For the Quarter Ending March 2023
North America
During the first quarter of 2023, the price trend for Vitamin C remained steady, with CFR prices in Los Angeles settling at $5540 per MT in January and $5620 per MT in March, respectively. Following the market turbulence of the previous quarter, industry players had anticipated that the pharmaceutical and nutraceuticals industries would continue to sail through choppy waters during the first quarter of 2023. Nevertheless, the market dynamics were controlled by constant end-user demand and low to moderate inquiries from downstream suppliers. The first week of January's relaxation of China's zero-covid restriction was beneficial for the first half of the quarter as the supply chain and trade remained robust, resulting in a drop in freight costs. Due to a decrease in local consumer demand and record-high warehouse supplies, domestic retailers reduced production orders by as much as 40% in the second half of the first quarter.
Asia Pacific
In the Asia Pacific region, the trillion-dollar economy, i.e., China, which had suffered greatly over the previous four years, received new life as a result of China's decision to lift strict COVID-19 restrictions in the first week of January. So, China ended up with a slightly favorable first quarter of 2023. The first quarter of 2023 saw little change in the FOB Shanghai pricing trend in the domestic Chinese market, with prices stabilizing at $3210/MT in January and $3280/MT in March. Following a week-long Lunar Holiday, the price of Vitamin C in the domestic market for nutraceuticals and pharmaceuticals experienced a roll-over sentiment for two consecutive weeks in January. The fall in market activity in China during the second half of the quarter can largely be attributed to sufficient inventories. However, the slight price rise was mostly due to the improved demand in both domestic and foreign markets.
Europe
The first quarter saw a rise in orders and shipments from both local and foreign markets, which helped Europe's pharmaceutical and nutraceutical industries get off to a good start. From $3940 per MT in January 2023 to $3975 per MT in March 2023, respectively, Vitamin C prices climbed during the first quarter of 2023. For most of this quarter, participants in the local market noticed profitable arbitrage since the forecast for supply and demand appeared promising. The unexpected reopening of China's covid and the lengthy conflict between Russia and Ukraine lowered inflation pressures, while the European market displayed optimistic indicators. This made room for a swift recovery in activity, further aided by an improvement in end-user demand from producers and suppliers.
For the Quarter Ending December 2022
North America
As a result of the protracted turbulence in the U.S. domestic market, Vitamin C prices continued to fall in the fourth quarter of 2022, with CFR Los Angeles prices decreasing from $6050/MT to $5790/MT from October to December. Due to the Golden Week vacations, which occurred during the first week of October, imports from China were halted, forcing many domestic retailers to raise their price quotes in order to meet the ongoing demand. The tiebreakers—Covid China's lockdowns, Russia's conflict in Ukraine, rising U.S. inflation, and harsh weather—continued to jeopardize brittle supply networks for most of the quarter. The U.S. supply chain gradually improved in the second half of 2022 as the economy recovered and the port of Los Angeles on the west coast significantly reduced ship backlogs. Offtakes in the end-user industries continued to be favorable throughout the quarter in terms of demand. Because of weaker shipping demand spurred on by slower consumer spending and a decline in manufacturing activity in December, the U.S. supply networks became more flexible.
Asia Pacific
As FOB Shanghai discussions decreased from $3320/MT to $2940/MT from October to December of 2022, the domestic Vitamin C market in China showed signs of declining. Due to the suspension of industrial facilities over the Golden Week in the first week of October, China's manufacturing sector experienced its slowest contraction in October and the lowest export orders. The market's chances of catching up to the modest rise seen in several industries during the first half of Q4 were hindered by the fact that Chinese traders returning from the Golden Week holiday had to deal with a variety of contradicting signals. Domestic producers and suppliers were able to meet the whole domestic demand throughout the quarter thanks to ample stockpiles on hand. As a result of widespread protest and general unrest in the country, the government decided to modify its zero-covid legislation, which once again put the country in difficult waters. Covid-19 cases started to appear in China's major manufacturing centers at that time.
Europe
In Europe, with CFR Hamburg values assembling at $3890/MT in December 2022, the Vitamin C market showed a declining trajectory in the fourth quarter of 2022. Offtakes in the end-user industries continued to be favorable from a demand standpoint, but the pharmaceutical and nutraceutical businesses were negatively impacted by the rising costs of energy and raw materials. However, the issues with COVID-19, the circumstances in Russia, and the crisis in Ukraine all continued to have a detrimental effect on output. Due to some breathing room in the second part of Q4 2022, trade flows in Germany and the wider eurozone got strong.
The price of Vitamin C effectively decreased during the third quarter of 2022, with values in the domestic US market falling from $8250/MT to $5860/MT from July to September. Because of the sporadic lockdowns in China, from where the majority of nutraceutical items are imported, the companies that make vitamin C were forced to lower prices. As a result, demand in the US somewhat decreased in the second half. As the world's two largest economies struggled with clogged supply chains and rising oil prices, the Biden administration sought to reduce inflation by lifting some tariffs on imports from China. Due to the closure of production facilities in China, many of which were closed for maintenance throughout H2 of Q3, US imports decreased dramatically. In the latter weeks of the third quarter, this significantly impacted the downward pricing trend in the domestic pharmaceutical and nutraceutical businesses.
The third quarter of 2022 saw a decline price trend for vitamin C in the Asia Pacific market. This price trend has been influenced by various variables, including lowering raw material costs, muted consumer spending, and sluggish end-user industry demand. Only purchases for immediate consumption were observed from major suppliers during the first half of Q3, with FOB Shanghai prices settling at $3640 per MT in July. The weak downstream demand and the below-average offtakes were to blame for this. However, after the markets reopened in the latter week of July, certain facilities that produce vitamins carried out maintenance, which decreased the amount of Vitamin C that was publicly accessible. Later, downstream pharma and Nutra demand in the domestic market became incredibly low, which caused prices to decline and settle at $3441 per MT in September.
German Vitamin C price trend showcased a downward trajectory during the third quarter of 2022, with values for CFR Hamburg estimated at $3700/MT in July and later settled to $3480/MT in September. This quarter's economic slump was made worse by Germany's logistical problems as transportation bottlenecks persisted. The continued lockdowns in Chinese ports and the turmoil in Russia and Ukraine worsened the situation in Europe. Domestic retailers cut their prices in the second half of the quarter due to the weak demand from pharmaceutical and nutraceutical end users.
