For the Quarter Ending June 2025
North America
• The Vitamin B4 Price Index in the USA fell to USD 660/MT in April 2025, reflecting a weak demand outlook as importers held surplus inventories from Q1 frontloading. Spot price weakness was driven by cautious downstream purchasing and market absorption of tariff costs.
• In April, product demand outlook remained bearish as downstream buyers delayed purchases amid high inventory levels and uncertainty over tariff duration. This caused a drop in market activity and pressured suppliers to offer discounts.
• Despite a 145% tariff on Chinese imports, April saw ample product availability due to pre-emptive shipping, with many U.S. buyers deferring further procurement. This created downward momentum in the price index during the month.
• May 2025 witnessed a rebound in the Vitamin B4 Price Index to USD 680/MT, as the U.S. government granted a 90-day tariff waiver. This spurred a surge in import bookings, pushing logistics networks to full capacity.
• A dramatic 300% spike in freight bookings in May, combined with Peak Season Surcharges, caused a jump in landed costs. This contributed to a short-term rise in the product production cost trend and prompted buyers to secure future supplies early.
• Increased downstream consumption across dietary supplements and clinical nutrition drove up the product demand outlook in May. Simultaneously, anticipation of a general rate increase added urgency to procurement timelines.
• By June 2025, the Price Index jumped sharply to USD 760/MT, with sustained inflationary pressure and frontloaded Q3 buying causing significant tightness in port and warehouse logistics.
• U.S. importers aggressively advanced their purchasing schedules in June due to fears of tariff reinstatement and rising container freight rates, which resulted in reduced flexibility and price escalation.
• Strong offtake from nutraceuticals, fermentation, and animal feed sectors continued in June, but the price surge was largely driven by strategic inventory buildup and logistics-driven cost push—impacting both the product price forecast and current spot prices.
• In July 2025, Vitamin B4 prices are likely to increase moderately, though initial frontloading slowed slightly. Persistent congestion at U.S. ports and equipment delays suggest continued supply-side tightness. The Vitamin B4 spot price forecast points to firm prices through late July unless logistical bottlenecks ease.
APAC
• The Vitamin B4 Price Index in China fell by 4.35% in April 2025, with the product spot price touching USD 550/MT due to inventory overhang from March's frontloaded purchases amid tariff uncertainty.
• April’s weak product demand outlook and sluggish factory activity (PMI at 49.0) reflected manufacturing contraction and logistical congestion at ports.
• Despite exemption from new U.S. tariffs, buyers had already bulk-purchased in March, leading to muted April sales and lower product price forecast.
• In May, the Price Index rebounded by 1.82% to USD 560/MT, driven by rising international demand and strained container availability during the 90-day U.S.-China tariff reprieve.
• High freight rates and pre-June GRIs (General Rate Increases) created shipping pressure, giving Vitamin B4 exporters room to raise prices.
• Export-led demand surged in May, particularly from U.S. buyers, while downstream users in food and nutraceuticals maintained steady procurement.
• June saw continued upward momentum as the Price Index rose 1.79% to USD 570/MT, with global customers racing to ship before the August tariff window closes.
• Increased export commitments triggered higher production throughput, impacting the product production cost trend as factories scaled up cautiously.
• June’s product demand outlook remained strong from sectors like pharmaceuticals and animal health, aiding suppliers in executing price hikes.
• Product price forecast for July suggests a possible mild correction, as frontloaded orders ease and global buyers pause amid pricing uncertainty.
Europe
• In April 2025, the Vitamin B4 Price Index in Germany fell sharply by 5.88%, with spot prices at USD 640/MT, driven by oversupply from diverted US-bound cargo and early procurement by buyers ahead of the Labour Day holidays.
• The Vitamin B4 production cost trend remained stable, but large inventory buildup, consistent Asian imports, and favorable freight availability ensured landed costs stayed competitive, limiting price recovery prospects.
• Distribution inefficiencies due to port congestion in Hamburg and Rotterdam, combined with cautious offtake from nutraceutical and healthcare buyers, kept the Vitamin B4 demand outlook subdued.
• In May 2025, the Price Index rose slightly by 0.78% to USD 645/MT, supported by severe vessel delays, reduced Rhine navigability, and a rise in seasonal demand across the pharma and wellness sectors.
• Strategic supply constraints due to rerouted vessels and shrinking availability on Asia-Europe routes bolstered Vitamin B4 spot prices, while anticipation of a General Rate Increase (GRI) in June led to stronger forward bookings.
• A rebound in regional consumption, paired with capacity restrictions from shipping lines, created a competitive buying environment and improved Vitamin B4 demand outlook.
• In June 2025, the Price Index surged by 5.43% to USD 680/MT, as extreme congestion at ports and tightening import supply chains triggered early bulk procurement and pushed Vitamin B4 spot prices higher.
• Germany’s 2% inflation rate offered macro stability, but freight rerouting, delayed inland shipments, and tighter delivery windows spurred buyers to accept increased costs, influencing the Vitamin B4 production cost trend.
• Demand remained firm, but most downstream players accelerated restocking to hedge against expected disruptions in Q3, which supported the strong upward Vitamin B4 price forecast.
• For July 2025, the Vitamin B4 Price Index is expected to increase due to worsening Rhine barge logistics, persistent port congestion, and increased importer activity, sustaining momentum in Vitamin B4 spot prices and demand.
For the Quarter Ending March 2025
North America
In Q1 2025, Vitamin B4 prices in the USA exhibited significant volatility. January saw a notable price surge driven by anticipatory stockpiling before the imposition of a 10% tariff on Chinese goods, compounded by the Chinese Lunar New Year and rising energy costs. These factors strained supply chains and led to price hikes.
February, however, marked a price decline as supply increased due to higher Chinese manufacturing output and a drop in shipping costs. Despite these favorable supply conditions, weak demand, economic uncertainty, and concerns over future tariffs led to subdued buying activity. By March, prices rebounded as demand rose due to a reduction in inventory levels and increased caution around trade policy volatility. The Trump administration’s new tariffs, effective in March, prompted businesses to accelerate procurement, fearing further cost increases. Additionally, signs of easing inflation bolstered market sentiment, contributing to the price recovery.
The quarter was marked by significant fluctuations, driven by trade policy uncertainties, supply chain dynamics, and shifting economic conditions. As of the end of Q1, Vitamin B4 was priced at USD 735 per metric ton.
Asia Pacific
In Q1 2025, Vitamin B4 prices in China experienced significant fluctuations driven by a mix of supply-demand dynamics and external trade factors. In January, prices rose sharply due to increased demand from industries like nutraceuticals and healthcare, coupled with pre-Lunar New Year production dips and anticipation of U.S. tariffs. Manufacturers and distributors secured advance orders to mitigate potential shortages, further driving prices up. February saw a price decline, as production rebounded post-holiday and weakened export competitiveness led to higher domestic inventories. At the same time, weak demand from both local and foreign markets, particularly in pharmaceuticals and dietary supplements, contributed to the price drop. By March, prices rebounded, as supply struggled to keep pace with rising demand. Low inventory levels, combined with a boost in foreign and domestic buying activity, tightened the market and led to a modest price increase. This was further influenced by fiscal stimulus and restocking ahead of maintenance, making for a volatile but upward trend toward the end of the quarter. By the end of Q1, Vitamin B4 was priced at USD 575 per metric ton in China.
Europe
In Q1 2025, Vitamin B4 prices in Germany exhibited a highly volatile trend. January saw a significant price increase, fueled by improved economic sentiment, strong restocking activity, and early procurement ahead of Lunar New Year-related shipping delays through the Red Sea. Demand from the healthcare and nutraceutical sectors also strengthened amid better business confidence and favorable monetary conditions. However, February marked a sharp price correction as early stockpiling led to ample inventories. The Euro's appreciation and a steep decline in ocean freight rates enabled cheaper imports, while political and economic uncertainty during the election period dampened downstream demand. Suppliers reduced prices to remain competitive. In March, the market rebounded strongly, with prices surging due to supply tightness and intensifying restocking. Disruptions in Northern European logistics corridors triggered delivery delays, prompting aggressive buying from pharmaceutical and nutritional supplement manufacturers. The resulting supply-demand imbalance enabled suppliers to raise prices significantly. By the end of Q1, Vitamin B4 was priced at USD 680 per metric ton.
For the Quarter Ending December 2024
North America
In Q4 2024, Vitamin B4 prices in the USA displayed significant fluctuations driven by a combination of demand, supply chain disruptions, and economic factors. In October, prices surged due to increased demand from key sectors, a boost in consumer confidence following Federal Reserve rate cuts, and severe supply chain disruptions caused by labor strikes at East and Gulf Coast ports.
November saw continued price increases as demand remained high, fueled by a strong consumer outlook, seasonal preparation, and concerns about labor strikes in January, which led to proactive purchasing. However, in December, Vitamin B4 prices dropped due to a decline in consumer confidence, reduced demand during the holiday season, and rising inflation. Inventory buildup in anticipation of the Chinese Lunar New Year and potential labor strikes ensured a balanced supply, pushing prices down. Additionally, uncertainty surrounding tariffs further dampened market activity, with many buyers opting to wait, contributing to the price decline.
Overall, Q4 witnessed volatility in Vitamin B4 prices, marked by rising demand followed by market caution.
Asia Pacific
In the fourth quarter of 2024, Vitamin B4 prices in China experienced fluctuations, driven by a range of economic and market conditions. In October, prices saw a slight rise, buoyed by China's manufacturing sector's recovery and government stimulus measures. This expansion sparked increased domestic and export demand, further supported by a weaker yuan, which made exports more competitive. November saw a notable price increase, driven by robust factory activity, particularly in export orders, and rising input costs, which manufacturers passed onto consumers. The yuan's depreciation continued to encourage international demand. However, in December, prices fell due to subdued consumer demand and broader economic slowdown. A decrease in both domestic and international orders, especially from major markets like the US and Germany, led to an oversupply of Vitamin B4. In response, suppliers reduced prices to clear excess inventory, resulting in the decline. This Q4 trend reflects a balance between economic recovery-driven price hikes and a year-end dip due to weaker demand.
Europe
In Q4 2024, Vitamin B4 prices in Germany displayed a mixed trend, influenced by a combination of demand and supply-side factors. October saw a slight increase in prices due to improved business morale, boosted by optimism about economic recovery and the European Central Bank’s interest rate cut. Suppliers worked to build inventories ahead of expected Christmas slowdowns, while supply chain disruptions, including port congestion and longer transit times, added upward pressure. November brought further price increases driven by heightened demand from the nutraceutical and healthcare sectors, a proactive inventory buildup for the holiday season, and higher freight rates following General Rate Increases (GRIs) in Asia-Europe shipping. However, the depreciation of the euro added costs for German buyers. In December, prices dropped due to weak demand from key sectors, cautious buying amid economic instability, and ample inventory levels. Additionally, winter weather slowed both consumer spending and logistics, leading to deferred purchasing decisions and a reduction in overall market activity, which contributed to the price decline.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American Vitamin B4 market displayed a turbulent pricing trend influenced by various factors impacting multiple sectors. The United States, in particular, experienced the most pronounced price fluctuations, resulting in a volatile pricing landscape marked by significant changes throughout the quarter.
Initially, prices fell due to several factors exerting downward pressure on the market. A major influence was the inflation rate, which had soared above 9% but began to decline substantially as the quarter progressed. This reduction in inflation led to lower overall operational costs for businesses, allowing them to decrease Vitamin B4 prices and pass on the savings to consumers. However, as September approached, a shift occurred, and prices began to rise sharply. This increase was driven by a mix of economic and logistical factors. Consumer confidence improved, bolstered by more positive perceptions of the economy and easing inflation, despite ongoing concerns about the labor market. This renewed optimism spurred greater demand for Vitamin B4, placing upward pressure on prices.
In light of these shifting dynamics, market participants proactively worked to enhance their inventories, anticipating a future surge in demand and seeking to mitigate potential supply chain disruptions.
APAC
Throughout Q3 2024, Vitamin B4 pricing in the APAC region displayed a varied trajectory, beginning with an initial decline that transitioned into a recovery by the end of September. During July and August, prices fell primarily due to weak market sentiments. A key factor in this downturn was the decline in new business and orders, driven by changing consumer preferences and intensified competition among manufacturers. This confluence of factors led to diminished demand, prompting companies to adjust their pricing strategies downward to remain competitive. Additionally, the export market exhibited sluggish growth, reaching its slowest pace since April. This lack of export momentum mirrored weak global demand, further reinforcing the downward trend in Vitamin B4 prices. As a result, manufacturers encountered difficulties in maintaining stable pricing levels amid these challenging conditions. However, as the quarter progressed into late September, the landscape shifted. Prices began to rebound, fueled by a noticeable slowdown in the manufacturing sector that followed a period of strong growth. This change indicated that production levels were struggling to keep pace with the rising demand for Vitamin B4. The growing disparity between supply and demand created potential supply constraints, typically resulting in upward pressure on prices.
Europe
During the third quarter of 2024, the pricing dynamics of Vitamin B4 in the European region displayed a mixed trend shaped by several key factors. Initially, prices experienced a decline, primarily due to weaker-than-expected demand in the German market, particularly within the nutraceutical and healthcare sectors. This subdued demand led market participants to adopt a cautious approach, opting to maintain substantial inventory levels to meet current consumption needs in Germany. However, as September approached, a significant shift occurred, with prices beginning to rise. This increase was driven by strong demand from end-user industries and strategic inventory management by companies preparing for potential disruptions. Favorable macroeconomic conditions also contributed to this upward trend. Additionally, the ongoing conflict in the Red Sea complicated matters by disrupting global maritime traffic, resulting in logistical challenges that constrained the supply of Vitamin B4. These supply limitations added further upward pressure on prices as market dynamics evolved. Moreover, improvements in consumer sentiment, especially in Germany, played a crucial role in revitalizing demand and creating a more optimistic market outlook. Despite the various challenges faced by the industry, companies actively worked to enhance their stockpiles in anticipation of potential shipping delays, thereby supporting the upward trend in prices.
FAQs
1. Why did Vitamin B4 prices fall in April but rise steadily by June 2025?
April’s decline was mainly due to inventory overhang from heavy frontloading in March amid tariff concerns. Buyers across the U.S., China, and Europe delayed new purchases, leading to weaker demand and lower spot prices. However, by May and June, prices rose as tariff waivers, seasonal demand, and logistical bottlenecks triggered renewed procurement and tighter supply chains.
2. How did logistics and trade policy impact Vitamin B4 prices during the quarter?
The temporary 90-day tariff reprieve in the U.S. led to a spike in import bookings and freight congestion, raising costs and pushing prices up in May and June. In China, exporters rushed to meet overseas orders before the tariff deadline. Europe faced vessel delays, Rhine navigability issues, and port congestion, all of which reduced supply flexibility and lifted landed costs.
3. Which sectors supported the demand outlook for Vitamin B4 in Q2?
Demand remained strong in nutraceuticals, dietary supplements, pharmaceuticals, and animal health. These sectors drove steady offtake, especially during May and June, helping prices recover despite earlier weakness. Strategic restocking by downstream players also supported demand in anticipation of Q3 disruptions.
4. What is the outlook for Vitamin B4 prices in July 2025?
Prices are expected to increase moderately across all regions. In the U.S., port congestion and high freight rates could keep supply tight. China may see stable or slightly higher prices depending on global orders. In Europe, worsening inland logistics and active importer restocking suggest continued upward pressure on the Price Index.
Seasonally, Xanthan Gum prices may rise during food processing peaks (e.g., summer and year-end holiday seasons) or when drilling activities intensify. However, prices can stabilize or weaken during periods of low industrial activity or when inventories are high. Price forecasts also respond to macroeconomic confidence and procurement cycles.
4. What causes shifts in Xanthan Gum Production Cost Trends?
Xanthan Gum production costs depend heavily on raw material availability (particularly glucose or corn derivatives), energy prices, and plant utilization rates. In regions like China, stable feedstock and full-capacity operations tend to keep costs consistent, while any volatility in agricultural input costs or utilities can impact the overall trend.
5. What is the current global Xanthan Gum Demand Outlook?
The global demand outlook for Xanthan Gum remains moderately optimistic. Food and beverage sectors show consistent consumption, while industrial and oilfield demand is cyclical and more sensitive to economic recovery and infrastructure spending. Regional disparities in demand trends may affect market sentiment and trade flows.
