For the Quarter Ending September 2024
North America
The Vitamin C market in North America demonstrated notable momentum during Q3 2024, with the United States manifesting as the key center of market fluctuations. Price negotiations appreciated from $4,240/MT to $4,380/MT CFR Los Angeles throughout July to September 2024. This market evolution reflects an intricate interplay of industry variables and broader economic indicators.
Enhanced consumption patterns from domestic food & beverage, pharmaceutical, and personal care industries emerged as principal market drivers, while logistical impediments created supply-side pressures. The market exhibited exceptional adaptability despite facing multiple operational challenges, including maritime congestion, heightened shipping expenses, and ongoing distribution network disruptions. The situation was further intensified by price fluctuations in China's market, a dominant Vitamin C supplier, generating cascading effects across the American consumer goods sector.
The steady price strengthening, marked by a $140/MT gain across the quarter, reflects robust market fundamentals and sustained developmental impetus. This trajectory resonates with broader regional patterns, demonstrating the North American Vitamin C market's inherent stability despite ongoing supply chain impediments. The synthesis of amplified regional demand, worldwide supply mechanics, and logistical hurdles has engineered a sophisticated yet fundamentally robust pricing landscape.
APAC
The Vitamin C landscape in Asia-Pacific exhibited remarkable pricing dynamics in Q3 2024, marked by a distinctive upward movement. In China, despite a slight decline of 3% from the previous quarter, prices rebounded by 3% in the second half of Q3, maintaining its position as a regional price benchmark. The market demonstrated notable price progression, with export valuations advancing from $3,360/MT to $3,515/MT FOB Shanghai between July and September 2024.
This market strengthening was supported by diverse operational factors and market fundamentals. Demand dynamics were characterized by consistent procurement from food fortification and beverage sectors, while supply elements were influenced by mounting production expenditures, including raw material costs and operational overheads. The confluence of increased production capacity and logistical constraints, especially port bottlenecks, generated supply-demand disparities supporting price appreciation.
Market resilience was evidenced through sustained buyer engagement and consistent order patterns. These demand indicators, combined with operational hurdles including freight expenses and supply chain intricacies, enabled industry participants to sustain healthy margins. China's domestic market remained instrumental in establishing regional price trends, influenced by both international procurement patterns and domestic consumption dynamics. The relationship between production capabilities and logistical impediments reinforced the market's upward trajectory.
Europe
The European Vitamin C landscape exhibited notable price movements during Q3 2024, with Germany functioning as the primary indicator of market dynamics. September prices reached USD 3,985/MT CFR Hamburg, reflecting broader market conditions. Market appreciation in the German Vitamin C market stemmed from interconnected supply limitations and demand forces. Manufacturing constraints, particularly in Asian production centers, created availability pressures influencing price levels. This was reinforced by sustained demand from food processing, beverage manufacturers, and cosmetic sectors maintaining consistent procurement activities.
Germany's market trends served as a bellwether for European pricing dynamics, exhibiting clear seasonal patterns and price correlations. Despite operational challenges, the market maintained its upward trajectory, underlining the European Vitamin C market's fundamental stability. The convergence of supply restrictions, sectoral demand patterns, and regional market forces cultivated a constructive pricing environment, characterized by sustained development and market equilibrium across Europe.
For the Quarter Ending June 2024
North America
During the second quarter of 2024, North America's Vitamin C market saw a mixed pricing trend. Prices climbed through April before experiencing a downturn that continued until June. This fluctuation was driven by several key factors affecting the market. The quarter has been marked by an oversupply of Vitamin C in the market, coupled with weak domestic demand from key end-user sectors such as food and beverages, pharmaceuticals, and nutraceuticals. This oversupply, driven by competitive pricing strategies from Asian producers, has been a significant factor in the continuous price decline. Additionally, disruptions in global trade flows, resulting in higher freight costs and extended lead times, have strained the supply chain, further contributing to the downward price pressure.
Focusing on the USA, the market has witnessed the most significant price changes. The overall trend for Vitamin C pricing in the USA has been predominantly negative, reflecting a consistent downward trajectory throughout the quarter. Seasonality has played a minimal role in altering this trend, as ample stockpiles have buffered against any potential seasonal demand spikes. The correlation between supply disruptions and reduced demand has created a cyclical effect, perpetuating lower prices. In comparing the first and second halves of the quarter, prices have dropped by an additional 5%, reinforcing the persistent negative sentiment. The latest quarter-ending price for Vitamin C in the USA stands at USD 4110/MT CFR Los Angeles, encapsulating the overall declining trend. The pricing environment throughout this quarter has decidedly been negative, driven by an oversupply situation, logistical challenges, and weak demand, thereby impacting market dynamics and profitability in the Vitamin C sector.
Asia Pacific
In the Asia-Pacific (APAC) region, the second quarter of 2024 has evidenced a distinct decline in Vitamin C prices, predominantly driven by an array of market dynamics. The overarching sentiment has remained negative, influenced significantly by an oversupply situation juxtaposed with tepid demand across various end-user sectors such as food and beverage, nutraceuticals, and pharmaceuticals. The market's equilibrium has been disrupted by consistent inventory surpluses, resulting in downward pressure on prices. This was exacerbated by logistical bottlenecks and rising shipping costs, which further dissuaded procurement activities. Additionally, economic uncertainties and constrained consumer spending have collectively contributed to the subdued market environment.
Focusing exclusively on China, the country has experienced the most pronounced price changes within the APAC region. Seasonal factors, coupled with the cyclical nature of manufacturing outputs, have accentuated the pricing volatility. From the previous quarter in 2024, prices saw a 12% reduction, highlighting a consistent downward trajectory. Moreover, a comparison between the first and second halves of the quarter revealed an 8% decline, underscoring the continuous depreciation of Vitamin C prices throughout the period. This culminated in the quarter-ending price of USD 3390/MT for Vitamin C Food USP Grade FOB Qingdao, marking a clear decrease in value.
The overall analysis delineates a challenging pricing environment, characterized by negative trends, ample supply, and lukewarm demand, all contributing to the persistent depreciation witnessed in the Vitamin C market throughout the second quarter of 2024 in the APAC region.
Europe
In Q2 2024, the European Vitamin C market experienced a significant downward pricing trend, driven primarily by a confluence of factors. The quarter witnessed persistent oversupply conditions, exacerbated by competitive pricing from Asian producers, particularly from China, which maintained a downward pressure on prices. Additionally, subdued demand from key downstream sectors such as food and beverages, pharmaceuticals, and nutraceuticals further contributed to the decline. Supply chain disruptions and logistical challenges also played a crucial role in amplifying market instability, leading to fluctuating prices and affecting procurement strategies across the region.
Focusing exclusively on Germany, the country experienced the most pronounced price changes within Europe during this period. Overall, the price of Vitamin C in Germany declined markedly, reflecting a stark seasonal and trend-based correlation. Compared to the same quarter last year, prices fell by 9%, and the quarter-over-quarter decrease from Q1 2024 was a notable 10%. The first half of Q2 saw a more significant drop of 8% compared to the latter half, underscoring the persistent bearish sentiment.
The German market culminated the quarter with Vitamin C priced at USD 3760/MT CFR Hamburg. The overall pricing environment for Vitamin C in Q2 2024 has been decidedly negative, characterized by squeezed profit margins for suppliers and continuous downward adjustments in price quotations. This negative sentiment is reflective of broader market dynamics, where oversupply and constrained demand have dictated trading conditions, pushing prices to consistently lower levels.
For the Quarter Ending March 2024
North America
The Vitamin C market in North America experienced a significant price surge during the third quarter of 2024. Prices rose from $3980/mt in January to $4320/mt CFR Los Angeles by March. This surge was driven by factors such as limited product availability, rising freight costs, port congestion, and halted quotations from Asia. To address these challenges, U.S. authorities worked closely with industry partners to improve real-time tracking of freight movements, particularly for nutraceutical shipments from China.
Chiefly, the first quarter of 2024 presented a complex landscape for the North American Vitamin C market, characterized by supply chain disruptions and ongoing shipping challenges. These issues led to a product shortage and subsequent price increases. However, local suppliers capitalized on this situation by raising prices. The temporary suspension of shipments during the Chinese Lunar New Year holidays in mid-February, along with disruptions in the Red Sea region in 2023, contributed to market instability. Despite expectations of a post-holiday demand surge, the anticipated growth in the U.S. market fell short of analysts' projections. Nevertheless, demand from the food & beverage (F&B), nutraceutical, and pharmaceutical industries remained strong throughout the quarter.
The collapse of the Francis Scott Key Bridge and the subsequent shutdown of the Port of Baltimore on March 26, as evaluated by experts at ChemAnalyst, are anticipated to cause substantial and far-reaching effects throughout the nation. These disruptions are expected to particularly impact the ports of Los Angeles and Long Beach. As a result, these ports might see heightened activity and enhanced bottlenecks, leading to potential price hikes in the near future.
APAC
During the first quarter of 2024, the Vitamin C market in the Asia-Pacific region, especially in China, saw remarkable growth. Prices in China skyrocketed from $2780 per metric ton in January to $3440 per metric ton FOB-Shanghai by March, representing a roughly 24% increase over the period. This significant upward trend in March marked a substantial recovery from the challenges faced in the fourth quarter of 2023, which included subdued demand from end-users, limited new inquiries, and surplus inventory.
From the onset of the quarter, there was a discernible strengthening in demand that persisted through March, signaling a revitalization in market sentiment. Many Vitamin C suppliers opted to suspend quotations to catalyze positive market momentum, given that prices had languished at lower levels for an extended duration. This strategic move to bolster market dynamics had a cascading impact on global markets, which was further magnified by supply chain disruptions and escalating international demand. Concurrently, this upward price trend empowered participants in the Chinese market to capitalize robust profit margins throughout the quarter.
Even during the Lunar Chinese New Year holidays, the domestic Vitamin C market exhibited resilience, underpinned by vigorous manufacturing activities in the lead-up to the holiday and the availability of fresh inventory. Notwithstanding challenges such as waning consumer confidence, deflationary pressures, youth unemployment, diminished exports, and a contraction in foreign investment, China's manufacturing sector showcased resilience especially for a number of supplements and nutraceutical products including Vitamin C.
Europe
During the first quarter of 2024, the Vitamin C market in Europe encountered significant obstacles, primarily attributed to trade route disruptions and cautious consumer expenditure. The supply-demand imbalance induced price volatility, particularly in Germany, with market exhibiting a consistent upward trend throughout the quarter. Ongoing geopolitical tensions and economic uncertainties further dampened consumer spending enthusiasm. The European Central Bank's decision to uphold elevated interest rates exacerbated the challenging economic milieu in the region. Continuous disruptions in the Red Sea region caused trade impediments, leading to shipment delays and escalated freight expenses, which influenced market pricing dynamics throughout Q1 2024. In January, Vitamin C prices in the German market surged to $3210/mt CFR Hamburg, further escalating to $3920/mt by March.
From the commencement of the quarter, increased demand from sectors like F&B, nutraceuticals and pharmaceuticals within Germany exacerbated port congestion and trade complexities, particularly from Asia, with China being a notable contributor. Faced with limited inventory amid surging demand, sellers adjusted their price quotations, capitalizing on this favorable market momentum throughout the quarter. The Chinese Lunar New Year celebrations in mid-February further augmented this upward price trajectory, as numerous Chinese suppliers revised their pricing ahead of the holiday hiatus. Concurrently, the persistent disruptions in the Red Sea region continued to impede trade routes between Asia and Europe, resulting in elevated freight expenses and influencing Vitamin C pricing in Germany. As a result, the German vitamin market experienced pronounced price fluctuations during this period. Importers in Germany grappled with escalating costs due to the heightened prices of Vitamin C in China, further exacerbated by trade disruptions impacting their supply chains.
For the Quarter Ending December 2023
North America
During Q4 2023, the North American market for Vitamin C witnessed sluggish demand, primarily due to limited inquiries and offtakes from end-users, particularly in the nutraceutical and pharmaceutical sectors. The market exhibited some instability, with demand slightly skewed while supply remained ample. Despite rising energy costs and fluctuating pricing, the Vitamin C market in the USA maintained an optimistic outlook, especially at the quarter end.
Prices for Vitamin C started the quarter positively at $3590/mt but concluded on a negative note at $3430/mt. Compared to the same quarter of the previous year, the USA market experienced a negative correlation of -41.2% in pricing trends, largely attributable to the persistently low demand from end-users and abundant supply. Analysts observed minimal upward momentum in various vitamins, with many remaining in a consolidation stage. Import volumes in Q4 2023 surpassed those of Q4 2022, suggesting that retailers may have completed destocking and were preparing for the holiday season in December.
As the quarter drew to a close, the American economy in 2023 was aptly described as "miraculous." Despite concerns of an impending recession and doubts about managing inflation without significant job losses, the US economy not only avoided recession but also demonstrated overall accelerated growth. In the final weeks of December, increased consumer spending in the U.S. positively influenced the Vitamin C industry with prices going up.
APAC
In quarter 4 2023, the Vitamin C market in the APAC region exhibited diverse trends, with some products witnessing price increases while others faced declines. Rising raw material costs and export pricing contributed to higher Vitamin C prices across the Asia Pacific region, including China and India. However, demand from the nutraceutical and pharmaceutical sectors dipped, particularly in November, creating an imbalance in equilibrium. China experienced deflation, with the Consumer Price Index showing a year-over-year decrease of -0.5%. In contrast, the nutraceutical market in India expanded due to improved economic conditions, increased production levels, and enhanced new business inflows. Despite a rise in output, China witnessed deflation in the Vitamin C Food USP Grade price, declining by -9% from the previous quarter, owing to ample supply surpassing total demand. Weak international demand resulted in significant price reductions despite increased production. The absence of new inquiries from domestic or foreign markets further underscored the decline in Vitamin C offtakes in China's end-user pharmaceutical and nutraceutical sectors. In December, the price of Vitamin C Food USP Grade FOB Qingdao in China for Q4 2023 stood at USD 2430/MT. China's economy gained attention in December, with improving 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 C market showcased positive growth, with its price trend appreciating and ending the year on a promising note.
Europe
The European market for Vitamin C in the fourth quarter of 2023 faced challenges due to several factors. First, there was a significant decrease in end-user demand from the food and beverage (F&B), pharmaceutical, and nutraceutical industries given the sufficiency of stocks. This decline in demand led to a reduction in price negotiations and limited new enquiries from market players. Additionally, the market was impacted by high supply, as domestic players had a significant amount of inventory on hand to meet demand. Another factor affecting the market was the decrease in energy prices, which contributed to the overall downward trend in prices.
In Germany, the largest market for Vitamin C in Europe, prices fell by -6% from the previous quarter. The decrease in costs can be ascribed to the diminished end-user requirement and the plentiful availability of vitamin C within the domestic market. With prices rising to USD 2750/MT CFR Hamburg in December, the German market at the end of the quarter gained momentum. One important reason for this spike in pricing is the suspension of vitamin C quotations in China, a key exporter, which has led to higher prices. As a result, German importers had to deal with increased prices for acquiring vitamin C supplements, which caused the local market to grow in tandem. This price increase in Germany is also caused by increased freight prices as a result of the Israeli-Hamas conflict and the obstruction of the Suez Canal route.
