The prices of Carnitine showed a decline globally during December, continuing the trend from the previous month. The primary factor behind this price drop was weak demand from end-sectors, coupled with an adequate supply in the market. As the year drew to a close, market participants focused on clearing out old inventories, offering Carnitine at reduced prices to make space for new stock.

In the Asian market, particularly in China, the decline in Carnitine prices was notably sharper. As a major producer and exporter of Carnitine, China experienced a slowdown in its domestic market, driven by sluggish industrial activity, diminished consumer confidence, and a slower-than-anticipated recovery in the nutraceutical and pharmaceutical industries. The slowest factory output growth in four months highlights the challenges within the manufacturing sector. Additionally, the ongoing weakness in foreign orders further exacerbated the slowdown, leading to reduced Carnitine demand. With both domestic and international markets seeing lower activity, manufacturers faced an oversupply, which exerted downward pressure on Carnitine prices.

In India, the slowdown in manufacturing activity in December, which saw the slowest growth in 12 months, has contributed to the decline in prices for products like Carnitine. This deceleration, driven by heightened competition and price pressures, has fostered a more cautious market atmosphere. The diminished pace of manufacturing growth, along with a notable drop in new orders, which hit their lowest point of the year, suggests weaker production prospects. Consequently, demand for products such as Carnitine has softened, leading to price reductions. Manufacturers struggling to secure new orders may also be revising their purchasing strategies by reducing inventory levels and postponing purchases, further intensifying downward pressure on commodity prices like Carnitine.

In Europe and North America, demand for Carnitine showed little change, with most businesses refraining from making large purchases. Many companies had already stocked up on inventory earlier in the year in anticipation of the increased demand later. However, the absence of any major demand surges, coupled with the cautious purchasing stance of market participants, resulted in a more balanced supply situation, which kept downward pressure on Carnitine prices.

ChemAnalyst predicts that Carnitine prices are poised for a rebound at the beginning of the new year. This recovery is expected to be fueled by a rise in freight rates, as supply chains experience added strain during the Chinese Lunar New Year period, which could further drive up Carnitine prices. Market participants are anticipated to modify their purchasing strategies, with some likely to build up inventories in preparation for potential supply disruptions.