For the Quarter Ending December 2022
The North American market for Biotin commenced the Q4 of 2022 on a declining note, with FOB Illinois prices settled at USD 375450/MT in October due to sluggish demand from the downstream pharmaceutical sector in the United States. Production rates remained optimum despite low consumption rates in the domestic market. However, these prices continued to drop in November and fell even further to USD 313060/MT in December in the US domestic market. The US supply chain gradually became better in H2 of 2022 as the country finally started to recover, and the port on the east coast significantly reduced ship backlogs. The US supply chains were adaptable because of reduced shipping demand brought on by slower consumer spending and a fall in manufacturing activity in December. In America, despite challenges from dwindling government assistance, reductions in net worth, rising interest rates, and depreciation of actual earnings and wealth through price rises, all of which have influenced the country's overall market condition.
During the fourth quarter of 2022, the Biotin market exhibited sluggish market sentiments across the Asia Pacific region, with prices declining from USD 265450/MT in October to USD 230650/MT in December. The Golden week closure of industrial facilities in China from October 1 and 7 resulted in a slow rate of contraction in the manufacturing sector this month. The market for Biotin was weak after returning from the Golden Week Holiday. After that, the ongoing lockdown measures in some parts of China due to rising COVID-19 cases led to production, operations, and logistics uncertainties. Both poor purchasing activities amid bleak demand for Biotin from downstream pharmaceutical industries resulted in a downward trend as buyers were in a solid wait-and-see attitude. In terms of supply, the manufacturers of Biotin in the Chinese domestic market had enough inventories as they received minimal orders from domestic and international buyers.
In the German market, the prices of Biotin scaled down from USD 268461/MT to USD 241210/MT from October to December. The decline in the German market during the fourth quarter of 2022 was due to sufficient inventory among domestic merchants. Also, the demand from downstream pharmaceutical and healthcare industries decreased significantly throughout the quarter as buyers were cautious before making any purchases. As a result, the traders reduced the prices to increase the purchase of their goods. However, Covid 19 issues, the situation in Russia, and the state of war in Ukraine all continued to have a detrimental effect on output.
For the Quarter Ending September 2022
Prices for Biotin in the US domestic market fell sharply during the third quarter of 2022, from USD 395250/MT to USD 368750/MT from July to September. The US Biotin market saw a decline in demand from downstream pharmaceutical and nutraceuticals industries following the slow offtakes in downstream sectors. In the US market, the growing recession fear has increased the interest rate resulting in weakened consumer spending. Additionally, the market sources informed that the accelerated supply of Biotin has been enough to fulfill the orders. These factors had a substantial influence on the downward pricing trend of Biotin, which decreased by more than 17% on a quarterly basis.
The price trend for Biotin in the Asia Pacific showed a downward trajectory throughout the third quarter of 2022. The prices of Biotin in China significantly decreased by around 7.7% in August and declined further by 2.4% in September. In the Chinese domestic market, there was enough stock of Biotin with the local suppliers, and the price was lower than the production cost. Only purchases for immediate consumption were observed from significant suppliers; otherwise, demand from downstream industries remained weak during the entire quarter. Thus, the FOB Shanghai prices for Biotin in China were assessed at USD 279700/MT in September.
German Biotin price trend showcased a downward trajectory during the third quarter of 2022, with values for CFR Hamburg estimated at USD 317600/MT in July and later settled to USD 283930/MT in September. However, the quarter's downward price trend was backed mainly by the lowest price quotation from the significant importing country, China which seems quite beneficial for German buyers. Moreover, inventories of Biotin were sufficient to cater to the overall demand, resulting in lower Biotin prices in the domestic market. Also, demand from end-user pharmaceutical and neutraceutical industries remained sluggish as the customer was buying as a necessity. Furthermore, Germany's logistical problems worsened the economic slump as transportation bottlenecks persisted this quarter.
For the Quarter Ending June 2022
Between April and June of 2022, the price of Biotin in the domestic market of North America decreased significantly, falling from $470825 per MT to $445550 per MT. The demand from the pharmaceutical and nutraceutical industries remained strong during the quarter following the continuous offtakes in downstream industries. Several US importers shifted some imports from Asia to the east coast only to discover that congestion there was far worse than on the Pacific coast due to the prolonged port congestion and supply outages at west coast gateways. Though there were no labor contract negotiations in the ports along the eastern shore, there were still issues with space and labor compared to those on the west coast. Due to the fact that long-term inflation expectations remained anchored, the political situation between Russia and Ukraine did not improve, and the extreme unpredictability of oil prices, domestic merchants were concerned about the high raw material prices throughout the quarter.
In the second quarter of 2022, the domestic Biotin market in the Asia Pacific region showcased a decreasing trend due to the frequent lockdowns in the major production centers. In the domestic Chinese market, FOB Qingdao values plunged precipitously between April and June, from $402800/mt to $315500/mt. The implementation of lockdowns during the final week of April led to various responses on the nation's nutraceutical markets, which is one of the main factors supporting this pricing trend. Demand-wise, offtakes from the end-user industries remained consistent over the quarter. The ludicrous Zero-COVID policy caused many cargo ships to become stuck in China's ports, raising inflation and freight costs. Due to the high COVID tariffs, several factories were prepared to offer the product at low quotations toward the end of the quarter to eliminate inventories before they deteriorate. Ex-location (Mumbai) pricing in the domestic Indian market also dropped during the quarter, going from INR 37950500/mt to INR 37150248/mt.
Following the constancy in the offtakes from the end-user sectors, the Biotin market in the European region displayed favorable sentiments during the second quarter of 2022. The costs did, however, later start to drop in June. The Russia-Ukraine conflict significantly raised freight costs and affected the European supply chain, which impeded trade activity from the importing countries. Throughout the quarter, demand from end-user industries such as the pharmaceutical and nutraceutical sectors remained stable. The domestic traders have an adequate supply of goods to satisfy all domestic demands.
For the Quarter Ending March 2022
After a decrease in prices of Biotin in Q4 2021, the price trend of Biotin in the first quarter of 2022 demonstrated an upward trajectory across the North American region. Biotin prices gradually increased from the second week of January from USD452965/MT to USD464690/MT in March 2022. Demand from the downstream nutraceutical and pharmaceutical industries remained high throughout the quarter. Increased maritime freight rates, as well as high raw material costs in Asia, have aided the country's price trend. The protracted port bottleneck and disrupted supply caused by China's zero-covid policy, on the other hand, had a severe impact on Biotin market across the country. The spike in US oil output that began in Q4 2021 has maintained the pressure on downstream markets high. Due to supply concerns and an unanticipated dip in stockpiles, crude oil prices have continued to increase after a 14 percent surge in January, further supporting the country's Biotin pricing trend.
Asian market of Biotin witnessed an upward momentum in the 1st quarter of 2022 on the back of the consistent offtakes from the downstream sectors. In China, the prices of Biotin rose from USD439180/MT to USD443550/MT FOB Qingdao from the month of January to March. Several feed grade producers in China halted their operations in late December in one of the country's largest manufacturing hubs for nutraceutical products due to mounting covid instances, bolstering the country's Biotin prices. Another reason driving the price increase in the spot market was price competition among Biotin manufacturers. Because China has mainly implemented a zero-tolerance coronavirus policy, the closure of major ports and factories in the run-up to the Lunar New Year and the Winter Olympics wreaked havoc on Biotin's supply chain in February, which later got stabilized in the market. Biotin talks for Ex-Mumbai and CFR JNPT in the Indian market were valued at USD533608.25/MT and USD494257.56/MT in the month ending March, respectively, as the supply of the product from Asia improved in the local market following the festive vacations. During the Omicron outbreak, however, a devastating container scarcity and increasing freight prices put purchasers' business trust in shambles.
The European market of Biotin showcased positive sentiments during the quarter 1 of 2022 as the demand and consumption of the product remained consistent in Nutra and pharma industries. Nutraceuticals including Biotin have largely become a requirement for consumers, especially in developed markets such as the European region, as life expectancy has increased, and lifestyle-related disorders have also grown. The supply chain disruptions continued to bother the Biotin market during the first quarter of 2022.
The prices of Biotin slightly declined from USD 468370/MT to USD 465700/MT FOB Illinois in the 4th quarter of 2021 in the US, North America. In the domestic US market, the cost of production improved in Q4; however, the raw material prices remained stagnant. In terms of demand, offtakes from the downstream nutraceutical industry kept the supply fundamentals in check. Market participants have quoted that market dynamics have stabilized in the last few weeks of November due to the volatility in energy feedstocks coupled with the strengthening shipping industry that has contributed toward price fluctuations during the quarter. The market sentiments are anticipated to improve in the forthcoming period.
During the fourth quarter of 2021, the pricing trend of Biotin showcased an upward trajectory in Asia. In China, Biotin prices escalated from USD 438588/MT to USD 470286/MT FOB Qingdao from October to December. Due to the new guidelines proposed by the Chinese authorities under “dual control on power consumption” to contain carbon emissions and restrict power consumption, several upstream facilities curtailed the operational loads, which surged the offers for fuel and raw material and significantly impacted the prices of Biotin in the domestic market. The positive market situation in China is majorly attributed to the persistent measures taken by the Chinese authorities to curb the power rationing by commissioning new coal mines. Consistent hike in the raw material prices provided adequate cost support to the Biotin. However, due to the resurgence of the COVID cases in December, the prices started to decline as the producers and traders were destocking their running inventories. In India, the prices of Biotin started to decline in December and were lastly settled at 33671790 per MT/ Pharma Grade Ex-Mumbai. In terms of demand, offtakes remained strong from the health and nutrition sectors, with an increment of around 3% in October.
The market sentiments improved in the European market during the 4th quarter of 2021 on the back of the increased demand from the feed grade industries. However, the supply outlook of Biotin remained disrupted throughout the quarter due to the energy crises across Europe. The demand for upstream fumaric acid as it is widely utilized in the commercial production of Biotin witnessed moderate growth due to growing health-consciousness in the region, which supported the market outlook in Q4.