Carnitine Prices Show Upward Trend in US Amid Restricted Supply in September 2023

Carnitine prices rose in September due to increased demand from end-users and low US market inventories. Furthermore, factors such as increased freight expenses and persistent inflation contributed to price fluctuations in Carnitine. Carnitine is an amino acid that aids the body's conversion of fat into energy. It is widely used as a health supplement and in biomedicine to treat various diseases, explaining the steady demand for Carnitine from the consumer side and keeping costs high.

China is one of the largest exporters to the United States. As Golden Week approaches, manufacturers' production capacities in China are ramping up to meet orders in time for the next major sales events, such as Black Friday or Cyber Monday, and to ship them from China before the holidays. This increases demand surge starting in mid-September, resulting in capacity overflow at customs and freight forwarders in the weeks leading up to Golden Week. As a result, sea and air freight prices began to increase, leading to higher Carnitine prices in the USA.

The United States is the most prominent biomedicine market in the world. Growing awareness among consumers regarding the benefits attributed to Carnitine supplements in North America has helped keep the market dynamics positive. Furthermore, US inflation expectations plummeted to their lowest level in over two years in early September as consumers became more optimistic about the economic outlook. The Federal Reserve kept the key interest rate in the United States steady in September, waiting to see if its record-rate rise over the previous 18 months had controlled inflation. The central bank maintained its main policy rate of 5.25% to 5.50%, citing improved economic conditions and explaining the positive consumer sentiments in the USA, resulting in a rise in Carnitine prices. Despite this, inflation in the United States remains higher, owing to a jump in fuel prices, which continues to raise transportation costs and expenses, resulting in increased Carnitine prices.

According to ChemAnalyst analysis, Carnitine costs are projected to climb in the next few months due to limited availability and a slowdown in Chinese production activities. During the Chinese Golden Week holiday, most businesses and industries will be closed, resulting in a decreased supply of Carnitine in the market. Furthermore, transportation services would be slow, and those that do exist would be highly expensive. It is almost inevitable that both ocean and air freight prices will rise, leading to an increase in Carnitine prices in the United States. Furthermore, inflation in the United States is expected to improve in the coming months, which will assist in the expansion of the Carnitine industry.