Global Vitamin B4 Prices Fall Due to Decreased Demand and Market Challenges
Global Vitamin B4 Prices Fall Due to Decreased Demand and Market Challenges

Global Vitamin B4 Prices Fall Due to Decreased Demand and Market Challenges

  • 16-Aug-2023 3:48 PM
  • Journalist: Nicholas Seifield

The price of Vitamin B4 remained on a declining trajectory due to a surge in domestic supply coupled with a decrease in demand from the downstream industry. Additionally, the market dynamics of Vitamin B4 were affected by weaker trade activity, currency fluctuations, and extreme weather events. Vitamin B4, also called Folic Acid, Adenine, or pantothenic acid, is the building block of the human body. It directly or indirectly impacts the human body's energy levels, brain function, and cell metabolism.

China's economy continued to experience new difficulties and challenges, resulting in a slower-than-expected pace of economic growth in July. According to the National Bureau of Statistics (NBS), July's official manufacturing PMI (Purchasing Managers' Index) stood at 49.3 compared to June's reading of 49.0, suggesting a contraction rather than an expansion. Business and production declined as overseas orders decreased and domestic demand remained weak, resulting in a decrease in the prices of Vitamin B4. The strengthening of the Chinese yuan against the dollar resulted in reduced exports and increased supply, further dampening the demand for Vitamin B4 in international markets.

The manufacturing PMI in the U.S. in July was 46.4, which is 0.4 percentage points higher than the 46.0 recorded in June. This month's manufacturing PMI reading suggests that economic activity in manufacturing decreased for the ninth consecutive month in July, after 28 consecutive months of expansion. A decrease in purchasing, selling, and new order in the U.S. market weakened domestic demand for Vitamin B4. Furthermore, the U.S. Federal Reserve's interest rate hikes have further reduced the demand in the market, which has further supported the downward trajectory of Vitamin B4 prices.

In Germany, the manufacturing sector continued to grapple with challenging business conditions. Good producers reported significant output drops and factory gate prices, highlighting the worsening state of affairs. One of the main drivers of the decline was the sustained sharp downturn in new order inquiries, which experienced the most significant decrease in over three years. There was a weak demand across all product categories, with consumers taking a cautious stance and decreasing their inventory levels. The economic and geopolitical uncertainties and tightening financial conditions led to a sharp and rapid decrease in sales.

The ChemAnalyst analysis indicates that the price of Vitamin B4 has continued to decrease due to persistent lower demand from the end-user nutraceutical, food, and pharmaceutical industries and an abundance of inventory in the market. Furthermore, the Vitamin B4 market is likely to remain on a bearish trend due to weaker trade activity.

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