MARKET TRENDS SPRING 2018 By Tony Xue General Manager ingredientsonline.com Shanghai, China
It is the time of the Chinese New Year, and after that, the Chinese people will be back at work from family reunification and expect a new and prosperous 2018. The pollution control pressure will be continuous, but the impact of the warming system is being reduced with the coming of spring. Before the Chinese New Year holiday, there was a sharp change in currency exchange rates. It was 6.35 RMB=1 USD and now it is below 6.2 RMB = 1 USD. Therefore, many Chinese suppliers put quoting on hold until the end of February. Another challenge is the suspension of transport across China during the holiday, and it is expected to be fully back to normal in early March.
Lastly, due to all types of challenges in China, there will be fewer factories for particular products who are large enough to handle the cost increase in pollution control, labor and power, who can manage all the supply from starting materials to the finished products and who can adopt the most advanced technology to get the best output rate, etc. Also, oligopolistic competition will manifest more and more.
Disclaimer - Due to the Chinese New Year and busy schedules, this article was written in mid-February. For more current or specific information, you can always contact email@example.com for assistance.
B12 Same as our last update, the factories located in Heibei province are cutting the output to stay within the guidelines for government pollution control requirement. The other factory in Ningxia province is increasing the price according to the supply situation. Generally, fewer and fewer low price quotations are offered and the price is increasing step by step. BCAA Leucine price is stable and at a high level now. We are seeing that the price of isoleucine and valine will increase in Q1, so the BCAA price will stay
BIOTIN Currently, the price is stable and at a high level. Factories are stopping quotation and shipping due to Chinese New Year, but generally, it will stay at the current level. The demand and supply are balanced. CALCIUM D-PANTOTHENATE Same with our last update, the quotation from the two major factories have been on and off in the last two months and the price is fluctuating. Compared with Q3 and Q4 of 2017, the price has come down a little and is expected to be stable in Q1. Again, it is still much higher than customer expectation and there is still room to fall. CHOLINE CHLORIDE/BITARTRATE The major factories in China have made some slight price adjustments again last month due to the starting material cost increase and currency exchange rate.
ingredient for beauty and joint health, and dosage is normally large.
China used to be the largest exporter, and now, Thailand and the U.S. are also joining the market. The price is increasing step by step, and also, the safety and assay test are the key points to get the right material. CITRIC ACID ANHYDROUS Price increased a little after the antidumping investigation which has come to an end now. It seems both customers and factories will accept this result, and after a busy season from last December to January, most blanket orders have been filled.
The fermentation grade leucine is still hard to get, and it will continue in Q1.
Generally, the price of Citric Acid is expected to be stable at the current level in Q1
BETAINE ANHYDROUS/BETAINE HCL The output in Shandong province is affected by pollution control, but availability is good as there are plenty of factories in China and throughout the world. The price may change a little bit due to the currency exchange rate, but generally will keep stable.
CoQ10 Currently, the price is stable and most blanket orders have been filled. In the spot purchase market, two to three factories will be competing with each other and it will determine the trend in 2018.
The demand and supply are balanced and the increase will be mild.
CHONDROITIN/COLLAGEN Chondroitin and Collagen products get more and more popular, especially Collagen. Collagen from different animal sources is becoming the new star
INGREDIENTSONLINE.COM • SPRING 2018
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