Vitamin B4 Prices Show Bearish Trend in US and Germany Amidst Economic Slowdown
Vitamin B4 Prices Show Bearish Trend in US and Germany Amidst Economic Slowdown

Vitamin B4 Prices Show Bearish Trend in US and Germany Amidst Economic Slowdown

  • 12-Sep-2023 5:21 PM
  • Journalist: Rene Swann

The prices of Vitamin B4 demonstrated a downward trend in the USA and German markets due to decreased demand from end-users, with declining sales, purchasing activity, and inquiries for new orders. There was adequate stock among market vendors to satisfy the existing demand in the market. Vitamin B4, also known as Choline chloride, is an essential nutrient that is commonly used as a supplement in animal feed additives. In recent times, there has been a decrease in the demand for vitamins and supplements, which has led to a decrease in the prices of Vitamin B4.

The US economy continues to suffer from high inflation and constant rate increases by the US Federal Reserve. The Federal interest rate hikes aim to increase the costs of borrowing and investing, thereby reducing the aggregate demand for goods, services, and labor within the economy. It showed that consumers remained cautious about their spending due to higher interest rates and persistently high inflation, thus keeping the demand for Vitamin B4 on the lower side, thereby supporting the downward trajectory of Vitamin B4 prices. In August, the US dollar appreciated against the Chinese Yuan, making the import of Vitamin B4 cheaper from China. As a result, the availability of Vitamin B4 increased in the US market, which further contributed to the downward trend in Vitamin B4 prices.

In the German market, Vitamin B4 prices are following a similar trend. The biggest economy in Europe, Germany, is currently facing significant difficulties as a result of ongoing economic challenges. The inflation rate in Germany, the year-over-year change in the Consumer Price Index (CPI), was noted as +6.1% in August 2023. The inflation rate was 6.2% in July 2023. The main cause of high inflation that has slowed Germany's potential for growth is the rise in energy prices alongside rising oil prices. Energy product prices increased to 8.3% year on year, following an increase of 5.7% in July 2023. The continued high rate of inflation harmed consumer confidence and supported the decline in Vitamin B4 prices. German business activity declined in August at its steepest rate in over three years. Businesses remained gloomy about the outlook due to rising interest rates, stubbornly high inflation, and customer uncertainty continued to weigh on demand for goods and services.

As per the ChemAnalyst analysis, Vitamin B4 prices are anticipated to rise in the coming month at a moderate pace due to improvement in demand from the end sectors. The central banks are likely to pause interest rate hikes, rebounding the consumer's confidence and supporting favorable market dynamics.

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