For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of Vitamin B1 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 can be 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 Vitamin B1 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 Vitamin B1 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. The final quarter's price for Vitamin B1 (Thiamine) Mononitrate FOB Shanghai in China was reported as USD 19,500/MT, reflecting the upward trend in prices during the quarter.
Europe
In Q1 2024, the pricing dynamics of Vitamin B1 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 Vitamin B1 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 Vitamin B1 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 Vitamin B1 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 Vitamin B1 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 Vitamin B1 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 Vitamin B1 suppliers and buyers alike.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the Vitamin B1 market in North America encountered various challenges, leading to fluctuations in prices and supply. Firstly, the market struggled with constrained inventories, resulting in limited availability of Vitamin B1, mainly due to reduced trading activities with major exporting nations. Secondly, demand for Vitamin B1 remained moderate throughout the quarter, driven by consistent consumption in the nutraceutical and healthcare sectors. Lastly, inflationary pressures and increased transportation costs contributed to an overall price hike.
The strength of the dollar against currencies such as the Chinese yuan heightened import costs, further impacting Vitamin B1 pricing. In the USA, the largest market in North America, Vitamin B1 prices experienced a slight increase in the fourth quarter. Despite concerns regarding inflation and rising prices, consumers displayed confidence in the US economy. The steady demand from end-users, particularly in the nutraceutical and healthcare industries, played a pivotal role in maintaining price stability. Additionally, effective inventory management practices ensured the continued availability of Vitamin B1.
Overall, the Vitamin B1 market in North America faced challenges during the fourth quarter, characterized by limited supply, moderate demand, and inflationary pressures.
APAC
In the APAC region, the fourth quarter of 2023 for Vitamin B1 (Thiamine) witnessed various factors that impacted the market and prices. Firstly, the market experienced stable to escalated conditions, with an increase in new orders and sales. However, the overall demand remained high, driven by inquiries from downstream industries. Additionally, the supply of Vitamin B1 was low to medium, leading to a scarcity of the product in the market. In terms of specific country analysis, China played a significant role in the Vitamin B1 market. The country experienced a surge in demand during the festive season, resulting in a notable price increase. However, the market situation was unstable, with uncertainties in global demand and declining exports. Despite this, China's manufacturing activities showed signs of improvement, with an expansion in output and new business orders. Looking at the price trends for China in the fourth quarter of 2023, there was a 26% increase in prices compared to the previous year's same quarter. Furthermore, there was a 4% price percentage comparison between the first and second half of the quarter. The quarter ended with a price of USD 17500/MT of Vitamin B1 (Thiamine) Mononitrate FOB Shanghai in China. Overall, the Vitamin B1 market in the APAC region during the fourth quarter of 2023 was influenced by factors such as increased demand, limited supply, and fluctuations in global demand and exports.
Europe
Throughout the fourth quarter of 2023, pricing dynamics in the European Vitamin B1 market were shaped by various factors. Initially, a shortage of available stock precipitated price increases. Additionally, elevated energy prices and transportation costs contributed to these upward price movements. Despite these challenges, demand for Vitamin B1 remained steady, supported by easing inflationary pressures and growing consumer confidence. Germany, in particular, witnessed notable impacts on pricing dynamics. The country experienced 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 rise in Vitamin B1 prices. Disruptions in the global supply chain of Vitamin B1 emerged as a primary driver, leading to constrained availability. Market players responded by adjusting prices to maintain profitability. Furthermore, reduced exports from China to the European Union contributed to diminished inventories in the German market, further propelling the upward trajectory of Vitamin B1 prices. Overall, market sentiments remained positive due to sustained demand, limited supply, and sluggish imports in the domestic market.
For the Quarter Ending September 2023
North America
The third quarter of 2023 encountered a substantial drop in the price pattern of Vitamin B1 (thiamine) mononitrate, exhibiting a bleak outlook. The primary drivers of this price fall are the correspondingly low demand and the considerable supply availability that participants have on hand to meet the entire demand. The Federal Reserve remained concerned about the US economy's development throughout the quarter, as it raised the prospect of increased inflationary pressures. According to the report, the US manufacturing sector shrank in July for the ninth consecutive month as companies slashed staff and output in response to a decline in new orders brought on by a general slowdown in demand. The demand for nutraceuticals, especially Vitamin B1 (Thiamine) Mononitrate, entering the United States from abroad declined significantly from the second half of the quarter Q3 due to the adequate supply supplied by domestic suppliers. Furthermore, the rise in inventories suggested a general lack of demand from consumers even as the Federal Reserve kept up its aggressive monetary tightening in an effort to reduce record inflation. States taking part in Soft Landing Summer discovered a lot of encouraging economic indicators later in the second half, suggesting that the US economy is escaping the recession that many had expected because of Fed assistance.
Asia Pacific
The domestic Vitamin B1 market in China exhibited a downward trend in the Asia Pacific region, with values dropping from $14600/mt in July to $13900/mt in September. China's economy, the world's second largest, developed way quickly than anticipated because of rising deflation, a high rate of youth unemployment, and weak international demand. The second half of the year saw this trend continue, and the economy started the third quarter of 2023 on a downward trajectory. The two main factors driving China's price increase for vitamin B1 in the second half of this quarter have been string currency—a stronger Yuan (RMB) relative to the USD—and fluctuating end-user demand (both locally and abroad). For the apparent reasons, the beginning of China's golden week in late September had little to no impact on the country's Vitamin B1 market, compared to other nutraceuticals, as its prices remained reasonably lower. Exporting nutraceuticals, particularly Vitamin B1 (Thiamine) Mononitrate, had an effect on both domestic and international markets over the last few weeks of the quarter due to the strengthening of the Yuan and the falling value of the US dollar.
Europe
In Europe - Throughout the third quarter, the price trend for vitamin B1 (thiamine) mononitrate remained bearish. The primary driver prompting the Vitamin B1 suppliers to drop their quotations over the course of the quarter has been an excess of inventory levels which have met the overall demand. Industry analysts reported that the German industry was still struggling at the beginning of the third quarter. German dietary supplement suppliers reported significant declines in production, new orders and factory prices at the beginning of the third quarter, indicating that the situation had intensified. Another factor contributing to the decline in sales was the steady, sharp fall in new orders, which was the largest in more than three years. Customers waited and reduced their inventories over the period, indicating weak demand for all types of commodities, including nutraceuticals. Economic uncertainty, the geopolitical situation and tighter financial conditions all contributed to the decline in demand.
For the Quarter Ending June 2023
North America
After a long period of anarchy, economic conditions in the US seemed to have improved in the second quarter of 2023. In North America, the domestic Vitamin B1 (thiamine) mononitrate market experienced a stagnation in its price chart during the second quarter of 2023. Demand for vitamin B1 (D-Calpan) from end-user pharmaceutical and nutraceutical industries in the US weakened somewhat in the second half of Q2. Another factor supporting price reductions in the country was the abundant supply of Vitamin B1 (Thiamine) Mononitrate from domestic suppliers, which led them to lower their price offers. Inflation in the country has fallen in line with energy prices. However, analysts believe that the fall in inflation is temporary due to the easing of supply chain pressures and have described it as a blip. Despite mixed sentiment on the price of vitamins and other dietary supplements, the country's nutraceuticals market has also shown a mixed pattern of market activity. Moreover, the US economy remains robust, according to the statistics, as it continues to move towards steady and stable growth.
Asia Pacific
Across the Asia-Pacific region, Vitamin B1 (Thiamine) Mononitrate market showed a favorable price movement in Q2 2023. Prices initially rose from $1,4700 per tonne in April to $1,5000 per tonne in June'23 on the back of the improved demand from the downstream pharmaceutical and nutraceutical sectors, both locally and internationally. Chinese producers of vitamin B1 (thiamine) mononitrate were forced to sell the product at slighter higher margins due to increased consumer inquiries. China's manufacturing activity contracted for the third consecutive month in June, albeit at a slower pace, according to statistics. The figures came as pressure mounted on the authorities to come up with better measures to support an economy that has flattened out after a strong rebound in the first quarter. The June PMI also revealed a number of imbalances. These included a continued decline in regional and external demand, an accelerated decline in small business activity, and increasing pressure on the pharmaceuticals and dietary supplements sector.
Europe
In Europe, the vitamin B1 (thiamine) mononitrate market was flat in the second quarter of 2023, with prices rising at a slower pace. Consistent demand from downstream industries, combined with moderate supplier inventories, was one of the main reasons for this price stagnation during the quarter in the German domestic market. By April, European power generation gas costs were at their weakest since the start of the crisis. On the other hand, the market environment was strongly influenced by an unexpected rise in the German unemployment rate in June. German inflation rose again by more than 6% in June, but the country's Vitamin B1(thiamine) mononitrate industry has not yet been affected. As in the rest of the world, market participants are treading water and remain skeptical about the country's economic situation. In addition, there were also some short-term challenges from lower demand in Europe (a market for 15% of US exports) and a higher dollar due to increased global risk.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, prices for Vitamin B1 continued to decline as a result of the long-drawn-out turmoil in the U.S. domestic market, with CFR Los Angeles from January to March. Due to a halt in imports from China during the first week of January due to the Lunar New Year, several domestic retailers had to raise their price quotes to keep up with the ongoing demand. The tiebreakers, which included the crisis in Ukraine, rising U.S. inflation, and extreme weather, persisted in putting fragile supply chains in peril for the majority of the quarter. The U.S. supply chain gradually improved in the second half of 2023 as the economy recovered and the port of Los Angeles on the west coast significantly reduced ship backlogs. All U.S. supply chains experienced a price decline beginning in March, reducing inflationary pressures. The U.S. supply chains became adaptable because of weaker shipping demand brought on by slower consumer spending and a decline in manufacturing activity in March.
Asia Pacific
During Q1 of 2023, the domestic Vitamin B1 market in China displayed indications of fluctuation in pricing as FOB Shanghai discussed from $14600/M.T. to $14600/M.T. from January to March. Due to the shutdown of industrial facilities for the Lunar New Year during the first week of January, China's manufacturing sector experienced its slowest contraction in January and the lowest export orders ever. The market's possibilities of catching up to the significant gain recorded in some industries during the first half of Q1 grew due to the range of contradicting signals that Chinese merchants returning from the holiday had to contend with. The final month of the quarter saw local producers and suppliers fully meet all domestic demand thanks to ample stockpiles on hand.
Europe
The European Vitamin B1 market exhibited a steady trend in the first quarter of 2023, with CFR Hamburg. Despite rising energy costs and bottlenecks in the supply chain, Germany's industrial production barely increased in January. The issues with the situations in Russia and Ukraine, however, all continued to have a detrimental effect on output. Demand-wise, offtakes in the end-user industries continued to be favorable, while the pharmaceutical and nutraceutical industries continued to struggle due to the rising cost of raw materials and energy. Due to some breathing room, trade flows in Germany and the wider eurozone were stronger in the second part of Q1 2023, but this did not mean that market fundamentals had become balanced.
