For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of Carnitine in the North America region experienced significant fluctuations influenced by various factors, ultimately creating a positive pricing environment. Throughout the quarter, prices consistently increased, largely driven by heightened demand from downstream industries, particularly in the nutraceutical and healthcare sectors.
However, several challenges impacted market dynamics during this period. The spring festival in China, supply constraints, and logistical hurdles posed obstacles for market participants. Tight supply conditions were further exacerbated by disruptions in key maritime routes such as the Red Sea and Panama Canal, leading to shipment delays and increased shipping costs. Additionally, the tightening of warehousing capacity added to supply constraints, contributing to the overall upward pressure on prices. Despite these challenges, the market situation in the USA remained relatively stable, with a bullish sentiment prevailing. This stability is attributed to the robust performance of the US economy, characterized by encouraging signs across various fronts, including business activity, consumer sentiment, and inflation.
Overall, the pricing environment for Carnitine in Q1 2024 was characterized by positivity, albeit with fluctuations driven by changes in demand and supply dynamics.
Asia Pacific
In Q1 2024, the pricing dynamics of Carnitine in the APAC region, particularly in China, exhibited notable fluctuations influenced by various factors beyond typical market influences. Despite the overall trend indicating a price increase, the underlying analysis reveals a diverse set of factors contributing to this trajectory. The quarter commenced with a notable increase in demand from downstream sectors and a surge in export orders, resulting in a modest uptick in prices. Positive market sentiment persisted, supported by consistent demand from both domestic and international markets. As February progressed, prices continued to climb, primarily driven by limited inventories. The Spring Festival resulted in factory shutdowns and reduced production capacity, leading to a shortage in the market. Even after the holiday period, supply remained insufficient as production took time to normalize. The supply-demand gap was further exacerbated by increased inquiries from major markets like the USA and Europe as the supply chain eased. This heightened demand, coupled with constrained supply, contributed to the upward pressure on prices. Despite these challenges, the overall outlook remained positive, with steady demand from downstream industries and anticipated growth in demand from overseas markets.
Europe
In Q1 2024, the pricing dynamics of Carnitine in Europe were shaped by a multitude of factors, resulting in a complex and fluctuating market environment. Geopolitical tensions and logistical challenges continued to disrupt the supply chain, leading to a scarcity of Carnitine in the market. This limited availability was further compounded by heightened demand from the nutraceutical and healthcare sectors, which increased pressure on prices. Germany, as a key player in the European market, faced similar challenges with Carnitine prices. The onset of Chinese New Year festivities in mid-February prompted many suppliers to adjust their prices in anticipation of reduced market activity during the holiday period. This adjustment reflected the cautious approach of market participants in response to the expected slowdown in demand. Prolonged disruptions in the Red Sea further complicated trade routes between Asia and Europe, resulting in increased freight costs. These higher transportation expenses influenced the pricing landscape of Carnitine in Germany, adding to the overall cost of the product. Moreover, the moderation of inflation in Germany encouraged increased spending by businesses and consumers, driving up demand for Carnitine and contributing to additional price hikes. Industry players took advantage of these favorable market conditions to quote higher prices, exploiting the existing demand-supply imbalance to maximize profits. Overall, the pricing dynamics of Carnitine in Europe during Q1 2024 were influenced by a combination of geopolitical tensions, logistical challenges, changes in consumer behavior, and inflationary pressures, creating a challenging and volatile market environment for Carnitine suppliers and buyers alike.
For the Quarter Ending December 2023
North America
The Carnitine market in North America encountered challenges during the fourth quarter of 2023, experiencing fluctuations in prices and supply due to several factors. Firstly, the market grappled with limited inventories, resulting in a constrained supply of Carnitine, primarily stemming from weakened trading activities with major exporting nations. Secondly, demand for Carnitine remained moderate throughout the quarter, driven by consistent consumption in the nutraceutical and healthcare sectors. Lastly, inflationary pressures and heightened transportation costs contributed to an overall increase in prices.
The strength of the dollar against currencies like the Chinese yuan led to higher import costs, further impacting Carnitine pricing. In the USA, the largest market in North America, Carnitine prices saw a marginal increase in the fourth quarter. Despite concerns surrounding inflation and elevated prices, consumers exhibited confidence in the US economy. The steady demand from end-users, particularly in the nutraceutical and healthcare industries, played a crucial role in maintaining price stability. Furthermore, effective inventory management practices ensured the availability of Carnitine.
Overall, the Carnitine market in North America faced challenges in the fourth quarter, characterized by limited supply, moderate demand, and inflationary pressures.
APAC
In the APAC region, the fourth quarter of 2023 saw a mixed market for Carnitine. The market was influenced by several factors throughout the quarter. Firstly, there was an increase in demand from the nutraceutical and healthcare sectors, driven by new inquiries and sales, which led to a slight increase in prices. Secondly, the overall market sentiment showed improvement compared to the previous quarter, with expanded supply and demand, improved logistics, increased purchasing volumes, and a heightened sense of optimism among manufacturers. This positive market sentiment contributed to the upward movement in prices. Additionally, China, being a major player in the Carnitine market, experienced a notable uptick in new orders from the domestic market, leading to a surge in demand and subsequently higher prices. In terms of price trends, there was a significant increase in prices compared to the same quarter of the previous year, with a percentage change of -23%. This can be attributed to the overall improvement in market conditions and increased demand. Furthermore, there was a substantial price increase of 72% from the previous quarter, reflecting the strong market momentum and heightened demand. In terms of price comparison within the quarter, there was a price percentage increase of 69% between the first and second halves of the quarter. This indicates a significant price movement within a short period, highlighting the fluctuating market dynamics. In China, the prices for Carnitine reached USD 20100/MT FOB Shanghai at the end of the quarter. This increase in price can be attributed to the surge in demand from both domestic and overseas markets, coupled with limited supply. Overall, the Carnitine market in the APAC region experienced a positive quarter, driven by increased demand and market improvements.
Europe
In the fourth quarter of 2023, Carnitine pricing in Europe was influenced by various factors. Firstly, a scarcity of available stock in the market led to price increases. Additionally, high energy prices and transportation costs contributed to these price hikes. Despite these challenges, demand for Carnitine remained moderate, supported by easing inflationary pressures and increased consumer confidence. Germany, in particular, experienced significant impacts on prices. The country witnessed a decrease in inflation, reaching its lowest level since the onset of the Russia-Ukraine conflict. This decline in inflation bolstered consumer confidence and contributed to the uptick in Carnitine prices. One of the primary drivers was disruptions in the global supply chain of Carnitine, leading to limited availability. This scarcity prompted market players to raise prices to ensure profitability. Furthermore, decreased exports from China to the European Union also resulted in diminished inventories in the German market, further fueling the upward trajectory of Carnitine prices. Overall, market sentiments remained elevated due to consistent demand, limited supply, and sluggish imports in the domestic market.
For the Quarter Ending September 2023
North America
Carnitine prices demonstrated a mixed trend in Q3 and declined in July and August but increased in September. Business activity in the United States fell in the third quarter due to weaker demand from both domestic and international markets. In the United States, inflation rose to 3.7% in August for the first time since June 2022, as a sharp surge in energy prices pushed prices higher near the end of the summer, weighing even more on consumer confidence. Inflationary pressures imply that the US economy is drifting away from the Federal Reserve's 2% target rate, prompting authorities to consider raising interest rates later this year. The Federal Reserve raised its key policy interest rate by 0.25 percent in July, the eleventh time in 17 months, to battle persistent inflation in the US economy, which has resulted in decreasing market demand. The Consumer Price Index rose 3.7% in September, slightly more than the 3.6% predicted. Energy expenses increased 1.5%, with gasoline prices up 2.1% and fuel oil prices rising 8.5%. Furthermore, imports from China were sluggish, keeping Carnitine prices high.
Asia Pacific
Carnitine prices declined by 22.73% and 2.10% in July and August, respectively, but increased in September by 0.43%. The Chinese economy was met with additional hurdles and challenges, slowing economic growth. The official manufacturing PMI (Purchasing Managers' Index) was 49.3 in July, according to the National Bureau of Statistics (NBS). However, this score remained lower than 50, suggesting shrinkage rather than expansion. Lower overseas orders and sales have hindered business and industrial activities. Inflation and increasing interest rates in the US, Europe, and important export markets continue to weigh on Chinese demand, with the new export order sub-index decreasing for the sixth month in a row in August. Furthermore, China's central bank reduced its main interest rate amid economic concerns, which helped to stimulate market consumption, raising Carnitine prices in China. China's manufacturing purchasing managers' index (PMI) gently soared back into the expanding zone in September, exposing the restoration of industry activity and signaling a hopeful economic revival within the country.
Europe
The prices of Carnitine exhibited a diverse pattern in the third quarter, with a decline observed in the months of July and August, followed by an increase in September. The purchasing managers' index (PMI) in Germany was 41 in July, indicating a continued decline in new orders from both domestic and worldwide markets despite ample stocks available among market players. Furthermore, the month of August saw a continued lack of consumer confidence as a result of the steady increase in interest rates, surging inflation, the ongoing oil crisis, and the complexities of global affairs. The continual rise in inflation, largely due to the excessive pricing of energy supplies and oil, harmed consumer spending power and led to the downward trajectory of Carnitine prices. Although, prices increased in September, indicating a comeback in consumer confidence in the German market. This present trend might be attributed to a variety of critical factors, including a scarcity of available inventory, rising energy prices, and growing end-user demand.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, the North American L-carnitine market revealed an unfavorable pricing chart. Substantially lower demand for L-carnitine in the United States as a result of downstream nutraceutical firms' abundant stocking was the primary driver of the significant price drop across the country. Despite this, the nutraceuticals sector in the country has demonstrated a disconnected pattern of market activity due to varied viewpoints on the expense of dietary supplements. Given that there has been a drop in inflation starting in April, experts also believe that it has been due to the relaxation of supply chain pressures and is just transitory. The country's domestic supplement market has been mixed, with costs varying for every other product, including other amino acids. Rising labor costs, on the other hand, might keep inflation high, prompting the Fed to raise interest rates again in July. Market participants in the food and dietary supplement industries are still on the fence because the state of the US economy is still unknown.
Asia Pacific
As price negotiations in China plunged from $19850 per tonne to $15400 per tonne FOB Shanghai between April and June, the Asia-Pacific market for L-carnitine exhibited a plummeting trend in the second quarter of 2023. This price decline began at the beginning of the quarter in China and grew quite persistent in the middle as demand for L-carnitine from the downstream nutraceutical sectors declined significantly on a global and domestic level. Due to fallen demand and consumer queries, Chinese L-carnitine manufacturers were forced to sell the product at substantially lower margins. China's manufacturing activity dipped in June for the third consecutive month, although at a slower rate, according to the Stats. The statistics are being revealed as pressure mounts on the government to expand intervention expenditure in order to support an economy that is leveling out after an initially strong post-COVID comeback in Q1 2023. The nation's pharmaceutical and nutraceutical industries are coming under further pressure, according to the June PMI, which also revealed a number of imbalances and flaws, including drops in both domestic and foreign demand, accelerating declines in firm activity, and sustained losses in both.
Europe
The European L-carnitine market was quite adverse in Q2 2023, with price negotiations dropping in the German market. One of the main reasons for this price drop in Germany was a combination of decreased demand from downstream sectors and high supplier inventories. In Europe, gas prices for energy have fallen to their lowest levels since the crisis began in April. This increased optimism for a more significant economic recovery, which undoubtedly benefited trade with Asia but low demand for carnitine did not favour the market. A sudden rise in unemployment in Germany during June, on the other hand, had a significant negative influence on the market climate. L-carnitine was stockpiled by retailers in warehouses to avoid future shortages, which caused them to lower their price margins later in the quarter to clear their stocks. Although the country's L-carnitine sector has not yet been impacted, Germany's inflation climbed by more than 6% again in June. Market participants are floundering and remain negative about the state of the country's economy, like the rest of the world.
For the Quarter Ending March 2023
North America
L-Carnitine pricing in the North American region exhibited a depreciating market position throughout the first quarter of 2023. Prices decreased consistently during the quarter because of reducing raw material costs. The domestic and international markets decreased demand had a part in the unfavorable market situation. The accumulation of stocks brought on by the end-user sector's decreased demand forced the merchants to drop their quotations to destock and clear out the stock. Additionally, the fact that freight and transportation costs have significantly fallen has only contributed to the market's declining conditions. The market was also impacted by logistical problems and the ease of trade activity.
Asia Pacific
The prices of L-Carnitine in the APAC region demonstrated decelerating market situation throughout the first quarter of 2023. Towards the end of Q4 2022, the price of Carnitine was recorded at USD 22500/MT FOB Shanghai with an average quarterly declination of 13.21%. The prices depreciated continuously throughout the quarter with decreased raw material prices. Decreased demand from both the domestic as well as international market further supported the pessimistic market situation. This decreased demand from the end-user sector eventually resulted in stockpiling of inventories which compelled the merchants to lower their quotations to destock their inventories and clear out the stock. Also, merchants decided to roll back to pre-pandemic prices, which increased during the previous quarter.
Europe
Throughout the first quarter of 2023, L-Carnitine prices in the European region showed a slowing market position. Throughout the quarter, prices declined steadily due to falling raw material costs. Reduced demand from both the domestic and international markets contributed to the negative market environment. The merchants were forced to lower their quotations to destock their inventories and clear out the stock because of the amassing of inventories caused by the end-user sector's decreased demand. Also, as the freight and shipping charges decreased many folds, it further added to the depreciating market situation in the European region. Ease in trade activities and logistic issues also influenced the market.
For the Quarter Ending December 2022
North America
North American region, primarily the United States market, the prices of Carnitine plummeted during the final Quarter of 2022. With the start of the fourth quarter er, the prices increased considerably. The prices witnessed an increment during the first half of the fourth quarter due to rising inflation, numerous logistic issues, and higher manufacturing cost in the export country. Additionally, prices began to drop progressively in the middle of the fourth quarter because fewer inquiries kept the stocks at their highest levels later in December. Also, with ease in inflation and other logistics, the prices decreased in the month of December.
Asia Pacific
The prices of Carnitine in the Asia Pacific region, majorly in China, demonstrated decelerating market situation throughout the fourth quarter of 2022. From October, the prices for Carnitine declined considerably. Following November, the official manufacturing purchasing managers index (PMI) fell to 48.0 in November, slipping well below last month's reading of 49.2 along with reducing inquiries kept the prices of Carnitine on the lower side. Also, lowering end-user sector demand and enough inventories among the market players further supported the market trajectory in the APAC region. Ease in strict zero covid policies also kept the market situation feeble towards the end of Q4 2022. Towards the end of Q4 2022, the price of Carnitine was recorded at USD 34750/MT.
Europe
Prices for Carnitine in the European region showed a see-saw tendency in the fourth quarter of 2022. In the first two months of Q4, the demand for Carnitine in the downstream pharmaceutical industry was seen to be steady. The supply chain was impacted by the continuous port congestion and supply disruption in the European region, which forced an increase in pricing. High freight costs were another factor in Carnitine's upward trend. Due to the impending holiday season, European retailers have decided to refill their stocks in large quantities. However, prices declined due to existing stocks and declining end-user sector demand in December.
