For the Quarter Ending December 2022
After the FOB New Jersey prices of Vitamin B2 dropped from $56600/MT to $54070/MT from October to December, the fourth quarter of 2022 continued to demonstrate the declining sentiments due to the continuing turbulence in the US domestic market. Due to the Golden Week vacations interrupting imports from China during the first week of October, a number of domestic retailers had to raise their price quotations in response to the enduring demand. The tiebreakers, which included China's Covid lockdowns, Russia's conflict in Ukraine, rising inflation in the US, and harsh weather conditions, continued to put fragile supply chains in danger throughout most of the quarter. Strong currency, sluggish end-user demand, and unexpected supply shocks all made it difficult for factories to operate on the global market. The U.S. supply chain gradually became better in the second half of 2022 as the country finally started to recover and the port of New Jersey on the east coast significantly reduced ship backlogs. In November, prices began to decline throughout all US supply chains, reducing inflationary pressures. As a result of weaker shipping demand spurred on by slower consumer spending and a decline in manufacturing activity in December, the US supply chains became more flexible.
China's Vitamin B2 domestic market displayed weakening sentiments in the fourth quarter of 2022 as prices dropped from $47540/mt to $45180/mt from October to December. Due to the Golden Week closure of industrial facilities during the first week of October, China's manufacturing sector contracted at a low rate this month, along with the lowest export orders. The market's chances of catching up to the modest increase seen in some industries during the first half of Q4 were decreased by the fact that Chinese traders returning from the Golden Week holiday also had to deal with a variety of contradicting signals. In China, the Dual Control on Energy Consumption increased prices for a number of products in the second half of Q4 2022, including Vitamin B2. The domestic manufacturers and suppliers met the total demand during the quarter with an acceptable supply of inventories on hand. Following the government's decision to relax its zero-covid regulations in response to widespread protest and ubiquitous unrest in the country, which put the country once again in choppy waters, cases of Covid-19 started to appear in the key manufacturing hubs of China, which shocked the market yet again.
The quarter 4th of 2022 saw a stagnant trend in the European Vitamin B2 market, with CFR Hamburg values assembling at $56420 per MT in December. Industrial production in Germany increased little in October amidst rising energy prices and delayed supply-chain problems. However, the COVID-19 issues, the situation in Russia, and the state of affairs in Ukraine all continued to have a detrimental effect on output. Demand-wise, offtakes in the end-user industries continued to be favorable, but the pharmaceutical and nutraceutical industries were still being negatively impacted by the rising cost of raw materials and energy. Even while better trade flows resumed in Germany and the larger eurozone in the second half of Q4 2022 as a result of some breathing room, this did not necessarily indicate that market fundamentals have balanced.
For the Quarter Ending September 2022
With prices assembled at $57500 per MT in July, the American market for Vitamin B2 started the third quarter of 2022 on a promising note. However, these values later decreased in September and were resolved at $54700 per MT. Nutraceutical manufacturers were compelled to lower their prices due to the periodic lockdowns in China, where most nutraceutical products are imported. As a result, the second half of this quarter saw an effective decline in downstream demand in the US. The number of industrial facilities in China that were shut down for maintenance in the final week of July dramatically reduced imports to the US. This significantly impacted the downward pricing trend along with the declining demand in the final weeks of the third quarter.
The third quarter of 2022 saw a decline in the pricing trend for Vitamin B2 in the Asia Pacific market. This decline in China results from low raw material costs, muted consumer spending, and sluggish end-user sector demand. Large suppliers restricted their orders during the first half to immediate usage, and in July, FOB Shanghai prices reached $53500 per MT. Both the poor offtakes and the weak downstream demand were to blame for this. However, after the markets reopened following the closure, the plants that manufacture Vitamin B2 conducted maintenance, reducing the amount of the vitamin that was accessible to both domestic and foreign suppliers. Later, the local market's downstream demand decreased, with prices eventually stabilizing at $46370 per MT Ex-Shanghai in September.
The European market for Vitamin B2 displayed a downward trend throughout the third quarter of 2022, with CFR Hamburg values settling at $57410/MT in July and then decreasing even further to $48780/MT in September. Germany's logistical problems this quarter compounded the country's economic decline as transportation bottlenecks persisted. The continued lockdowns in Chinese ports and the instability in Russia and Ukraine worsened the situation in Europe. Domestic merchants were compelled to cut their quotations in the second half of the quarter due to the weak end-user demand for the pharmaceutical and nutraceutical industries.
For the Quarter Ending June 2022
The second quarter of 2022 for the vitamin B2 market started out well, but from April to June, the values for FOB New Jersey fell from $58840/mt to $57200/mt. The COVID lockdown in China's commercial hubs, which drastically slowed imports, exacerbated a long-standing supply bottleneck in the nation. Due to high inflation, bothered political situation between Russia and Ukraine, and highly unpredictable nature of oil prices, domestic merchants and purchasers were concerned about high raw material prices during the entire quarter. On the back of the abrupt changes in oil prices in May, import, consumer, and production spending all gradually increased. Ocean cargo from China appeared to be passing through the nation's main ports without any issues in June, despite the Asian blockades. But throughout the quarter, demand from the downstream sectors, including nutraceutical and pharmaceutical remained steady.
In the Asia Pacific region, the market trend for vitamin B2 showed a declination during the second quarter of 2022. Between April and June, FOB Qingdao prices fell from $56050/mt to $52250/mt in the domestic Chinese market. China's production of vitamin B2 surged during quarter two of 2022's H1 due to the opening of its factories and ports. Following a spike in COVID-19 instances during the final week of April, China's authorities placed significant production facilities on lockdown, which had a variety of effects on the nation's nutraceutical markets. Offtakes from the end-user industries remained consistent throughout the quarter in terms of demand. Due to the Zero-COVID policy of the country, several cargo ships were left stranded at ports, which significantly exacerbated the export of the product in offshore markets. Due to the high COVID customs, several factories were prepared to offer the product at a discount toward the end of the quarter in order to get rid of inventories before it deteriorated. In India, Ex-Mumbai prices were valued at INR 3575500 per MT on the domestic market during June.
The domestic market trend for Calcium Powder in the European region remained on the positive side throughout the second quarter of 2022, despite price decreases that began at the end of June. The Russia-Ukraine conflict drove up freight costs and slowed the flow of commodities into Europe, which further exacerbated trade activity from importing nations. Throughout the entire quarter, demand from end-user industries, including the pharmaceutical and nutraceutical sectors, remained consistent. However, the suppliers had enough inventory to meet all domestic demand.
After the FOB negotiations for New Jersey and Illinois were fixed at USD63655/mt and USD73445/mt in March 2022, the Vitamin B2 market in North America had an upswing in the price trend in Q1 of 2022. On the demand side, the healthcare industry witnessed significant offtakes throughout the quarter. In terms of supply, there were sufficient stockpiles to meet overall demand, as dealers loaded their inventories in anticipation of market shutdown due to the Asian festive season. Throughout the first quarter, the US nutraceutical market was in limbo due to protracted port congestion and disrupted supply chain from China owing to the CNY holidays. The high degree of Vitamin B2 consumption in the end-user pharma companies, on the other hand, provided a robust foundation.
The prices of Vitamin B2 witnessed a drastic improvement in the Asia Pacific region during the 1st quarter of 2022. In the Chinese market, the FOB values of Vitamin B2 shot up from USD58100/mt to USD60560/mt from January to March 2022. After the Chinese authorities largely enacted the zero-tolerance covid policy in late December 2021 to curb the Omicron outbreak, the price chart of Vitamin B2 was largely impacted because of the sudden closure of several ports and factories. The forced closure of the major feed grade manufacturers including NHU and ZMC in Zhejiang province negatively affected the nutraceutical markets across China. On the demand front, the consumption of the product was observed strongly in the nutraceutical and pharmaceutical industries. Following the start of port movement and market activity in late H2 2022 in China, output was expanded to meet overall domestic demand. Vitamin B2 prices in India were assessed at USD61125.3/mt for Ex-Mumbai and USD53197.6/mt for CFR JNPT in March 2022.
Following the consistency in downstream offtakes, the Vitamin B2 market in Europe showcased positive sentiments during the first quarter of 2022. The market sentiments were highly influenced by the increased raw material costs and a lengthy supply chain interruption from Asian markets. Domestic European manufacturers were forced to trade Vitamin B2 at slightly increased prices due to a paucity of feedstock supplies and high input costs because of the peaking energy crisis. Elevated manufacturing costs due to high crude and gas prices during the Russia-Ukraine military conflict in the second half of Q1 further supported the Vitamin B2 market prices in Europe. The FOB prices for Vitamin B2 were culminated at USD35200 per MT in January 2022.