Prices of Vitamin C are witnessing a rise in the US market on the back of the increased demand and soaring cost of raw materials

There’s no doubt that the fast-spreading delta variant of the coronavirus has started denting the U.S. economy at the beginning of 2022. A number of events are canceled or postponed, consumers curtailed on restaurant dining, and understaffed businesses shut down in some of the most-afflicted areas, including New York City. The Omicron may have milder symptoms, but its effects are creating some of the greatest challenges of the Covid-19 pandemic around the world. This new coronavirus strain, increased inflation in the country, ongoing shortages, and slower consumer spending is likely to continue to threaten the economic recovery until the upcoming weeks. According to several economists, the U.S. market witnessed an increase of 7% in inflation in 2021, which is the biggest jump since 1982. Inflation is unlikely to fall quickly in the domestic market as Omicron has disrupted the supply chains and the ability to hire.

China’s zero-tolerance covid policy left a number of American manufacturers in the dilemma that it could throw a wrench in the global conveyor belt for goods in 2022. The U.S. companies are struggling with soaring raw materials and shipping prices along with extended delivery times and worker shortages as the Chinese manufacturers that ship lots of imports to the U.S. are facing renewed shutdowns due to the rising covid cases in the country. The forced closure of major feed grade manufacturers in China, including Zhejiang Medicine Co., Ltd. and Zhejiang NHU Co., Ltd., have largely affected the supply of several nutraceutical products, including Vitamins in the U.S.

As per ChemAnalyst, the prices of Vitamin C are rapidly increasing in the U.S. domestic market on the back of the consistently rising demand from the downstream pharmaceutical industry. Vitamin C prices were last assessed at USD 7790 per MT CFR Los Angeles on 14th January and are likely to increase further in the forthcoming period. Due to the Omicron hit, several commodities were stuck on different ports as the spread continued overseas raw materials, production, and shipping capabilities remain limited. The upsurged prices of raw materials, container shortages, as well as supply chain issues, including cargo ships backlogged at Los Angeles and other ports.