Vitamin C prices in China dropped 0.8% in the 4th week of October, as the 12-week bearish trend continued due to high inventory and steady but flat export. Full capacity production in the quarter led to big inventory accumulation, while stable cost of acetone and corn starch kept production cost stable but did not support the price. Export volume was steady rather than up, as global buyers had enough stock and were cautious in replenishment. Domestic demand was also soft, as pharmaceutical and nutraceutical companies were using up existing stock and delaying new procurement due to expectation of further price drop. Despite efficient logistics and smooth trading in Shanghai, the market was still burdened by oversupply and lack of buying interest. With inventory still high and downstream not in hurry to restock, market expects Vitamin C price to go down further as October ends, and the bearish trend continues.
