For the Quarter Ending June 2022
The North American vitamin B9 market started the second quarter of 2022 with progressive outcomes, which fell in the second half of the quarter. The COVID suspension in China's commercial centers significantly hampered imports and was made worse by the US supply deficit. Because of the US's rising inflation, the problematic political situation in Russia and Ukraine, and the highly unpredictable oil prices, domestic traders and purchasers were concerned about high raw material prices throughout the quarter. Following the dramatic drop in oil prices in May, import, consumer, and production spending increased somewhat. Despite the Asian blockades, it appeared that China's major ports were receiving maritime cargo in June. Nevertheless, offtakes from the nutraceutical and pharmaceutical industries remained strong on the demand front.
The pricing trend for vitamin B9 in the Asia Pacific region during Q2 of 2022 revealed conflicting feelings as prices began to fall in the second half of the quarter due to the covid outbreak in the major provinces of China. Due to the opening of its factories and ports, China's domestic market saw a significant increase in the production of nutraceuticals during the first half of the quarter. The country's nutraceutical markets were affected in several ways by a spike in COVID-19 cases during the last week of April; thus, the Chinese authorities put important production facilities on lockdown. It became more challenging to convey the product to other markets due to the country's absurd Zero tolerance policy, which caused several cargo ships to become stuck at ports. In order to get rid of stocks before they deteriorated due to the high COVID tariffs, several firms were prepared to offer the items at a discount toward the end of the quarter. Throughout the quarter, the end-user industries' need for offtakes remained constant.
The Vitamin B9 market in the European region remained favorable throughout the second quarter of 2022, despite a little drop in pricing that began at the end of June. The conflict between Russia and Ukraine raised shipping costs and slowed commodities' flow into Europe, making it harder for exporting nations to conduct business. Throughout the entire quarter, demand from nutraceutical and pharmaceutical businesses remained constant. However, the suppliers had enough inventory to meet all domestic demand.
For the Quarter Ending March 2022
The prices of Vitamin B9 remained strong and increased consistently throughout the first quarter of 2022 in the North American region. During H2, the increased demand for Vitamin B9 by consumers from the downstream pharmaceutical and nutraceutical industries coupled with price fluctuation of feed further influenced the price trend of the product. Increased offtakes in the domestic market rose the values of Vitamin B9 prominently in the mid of the quarter. Amid the prolonged supply disruptions and stabilised demand, the price settled at USD57810 per tonne on FOB basis in the USA by March 2022 in North America.
Throughout the first quarter of 2022, the values of vitamin B9 increased in the Asian region. In the Chinese domestic market, Vitamin B9 prices increased prominently during the first half of the quarter due to the closure of major pharmaceutical and nutraceutical manufacturing units caused by China's zero covid policy. In the latter half of Q1, the values remained firm in the Chinese market due to the uncertain supply of raw materials amid the disrupted supply chains. The prices of Vitamin B9 were accessed at USD 52910 per tonne on FOB basis in Qingdao, China, at the end of Q1 2022. However, in the Indian market, the prices remained stagnant during Q1 due to sluggish demand in the downstream pharma sector.
The values of Vitamin B9 remained firm and increased continuously in the European market during first quarter of 2022. During 1st half of Q1, the values increased significantly due to increased production costs in manufacturing Chinese industries. Continuously growing freight rates also influenced the prices of vitamin B9 in the European market. In March, amid the supply chain disruptions caused by the crisis in the East- European, the raw material supply was uncertain to the exporting Asian country, which gave a further boost to the values towards the end of the quarter. The FOB prices of Vitamin B9 in Germany were estimated at USD44850 per MT during the first month of Q1 2022.
For the Quarter Ending December 2021
During the 4th quarter of 2021, the market of Vitamin B9 witnessed mixed sentiments across the North American region. The FOB New Jersey discussions for Vitamin B9 were settled at USD 51539 per MT in the week ending of December. The US domestic market sentiments remained stable in the month of November with comparatively less volatility in Vitamin B9 prices. The improved supply chain has been a key factor behind the price stability along with stagnancy in demand growth in Q4 2021. Several market players were seen taking a circumspect approach in their volume intakes, wary of market dynamics in the end week of November. The prices of Vitamin B9 are anticipated to remain rangebound in the first quarter of 2022.
The pricing trend of Vitamin B9 showcased an upward trajectory during the fourth quarter of 2021 in the Asia Pacific region. In China, the prices of Vitamin B9 witnessed a hike of 3.7% and escalated from USD 46142/MT to USD 47871/MT FOB Qingdao from October to December. The closure of 60 coal mines in the Shanxi province in October due to heavy rainfall curtailed the coal supplies amidst the ongoing power crunch ahead of the peak season, resulting in the increased prices of raw materials. The price trend improved in the second week of November due to the increased corn offers in the Chinese domestic market as the cold weather dropped the quantity of harvested corn output. The demand outlook exceeded due to a supply glut in the week ending of December after leading manufacturers NHU and ZMC declared force closure on government guidelines in order to contain the spread of COVID. In the Indian domestic market, Vitamin B9 prices witnessed a significant hike and assembled at USD 33771.65 per MT CFR JNPT during December. This price hike was supported by the disrupted trade activities due to the disturbance in the Chinese market, which compelled the traders to procure cargoes at increased prices.
The domestic market sentiments improved in Q4 2021 across the European region on the back of the increased demand from the feed-grade industries. In terms of supply, the outlook remained disrupted throughout the quarter due to peaking energy crises, soaring raw material prices, and high shipping costs. The demand for Vitamin B9 from the downstream pharmaceutical and nutraceutical industries remained strong across the country in quarter 4.