Vitamin B2 Prices in China are Projected to Remain Stable due to Market Equilibrium
- 24-Feb-2022 5:05 PM
- Journalist: Xiang Hong
After the Lunar New Year celebrations and Beijing Winter Olympics, the markets in China have resumed their domestic operations at an exponential pace. The Chinese manufacturers were earlier struggling with challenges ranging from weak local manufacturing, curbs due to rising Omicron cases, factory closures, port restrictions, and others, due to which the economic trends went quite disappointing from the start of 2022 across the country. The authorities of the country are now promoting the concept of low production costs and feedstock prices in order to flatter the economy and make 2022 productive, which started on a note of several uncertainties in terms of global trade, including covid outbreak and geopolitical tensions.
Several market participants are still anxious about the industries, including nutraceuticals, that the growth of orders and new clients from the international markets can be affected by the pandemic, which could result in a significant slowdown in the export market, despite market resumption.
As per ChemAnalyst, the prices of Vitamin B2 are anticipated to remain firm in the domestic market as the demand and supply have become stable in China after the festive break. The orders for Vitamin B2 were placed sufficiently before the CNY from domestic as well as from offshore markets, due to which the production and demand are now in a constant trajectory across the country.
According to an industry expert, "As coronavirus slowly wanes in the world, global demand might shift from commodities to services, which will exert a negative impact on China's export growth this year." He also added that the improvement of the coronavirus pandemic would ease supply chain tightness and cause products that are stockpiled at ports to flow into selling channels, which will hurt global exports to some extent as it will take some time to digest the inventory. However, due to the presence of enough inventories in China, traders stockpiled their shelves of supplies ahead of the festive holidays, due to which the domestic market has enough supplies to cater to the overall demand.