Market Trends Fall 2017

MARKET TRENDS

MARKET TRENDS

By Tony Xue | General Manager, ingredientsonline.com Shanghai, China

5 HTP The harvest in Africa has been stable for the past two years and it’s expected to stay the same for this year with no big changes in price and supply. ACESULFAME K FCC Acesulfame K price increased slightly due to the sharp increase of sucralose in 2016 but now it's very stable. If there is no big change on the factory side, it is predicted the supply will be very stable for the rest of the year. ASCORBIC ACID SERIES Ascorbic Acid prices kept increasing in the first half of 2017 and now tend to be stable but firm. The traditional major manufacturers are still claiming the shortage is affected by shut-downs in the summer for maintenance. However, as of our last update, we have witnessed new factories such as Tuoyang, Lvyuan and Tiger provide good availability to the market. We predict that the supply will become balanced in the next one to two quarters. BETAINE There are three starting materials for Betaine: Trimethylamine, Chloroacetic Acid and Sodium Carbonate. Trimehtylalmine is stable and Chloroacetic acid is on a rise by RMB 1000/mt which leads to a slight increase for the Betaine price. CARNITINES The major factories of Carnitine including NEPGF, Hengtai and Koncep, are all shut down due to environment control. The other factory, Chengda in the Zhejiang Province, resumes production in July, but as was with D3, the governmental environment protection team is inspecting this area which may further affect the production. All the factories have many back orders and new shipment delivery could only be in September.

CHOLINE BITARTRATE There are three starting materials for Choline Bitartrate: Trimethylamine, Ethylene Oxide and Tartric Acid. Tartic Acid prices are on the rise by RMB 1000/mt, while the Ethylene Oxide price is on a decrease by RMB 800/mt and Trimethylalamine is stable. In order to keep the price stable and firm, the factories are limiting the output. initiating antidumping and countervailing duty investigations of imports of Citric Acid and certain citrate salts from Thailand, Belgium and Colombia. In order to prevent possible tracing and duty claims, Indian manufacturers are controlling the output. This leads to a tight supply of Citric Acid and its salts, and a slight price increase. CURCUMIN 95% EXTRACT The supply is stable now, although some reports advise that the harvest in India this year is not as good as last and most factories already have enough starting material from different channels. D-CALCIUM PANTOTHENATE Vb5 is experiencing a sharp increase as of now. On one side, factories are shutting down production for maintenance, and on the other, the two major factories have stopped quoting and are not likely to resume in the short term. DHEA Currently, DHEA is made from two sources: 4-Androstenediol from Soy andWild Yam. The one from Soy is on a down trend because of the sufficient soy supply. Some factories are trying to add fermentation into this process flow to make the cost better. The one fromWild Yam is on a rise because of environment control. CITRIC ACID The U.S. Department of Commerce is

GABA This product’s output is highly affected by the weather. Due to the hot summer looming, the haze is much less, so the pressure to deal with environment control is less. The major factories’ production are back to normal and they are trying to fulfill orders that were left behind from earlier. The supply is tight but the price should be stable now. GAMMA ORYZANOL Due to rawmaterial and labor cost increases, Gamma Oryzanol prices have increased a little bit. Market demand is on the rise and has good future prospects due to increased awareness of its health benefits. 1. Current market: Due to environment control, small to medium sized factories are being shut down one by one. The production cost has decreased a little bit while the major factories enlarge the output a little bit. 2. Price Status: Its starting material’s (shrimp and crab shell) supply has been stable for the past two years and harvest is good. Only a fewmajor factories have stayed in the market with good investment and are set up for environment control. The market and supply are expected to be stable for the rest of the year. GLYCINE USP The price of Glycine is on a slight rise currently. One of the major factories in China is forced to hold production due to environment control. The buyers in China are trying to get more supply from countries close by, such as Cambodia. GRAPE SEED EXTRACT Overall, the price is stable, but there are some changes that factories are focusing on while supplying the high quality extract with high GLUCOSAMINE

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INGREDIENTSONLINE.COM • FALL 2017

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