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.
For the Quarter Ending December 2021
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.