ABM – UB Eggs upselling 3 – Vits

19 Sep 2024

Most vitamin prices were stable to slightly weaker in the prompt market this week, and market coverage for Q4 is reported to be good or “better” among the major players. Supply uncertainty for Q1 remains, and buyers are looking to extend coverage when possible.

Production of vitamin A at major European producers BASF and dsm-firmenich remains down. Tianxin stopped production of biotin and D-Calpan at its plant in Leping, Jiangxi, at the beginning of July. The company has not disclosed when production will restart.

Many sources reported China vitamin transaction prices dropping, mainly because traders were selling at a lower price. Downstream users in China are well-covered for the national holiday period from 1-7 October, and buyers are not in a rush to purchase.

The potential dockworker strike at U.S. East and Gulf Coast ports, set for September 30, has triggered a surge in cargo volumes at West Coast ports as companies rush to avoid disruptions before the holidays. As more companies divert shipments, West Coast ports and inland hubs are facing congestion. Container yards in California and inland hubs such as Memphis, Tennessee, and Chicago are already clogging up, according to logistic sources, triggering shortages of the steel trailers needed to move containers. Importers are concerned that the gateways will buckle if more companies divert cargo to West Coast ports. They face a similar dilemma at alternative East Coast ports, such as Canada’s Port of Montreal, where importers may seek to divert shipments. A walkout would hit major U.S. seaports, including New York-New Jersey, Savannah, Georgia, Norfolk, Virginia, and Houston, Texas.

Written by Heather McGuire Doyle from Expana – [email protected]

📌 Vitamin A

A trader reported some lower pricing seen on vitamin A, with recent offers around $60.00/kg reported for the resell price from offshore suppliers. The trader added that it does not think everyone has coverage, so it sees more upside potential.

A second trader said buyers were now less concerned about vitamins, and while prices were still firm in Europe and China, demand was relatively muted. The trader added that Q1 was still to be covered by most people, but there was “no panic on the market.”

A manufacturer said that coverage for Q4 was nearly 100% in Europe. The producer added that it was not yet ready to quote Q1 pricing, but inquiries to cover that period were incoming. A second manufacturer said supply would not be sufficient until year end.

A third trader indicated FOB China prices were $60.00-65.00/kg and added that market demand was weak, mainly because the market had become less active after the Mid-Autumn Festival, and traders were selling within a lower price range.

📌 Vitamin E

A trader indicated lower vitamin E pricing in the prompt markets with indications at $18.00-19.00/kg and ocean freight offers at $16.00/kg FOB.

A second trader indicated FOB China prices were $18.00-19.00/kg.

A manufacturer said, “customers seem partly well covered and can survive Q4 2024, but they are aware that in Q1 2025, the situation might be even more problematic.”

A second manufacturer said the market was inactive after China’s Mid-Autumn Festival. It mentioned that prices were fluctuating in a high-level range and that buyers still had stocks; therefore, they were not in a rush to purchase.

📌 Vitamin D3

D3 price indications remained extremely wide.

A North American trader said it continued to hear prices from $30.00-55.00/kg in the prompt market.

A manufacturer continued to offer at $50.00/kg FOB China, while some traders offered at $32.00-35.00/kg FOB China.

The Chinese market has become less active after the Mid-Autumn Festival, leading traders to sell within a lower price range, a trader explained.

📌 D-Calpan

D-calpan price indications remain flat, although sellers continue to push for higher numbers. Coverage has been reported to be good in North America.

In the ocean freight market, manufacturer offers were in the range of $7.00-7.50/kg FOB China, while traders offered below $7.00/k.

📌 Biotin

Activity was muted in North America amid good coverage. Offers have been higher recently.

A trader said that the price trend was firm, but the market was bouncing back down again because of good coverage.

A producer offered $150/kg FOB China for biotin pure.

📌 B3

Buyers reported that no product was available below $6.00/kg in the prompt North American market. Price indications had been $5.40/kg in August.

A producer said it had concluded deals at $6.00-6.50/kg FOB China, adding that offer prices for Indian-origin material had increased to $6.00/kg FOB India. It noted that while the feed-grade vitamin B3 market was not very active, the food-grade market was very active.

A trader indicated prices at $6.20-6.80/kg FOB China.