Pessimistic Market Outlook Anticipates For Carnitine in May Due to Gloomy Demand

Prices for Carnitine are expected to decline in mid-Q2 of 2023 due to several factors, including stable demand, a plentiful supply, low consumer confidence, and an increase in trade activity.

The price of Carnitine feed grade is anticipated to decline in the Chinese market this month, continuing the prior depreciation trend. This declining price trend may have been supported by the decision of manufacturers and suppliers who had enough inventory on hand to keep implementing cost-cutting measures to empty their shelves before replenishing them in the second quarter of 2023. After seeing the depreciating inquiries, low production costs in the domestic and global markets maintained the Carnitine market weak. Additionally, at the end of April, the cost of Carnitine for feed grade significantly dropped, which prompted domestic merchants to increase their stockpiles of this Carnitine feed grade. As a result, because participants were concerned about loss aversion, they focused on destocking their goods slower than projected. According to the most recent sources, market participants intend to supply Carnitine starting next month at a price higher than anticipated to make up for their losses. Additionally, in response to requests and demands from both domestic and foreign markets, manufacturers will likely focus on their production activities. Prices for Carnitine have decreased both last month and this month because the items are sold for close to what it costs to produce them to clear the stock.

The Chinese exporters are anticipated to quote the pricing of Carnitine feed grade at a lower rate considering the demand side, like the US and German markets. Because of this, the domestic markets in both regions can see an easing in the price trajectory. Carnitine prices were also on the lower end since trading activities were straightforward and freight expenses were modest. However, more international inquiries are anticipated in the upcoming months, which may boost consumer confidence and enable domestic retailers to increase the price of Carnitine in their regional markets.