The Prices of Vitamins in the U.S are projected to remain buoyant due to sufficient inventories
- 11-Feb-2022 3:20 PM
- Journalist: Nicholas Seifield
The markets in the United States remain in a demand-driven, supply chain-constrained environment, with growing indications of improvements in labor resources and supplier delivery performance. In the past few years, the U.S. Nutraceutical industry has witnessed dramatic changes and consolidation of supply in domestic as well as international markets. As nutraceutical products, including several vitamins, provide numerous health advantages and additional nutrition to the human body, its demand has significantly risen across the U.S. among health-conscious consumers for preventive care and their overall well-being. These nutrients also help in averting medical conditions such as immunity problems, heart diseases, diabetes, hypertension, and allergies.
The U.S. trade deficit with China grew to the largest on record by almost 27% to more than $800 billion in 2021, reflecting an extraordinary escalation in the value of imports amid the restocking of shelves by traders to meet robust domestic demand. The trade deficit increased by 1.8%, and the imports rose by 1.6% in the month of December alone, showcasing a hike as the Chinese manufacturers were seen destocking their inventories ahead of the Lunar New Year and Beijing Winter Olympics.
As Per ChemAnalyst, the prices of Vitamins are anticipated to remain buoyant in the domestic market due to the sufficient availability of inventories among the U.S. market players. The FOB New Jersey discussions for Vitamin B2, Vitamin B9, and Vitamin D were assessed at $62900/t, $52235/t, and $21500/t, respectively, on the week ending February 4th. Whereas the prices of Vitamin C and Vitamin E got settled at $8050/t CFR Los Angeles and $25650/t FOB Illinois.
According to a senior economist in North Carolina, the need to replenish inventory in the U.S. will keep imports strong even as domestic demand transitions back to services. The U.S. traders fearing loss aversion, supply chain disruptions, and closure of markets in China, stocked their inventories more than necessary, due to which the Vitamins are likely to remain available in the market for some time. To ensure economic prosperity and national security, the U.S. government is developing policies to protect and strengthen several critical supply chains of products, including pharmaceuticals and active pharmaceutical ingredients (API).