For the Quarter Ending September 2024
North America
The Vitamin B9 market in North America demonstrated stability during Q3 2024, with the United States maintaining its position as the key center of market activity. Price levels remained consistent and showed marginal increment from $43,100/MT to $43,010/MT FOB New Jersey from July to September 2024. This quarter contradicted last quarter’s trend by exhibiting a well-balanced market environment. This market stability reflects a balanced interplay of industry variables and broader economic indicators.
Steady consumption patterns from domestic nutraceutical and pharmaceutical industries provided consistent market support, while managed logistics maintained supply-side equilibrium. The market exhibited reliable performance despite ongoing operational challenges, including maritime congestion, shipping expenses, and distribution network complexities. The stability was further reinforced by balanced price levels in China's market, a dominant Vitamin B9 supplier, maintaining equilibrium across the American nutraceutical sector.
The price consistency, with marginal fluctuations across the quarter, reflects well-established market fundamentals and sustained stability. This pattern aligns with broader regional trends, demonstrating the North American Vitamin B9 market's inherent balance despite ongoing supply chain complexities. The equilibrium between regional demand, worldwide supply mechanics, and logistical factors has maintained a stable yet sophisticated pricing landscape.
APAC
The Vitamin B9 landscape in Asia-Pacific exhibited consistent pricing patterns in Q3 2024, marked by steady market conditions. China's market maintained stable quarter-over-quarter performance, reinforcing its position as a regional price benchmark. The market demonstrated steady price levels, with export valuations holding between $22,500/MT to $22,530/MT FOB Shanghai from July to September 2024.
This market stability was underpinned by balanced operational factors and market fundamentals. Demand patterns showed consistent procurement from nutraceutical and pharmaceutical industries, both local and international, while supply elements remained steady despite ongoing production costs and operational considerations. The balance between production capacity and logistical frameworks maintained supply-demand equilibrium throughout the quarter.
Market consistency was evidenced through regular buyer engagement and predictable order patterns. These steady demand indicators, combined with managed operational factors including freight expenses and supply chain processes, enabled industry participants to maintain consistent margins. China's domestic market continued its role in stabilizing regional price trends, balanced by both international procurement patterns and domestic consumption dynamics. The harmony between production capabilities and logistical frameworks reinforced market stability.
Europe
The European Vitamin B9 landscape maintained steady price levels during Q3 2024, with Germany serving as the primary indicator of market stability. September prices held at USD 27,990/MT CFR Hamburg, reflecting broader market equilibrium. The quarterly performance remained consistent between first and second half, demonstrating market balance. Despite historical variations, the market maintained stability with steady quarterly performance.
Market stability stemmed from balanced supply capabilities and demand patterns. Manufacturing processes, particularly in Asian production centers, maintained steady output levels influencing price consistency. This was complemented by reliable demand from pharmaceutical and nutraceutical sectors maintaining predictable procurement activities.
Germany's market trends provided a steady benchmark for European pricing patterns, exhibiting consistent seasonal performance and price stability. Through operational challenges, the market maintained its equilibrium, underlining the European Vitamin B9 market's fundamental stability. The balance between supply capabilities, sectoral demand patterns, and regional market forces sustained a stable pricing environment, characterized by consistent performance and market equilibrium across Europe.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has witnessed a significant decline in Vitamin B9 prices in the North American region. This downward trend has been driven primarily by a confluence of factors, including an oversupply situation, competitive pricing from Asian manufacturers, and diminished demand from end-user sectors. The market has faced persistent disruptions in international trade flows, exacerbating the supply glut and prompting sellers to reduce their prices to clear excess inventory. Additionally, higher freight costs and extended lead times for imports have compounded the challenges, further driving prices downwards.
In the USA, which has experienced the most pronounced price changes, the overall market sentiment has been negative. Seasonal fluctuations and an oversupply condition have led to a steady decline in prices, influenced by high inventory levels and cheaper imports. The correlation between supply excess and weak demand has been evident, with prices dropping by 12% compared to the same quarter last year. However, there was a slight recovery from the previous quarter, with a 2% increase, indicating a brief stabilizing effect before prices fell again.
The quarter-ending price stood at USD 45,700 per metric ton of Vitamin B9 FOB Illinois, USA. Overall, the pricing environment for Vitamin B9 in Q2 2024 has been overwhelmingly negative, characterized by a persistent decrease in prices due to oversupply, competitive import pricing, and reduced domestic demand.
Asia Pacific
The second quarter of 2024 has witnessed a notable decline in Vitamin B9 prices across the APAC region, driven by various market dynamics. Key factors influencing this downward trend include an oversupply situation caused by heightened production capabilities, diminishing demand from end-user sectors, and substantial disruptions in global trade logistics. The latter, exacerbated by geopolitical tensions and increased shipping costs, has prompted cautious procurement strategies among buyers, further intensifying price pressures. Additionally, inventory levels have remained high, with suppliers eager to offload stock, thereby contributing to the persistent price depreciation.
Focusing on China, the region experiencing the most significant price fluctuations, overall trends indicate a prolonged period of instability marked by seasonal production cycles and fluctuating international demand. From the previous quarter in 2024, the price dropped by -3%, reflecting a consistent negative sentiment.
The latest quarter-ending price for Vitamin B9 in China, at USD 24,300/MT FOB Qingdao, encapsulates the negative pricing environment. This consistent decrease underscores a challenging market for suppliers, compelled to lower prices amidst an oversupply and tepid demand landscape. Overall, the pricing environment for Vitamin B9 in the APAC region during Q2 2024 has been predominantly negative, driven by an imbalanced supply-demand dynamic and external logistic complications.
Europe
In Q2 2024, the Vitamin B9 market in Europe has experienced a significant downward trend in prices. The decrease can be attributed to a plethora of factors, including oversupply conditions, aggressive pricing strategies from key producers, and subdued demand from downstream industries such as pharmaceuticals and nutraceuticals. The supply chain has also been impacted by ongoing logistical challenges and disruptions in import trade flows from major exporters, further exacerbating the market imbalance. These issues have collectively contributed to lower price quotes to stimulate sales amidst high inventory levels.
Focusing on Germany, which has witnessed the most pronounced price fluctuations, the market sentiment remains bearish. The overall trend reflects a sustained decline in Vitamin B9 prices, with seasonality and supply-demand dynamics playing crucial roles. The percentage change from the same quarter last year shows a 3% decrease, emphasizing the ongoing pressure on profit margins for suppliers.
A closer examination reveals that the price comparison between the first and second halves of Q2 2024 indicates a further 2% decline. This reinforces the prevailing sentiment of a market grappling with excess supply and weak demand. Concluding the quarter, the price settled at USD 29,200 per metric ton CFR Hamburg in Germany, underscoring the persistent downward pressure. Overall, the pricing environment for Vitamin B9 in Europe during this period has been decidedly negative, driven by supply imbalances and tepid market activity.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Vitamin B9 market saw a balanced dynamic between demand and supply, accompanied by a noticeable increase in prices. Vitamin B9 prices skyrocketed from $44,450/mt in January to $45,200/mt FOB New Jersey by March. However, the market faced challenges such as limited product availability, escalating freight costs, port bottlenecks, and reduced imports from Asia. In response, U.S. authorities teamed up with industry leaders to improve real-time monitoring of freight movements, particularly focusing on nutraceutical shipments from China.
The first quarter of 2024 combinedly presented a complex scenario for the North American Vitamin B9 market, grappling with supply chain disruptions and ongoing shipping issues. These challenges led to a Vitamin B9 shortage, pushing prices higher. Nevertheless, local suppliers managed to take advantage of the situation by raising prices, supported by limited imports from Asia and increased consumer demand. China, being a major producer, and the U.S., a primary importer, experienced shipment delays during the Chinese Lunar New Year holidays in mid-February. Despite expectations of a demand surge for nutraceuticals, including Vitamin B9, following the post-holiday market rebound in China, the anticipated increase in the U.S. did not materialize as forecasted by industry analysts. Nonetheless, demand remained robust in the U.S. throughout the quarter, fueled by new inquiries and steady downstream procurement.
The end of 2023 saw supply chain and trade disruptions due to a security crisis in the Red Sea, resulting in substantial increases in freight charges. These elevated costs persisted until the end of Q1, impacting various trade routes and causing congestion at U.S. ports on both coasts, as well as disruptions in the Panama Canal, which affected commodity prices.
APAC
During the first quarter of 2024, the Vitamin B9 market in the Asia-Pacific (APAC) region, particularly in China, experienced modest growth. Prices in China remained stagnant throughout the quarter with values assessing at $24050 per MT FOB Shanghai in both January and March. This consistency in trend through March marked a notable improvement from the challenges encountered in the fourth quarter of 2023, which included subdued demand from end-users, limited new inquiries, and excess inventory.
From mid-January 2024 onward, demand began to strengthen steadily and sustained momentum through March, signaling a recovery in market sentiment. The first quarter of 2024 demonstrated significant improvement with rising prices, reflecting a more balanced relationship between supply and demand. This upward trajectory allowed participants in the Chinese market to maintain healthy profit margins throughout the quarter. However, growth slowed in March, with prices experiencing a slight decline. Even during the Lunar Chinese New Year holidays, the domestic Vitamin B9 market remained resilient, supported by robust manufacturing activities leading up to the holiday and the availability of fresh inventory. Additionally, the international demand for Vitamin B9, especially from the pharmaceutical and other sectors, added complexity to the supply-demand dynamics, influencing market trends later.
Despite facing challenges such as declining consumer confidence, deflationary pressures, youth unemployment, reduced exports, and a decrease in foreign investment, China's manufacturing output exhibited resilience. The domestic Vitamin B9 market in China experienced significant improvements, characterized by an increase in demand and growth in manufacturing output.
Europe
During the first quarter of 2024, the Vitamin B9 market in Europe faced substantial challenges, mainly due to disruptions in trade routes and cautious consumer spending. The imbalance between supply and demand led to price fluctuations mainly in Germany. Additionally, ongoing geopolitical tensions and economic uncertainties contributed to consumer reluctance to spend. The European Central Bank's decision to maintain high interest rates further intensified the difficult economic conditions of the region. Persistent disturbances in the Red Sea caused trade disruptions, resulting in shipment delays and increased freight costs, which impacted market prices throughout the quarter. In January, prices in the German market skyrocketed to $29,600/mt CFR Hamburg, climbing further to $29,700/mt by March. However, they slightly dipped to $29,300/mt in February.
At the onset of Q1 2024, heightened demand from sectors such as nutraceuticals and pharmaceuticals within Germany exacerbated port bottlenecks and trade scenario, particularly from Asia, notably China. With limited inventory available amidst increased demand, sellers raised their price quotations and capitalized on this momentum throughout the quarter. The Chinese Lunar New Year celebrations in mid-February further bolstered this upward trend in prices, as many Chinese suppliers adjusted their prices before the holiday break. Concurrently, persistent disruptions in the Red Sea continued to impact trade routes between Asia and Europe, leading to elevated freight costs and influencing the pricing of Vitamin B9 in Germany. Consequently, the German vitamin market witnessed significant price fluctuations during this period. Importers in Germany found themselves contending with rising costs due to the heightened prices of Vitamin B9 in China, exacerbated by disruptions in trade that affected their supply chains.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the North American market for Vitamin B9 experienced a slight depreciation in the pricing trajectory, attributed to weakened demand from end-users in both the nutraceutical and pharmaceutical sectors. The market was marked by instability and an oversupply of Vitamin B9. Despite the challenges of rising energy costs and fluctuating pricing, the Vitamin B9 market in the USA remained cautiously optimistic, particularly towards the end of the quarter.
At the beginning of the quarter, Vitamin B9 prices stood at $46,500/mt and declined to $43,660/mt FOB New Jersey by the end. Analysts noted limited upward momentum in various vitamins, with many remaining in a consolidation phase. Import volumes during Q4 2023 exceeded those of Q4 2022, indicating that retailers may have finished destocking and were gearing up for the holiday season in December.
As the quarter concluded, the American economy in 2023 was described as "miraculous." Despite concerns about an impending recession and managing inflation without significant job losses, the US economy not only averted recession but also demonstrated accelerated growth overall. In the final weeks of December, increased consumer spending in the U.S. positively impacted the Vitamin B9 industry, leading to price increases.
APAC
In the fourth quarter of 2023, the Vitamin B9 market in the APAC region displayed varied trends, with certain products witnessing price hikes while others experienced declines. Coming to the market for Vitamin B9, its pricing chart remained stable during Q4 2023. Increased raw material costs and export pricing contributed to elevated Vitamin B9 prices across the Asia Pacific region, including China and India. However, demand from the nutraceutical and pharmaceutical sectors decreased, particularly in November, causing an imbalance in equilibrium.
Conversely, the nutraceutical market in India expanded due to improved economic conditions, heightened production levels, and increased new business inflows. In China, weak international demand led to substantial price reductions despite heightened production. The absence of new inquiries from domestic or foreign markets further emphasized the decline in Vitamin B9 offtakes in China's end-user pharmaceutical and nutraceutical sectors. By December, the price of Vitamin B9 FOB Shanghai in China for Q4 2023 stood at USD 23,950/MT. China's economy garnered attention in December, with improvements in PMI and rising consumer confidence. Throughout the year, China's nutraceutical industry experienced mixed sentiments, with some product markets plummeting while others rebounded. Notably, the Vitamin B9 market showcased positive growth, with its price trend appreciating and ending the year on a promising note.
Europe
In the fourth quarter of 2023, the European Vitamin B9 market encountered various challenges reflective of trends seen in China and the US. Prices for Vitamin B9 experienced a moderate decline during the quarter, primarily due to a substantial drop in end-user demand from the food and beverage (F&B), pharmaceutical, and nutraceutical sectors, driven by sufficient stock levels. This decline in demand resulted in fewer price negotiations and limited new inquiries from market participants. Additionally, the market faced pressure from high supply levels, with domestic players maintaining significant inventory to meet demand. The decrease in energy prices also contributed to the overall downward price trend. The decline in costs can be attributed to reduced end-user demand and ample availability of Vitamin B9 in the domestic market. However, by December, prices were recorded at USD 27,600/MT CFR Hamburg, indicating momentum in the German market at the quarter's end. A significant factor driving this price increase was the suspension of Vitamin B9 quotations in China, a major exporter, leading to higher prices. Consequently, German importers faced elevated costs for purchasing Vitamin B9 supplements, stimulating growth in the local market.
