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.
