For the Quarter Ending March 2022
North America
In quarter 1 of 2022, the domestic market trend of CoQ10 demonstrated a drastic improvement across the North American region after the CIF Los Angelesvalues rose up from USD517490/MT to USD527765/MT from January to March 2022. The demand for CoQ10 has increased dramatically in the United States among health-conscious customers in order to change dietary patterns. Higher feedstock, freight, and transportation prices have also aided the price trend of CoQ10 in the US market, as the commodity is primarily imported from China. During the month of February, some American importers struggled to satisfy demand, as inventories remained low and supply lines were stretched to handle historic amounts of cargo, particularly from Asia. In terms of demand, pharmaceutical industry offtakes in the US domestic market remained consistent due to sufficient supply that met downstream demand for the time being. The trade situation from Asia was further exacerbated by tensions between Russia and Ukraine.
Asia Pacific
During the 1st quarter of 2022, the pricing trend of CoQ10 showcased positive sentiments across the Asia Pacific region. In China, the prices of CoQ10 were assembled at USD490200/MT in the first week of January which later rose and settled to USD492975/MT on the week ending March 25th, 2022. Due to a spike in covid cases in China, some manufacturing units, notably NHU and ZMC, were forced to close to prevent the virus from spreading, resulting in higher CoQ10 pricing since then in the country. Chinese factories and enterprises were closed throughout the quarter as part of the government's zero-covid policy, which was established to stop the spread of a highly contagious strain of the coronavirus. In the Indian domestic market, however, the discussions for Ex-Mumbai and CFR JNPT in the month ending March were estimated at USD487375/MT and USD481290/MT, respectively.
Europe
The European market of CoQ10 showcased a positive outlook in the first quarter of 2022 on the back of the increased demand from the end-user industries. Nutraceuticals are gaining popularity in Europe and are increasingly becoming a part of people's everyday diets, which is one of the main factors driving the demand for CoQ10 across the region. Manufacturers were forced to trade CoQ10 on quoted pricing due to still high freight and feedstock expenses, as well as high input costs due to the peaking energy crisis.
For the Quarter Ending December 2021
North America
During the 4th quarter of 2021, the pricing trend of CoQ10 showcased a marginal improvement across the North American region. The prices of CoQ10 escalated by 0.5% from USD 516120/MT to USD 518700/MT CIF Los Angeles from October to December. In terms of demand, offtakes from downstream industries, including pharmaceutical, cosmetics, and others, remained stable throughout this quarter. The slight increment in CoQ10 prices was observed in the US domestic market due to strengthening supply fundamentals and consistent volume intakes. Sluggishness in the Asia-Pacific CoQ10 market during the 4th quarter has caused a slowdown in the global market which has been reflected in market sentiments in the US.
Asia Pacific
The market trend of CoQ10 demonstrated mixed sentiments across the Asia Pacific region in the fourth quarter of 2021. In China, the pricing trend of CoQ10 demonstrated a downward trajectory due to the slowed demand and pressurized supply amid the forced closure of NHU and ZMC facilities in the Zhejiang province in December. The prices of CoQ10 dropped by 5.7% and deescalated from USD 535065/MT to USD 505271/MT from October to December. Several major manufacturers stopped taking orders in the month of October due to volatility in the raw material prices. With several factories exposed to energy curbs and soaring freight charges, manufacturers seemed cautious over the offering of the material in the Chinese domestic market during this quarter. The price competitiveness soared drastically in Q4 amongst the producers in anticipation to capture a larger market share and gain better netbacks amidst the inventories destock spree, which further supported the downward price trend in China. Whereas in India, the domestic market trend of CoQ10 remained stagnant, and the Ex-Mumbai prices got settled at USD 509988 per MT in the week ending of December. The demand from the domestic market remained stable while availability remained ample enough to cater to the overall need.
Europe
In the European region, the prices of CoQ10 mimicked the USA price trend in the fourth quarter of 2021 as the prices inched higher in October and gradually gained numbers during November and December. The soaring freight and feedstock charges, along with high input costs due to the peaking energy crisis, weighed heavily on the manufacturers forcing them to trade CoQ10 on quoted prices. In terms of demand, offtakes from the dietary supplement consumers in Germany remained strong throughout this quarter.
Supply fundamentals have been stable amid the rising freight charges and shipping costs, although the increase in freight charges and shipping costs still commanded the final pricing for CoQ10 in Q3. Demand growth from the pharmaceutical, cosmetics, and dietary supplement segments in early Q3 has further pushed the prices northwards. Market participants were found vigilant in the market and deferred from commenting about the future prospects of the material. However, demand for CoQ10 in the US market has stabilized in the last few weeks which translated into stagnancy in pricing after climbing for several months. The price of Coq10 in September was assessed at USD 516 per kg CIF Los Angeles.
In China, the CoQ10 market started the 3rd quarter robustly as downstream demand from both domestic as well as overseas markets kept upward pressure on the prices. However, as the quarter reached halfway point, demand for CoQ10 stagnated which also reflected in stable prices for August. The increasing cost of raw materials continues to play a key factor in price determination. Furthermore, the dip in demand exacerbated towards the end of September as China inched closer to its Autumn break. Prices declined from 554 per kg in August to 540 per kg in late September FOB Qingdao. In India, prices also backtracked as demand deteriorated for the material which was epitomized by ample spot availability of CoQ10
The continued rise in freight charges commanded a price trend for CoQ10 for European nations mirroring the market dynamics of previous quarters. In China, prices stabilized and dipped for the material however exacerbated shipping and freight charges along with long waiting and turnaround time meant prices in Europe remained northwards. Demand dynamics of CoQ10 were termed as stable by several market participants, they also remarked that demand may dip further in the coming weeks given the Autumn holiday season is around the corner.
