For the Quarter Ending December 2024
North America
During Q4 2024, the Nicotinamide (Vitamin B3) market in North America demonstrated a mixed trend, with initial firmness in October followed by persistent weakness through December. The quarter began with robust momentum as pharmaceutical and nutrition supplement manufacturers engaged in active procurement by the US importers amid supply concerns and rising production costs in China. However, this bullish sentiment proved short-lived as market fundamentals shifted significantly.
The market dynamics transformed notably post-October, influenced by increasing availability of competitively priced material from Asian sources. US buyers adopted a cautious stance, reducing procurement volumes as supply chains normalized and inventories remained comfortable. The steady demand from nutrition and animal feed sectors proved insufficient to prevent the downward trend, while domestic distributors initiated strategic destocking to manage year-end positions.
December witnessed intensified bearish sentiment as suppliers accelerated destocking initiatives amid growing competition ahead of Christmas holidays. The animal feed sector's seasonal slowdown further weakened demand fundamentals, while pharmaceutical buyers maintained minimal inventory positions. End-users leveraged the softening market conditions to negotiate better terms, adopting a wait-and-watch approach as bearish sentiment deepened. The quarter concluded with sustained downward pressure as strategic destocking and cautious buying patterns dominated market dynamics.
APAC
In Q4 2024, Nicotinamide (Vitamin B3) prices in APAC markets experienced significant volatility, beginning with sharp appreciation in October before transitioning to a sustained downward trend. The initial price surge was driven by production cost increases and temporary supply tightness following China's Golden Week. However, post-holiday operations resumed with rapidly changing market sentiment as improved production rates and softening demand fundamentals emerged.
Chinese manufacturers, who initially maintained firm positions citing production costs and environmental compliance requirements, gradually adjusted their stance as market conditions shifted. The region witnessed increasing competition among producers, with several facilities ramping up production rates to maintain market share. Trading activities slowed considerably as both domestic and international buyers adopted increasingly conservative purchasing strategies.
December brought systematic destocking initiatives as manufacturers focused on managing year-end inventories amid weakening market conditions. Several facilities reported increasing inventory pressure despite attempts to optimize production rates. The combination of improved supply availability, softening demand patterns, and strategic inventory management by producers accelerated the downward price trajectory. Export markets remained particularly challenging, with competitive pressures intensifying as suppliers sought to maintain market share.
Europe
In Q4 2024, Nicotinamide prices in Germany reflected the global market volatility, starting with October's firmness before aligning with the broader downward trend. The quarter began with strong market fundamentals as buyers responded to rising Asian offers and supply uncertainties. However, European manufacturers soon faced increasing pressure to adjust prices as market conditions deteriorated.
The bearish sentiment intensified through November despite stable pharmaceutical sector demand. Buyers leveraged the shifting market dynamics to optimize procurement costs, while merchants faced growing margin pressure. The market witnessed increased competition among distributors, with several players actively reducing stock positions to align with weakening prices.
December's market dynamics were characterized by accelerated price depreciation as European distributors competed to reduce inventories. The combination of strategic destocking, ample supply availability, and seasonal demand slowdown maintained strong downward pressure. While consumption patterns remained relatively steady across pharmaceutical applications, the market's bearish orientation strengthened through quarter-end. The sustained price decline reflected both global market fundamentals and regional demand softness, creating an increasingly challenging environment for suppliers maintaining higher price positions.