pricing strategies to capitalize on this trend, thereby bolstering the ascent of Vitamin B1 prices. Additionally, the anticipated relaxation of trade activities is poised to provide further support to the market dynamics.

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