North America
During the third quarter of 2023, the price trend of Vitamin B2 (Riboflavin) witnessed a significant decrease, as FOB values dropped from $45,500/mt to $42,550/mt between July and September. This decline marked a pessimistic end to the quarter, driven primarily by low demand and abundant supplies available to meet the overall demand. The concerns about the growth of the US economy persisted throughout the quarter, raising the specter of higher inflationary pressures. The US manufacturing sector experienced contraction in July for the ninth consecutive month, with businesses reducing employees and production due to a decline in new orders amid an overall demand slump. The influx of nutraceuticals, especially vitamin B2, into the United States decreased substantially in the second half of Q3, attributed to ample supply from domestic producers. Despite the Federal Reserve’s aggressive monetary tightening to combat record inflation, the increase in inventories indicated a broad lack of consumer demand. However, positive economic indicators in the latter part of the second half suggested that the US economy might avoid the predicted recession with the intervention of the Federal Reserve.
Asia Pacific
In China, the values of Vitamin B2 stabilized towards the end of the third quarter in 2023, averaging $37,560/mt in September after starting at a negative $38,820/mt in July. The slower-than-expected growth of the world’s second-largest economy in the first half of the year continued into the second half, beginning the third quarter on a negative note due to escalating deflation, high youth unemployment, and weak foreign demand. The strengthening Yuan relative to the USD and increasing end-user demand, both locally and internationally, were the main drivers behind China’s Vitamin B2 price increase in the latter part of the quarter. China’s golden week in September contributed to the upward price trend for Q3, as manufacturing and freight activities increased in response to heightened demand and concerns of potential shortages. The stronger Yuan and the weakening US dollar made exporting nutraceuticals, including Vitamin B2, more expensive, impacting both domestic and international markets.
Get Real Time Prices of Sodium Benzoate: https://www.chemanalyst.com/Pricing-data/vitamin-b2-1261
Europe
In Europe, the third quarter of 2023 began with Vitamin B2 price values in Germany’s domestic market at a negative $49,000/mt in July, but they stabilized towards the end of the quarter, averaging $47,900/mt CFR Hamburg in September. Excess inventory levels drove Vitamin B2 suppliers to reduce their quotations over the quarter to meet overall demand. The German industrial sector faced challenges at the beginning of the third quarter, with significant declines in output, new orders, and factory prices reported by nutraceutical suppliers. The constant sharp decline in new orders, the largest in over three years, and customers lowering stock levels indicated lackluster demand for various commodities, including nutraceuticals. Economic uncertainty, geopolitical tensions, and tighter financial conditions influenced the decline in demand. Prices, however, increased due to higher manufacturing costs in China and elevated freight costs ahead of China’s Golden Week holiday in the latter half of Q3, impacting this major importing region.
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