For the Quarter Ending March 2022
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.
For the Quarter Ending December 2021
In the North American region, the prices of Vitamin B2 witnessed a slight downtrend during the 4th quarter of 2021. Vitamin B2 FOB prices for New Jersey and Illinois were assessed at USD 61559/MT and USD 71400/MT, respectively, in the week ending of December. In terms of demand, offtakes from the nutraceutical and pharmaceutical industries remained consistent throughout the quarter. The supply chain improved in the last few weeks of November, which showcased an optimistic sign for the market players for the forthcoming period. Truck availability also increased in Q4 providing optimum support for material movement across the US. The prices are expected to decline at the beginning of Q1 2022 due to strengthening supply fundamentals and stagnation in demand.
During the 4th quarter of 2021, the pricing trend of Vitamin B2 showcased an upward trajectory across the Asia Pacific region. In China, the prices of Vitamin B2 rose effectively in the domestic market and escalated from USD 51478/MT to USD 56928/MT FOB Qingdao from October to December. The increased Vitamin B2 offers in the Chinese market was influenced by the elevated prices of raw materials, supply tightness, and the prevailing impact of the dual control on the energy consumption policy. As per Indian traders, the Indian domestic market also observed a sharp rise in the Chinese vitamins import as CFR JNPT prices for Vitamin B2 rose from USD 52943.24/MT to USD 53886.87/MT in quarter 4 of 2021 due to the impact of power rationing and dual control on energy consumption. Skyrocketing raw material prices also provided significant cost support to Vitamin B2 prices in India.
The market sentiments improved in the European market during the 4th quarter of 2021 on the back of the increased demand from the downstream pharmaceutical industries. However, the supply outlook of Vitamin B2 remained disrupted throughout quarter four due to the peaking energy crises across the region. The soaring raw material prices and high transportation costs further supported the price trend of Vitamin B2 across Europe.