Is the Biotin Market in China expected to decline?
- 11-May-2022 7:25 PM
- Journalist: Xiang Hong
The nutraceuticals market in China has been in a state of uncertainty since the cases of COVID-19 surged at the end week of March. Global supply chains have been severely harmed due to increased COVID sub-variant infections in China and Xi Jinping's implementation of the Zero-Covid policy as Shanghai is China's key export hub. China's famed Zero-COVID policy has damaged Chinese citizens and posed a great threat to the rest of the world, as the country's "witless" policies have stranded hundreds of cargo ships in ports, causing freight costs and worldwide inflation to skyrocket.
Because about 90% of the world's goods are transported overseas, one of the world's largest shipping corporations has predicted that the lockdown will significantly influence transportation prices. The impact of rising freight costs on global trade is projected to be negative. The price of biotin on the Chinese domestic market is gradually reducing for a variety of evident reasons, one of which is the destocking of present stockpiles due to loss aversion. According to Inside Over, businesses will not tolerate this unfavorable trend and will shift the burden to customers. Logistics businesses have encouraged vessel operators to discharge products at other ports due to high traffic constraints at Shanghai's port. However, the sudden drop in Biotin prices will excite domestic and foreign traders, prompting them to purchase big amounts of the product.
Ultimately the buyers across the globe will have to bear the extra shipment and storage charges. As China is going through its worst outbreak, the increase in freight prices could also create economic repercussions on global trade.
According to ChemAnalyst, If the delays last for an extended length of time, other ports may be unable to fill the hole. Due to the high COVID limitations, several factories are finding it difficult to maintain momentum.