Melatonin prices are projected to rise in China due to an increase in advance orders as a result of China's 15-day holiday for the New Year
- 12-Jan-2022 2:07 PM
- Journalist: Nina Jiang
The pricing trend of Melatonin and other nutraceutical products is witnessing a consistent rise in the Chinese domestic market on the back of the increasing demand from downstream manufacturers.
As the delta variant of the coronavirus is driving an unprecedented wave of infection around the globe, resulting in mass absences of staff in multiple industries, several manufacturing units in China have suspended their operations in order to curb the spread of the virus. Major feed grade manufacturers, including Zhejiang Medicine Co., Ltd. and Zhejiang NHU Co., Ltd., have declared a forced closure amid tightened local policies due to rising Omicron cases in the Zhejiang Province in East China.
As the Holiday season is approaching, the demand for Melatonin has surged in China as the domestic market will be shut from 23rd January to 15th February due to the upcoming Lunar New year on 1st February 2022.
As Per ChemAnalyst, the price of Melatonin is expected to witness a rise in the upcoming weeks owing to the increased advanced orders from pharmaceutical and nutraceutical industries. During the first week of Jan 2022, Melatonin prices escalated up to USD 163743/tonne from 156692/tonne FOB Qingdao. The prices competitiveness among the manufacturers and increased raw material prices are other factors supporting the hike in the prices of Melatonin in China.
Melatonin products have become quite popular among the Chinese youth for aiding sleep disorders, which is fuelling the demand for the product in the country. According to market experts, the Chinese authorities have imposed strict lockdown measures due to the upcoming winter Olympics in Beijing, which could further exacerbate the prices of several commodities in China.
What lies ahead?
As per ChemAnalyst, the ongoing price trend for Melatonin is anticipated to prevail in the spot market until the mid-week of February. Speculation of the closure of several companies due to the 15-day holiday in China for the New Lunar year is likely to further increase the prices of Melatonin in the domestic market in the upcoming weeks.
