Market Trends Winter 2018

MARKET TRENDS

By Tony Xue General Manager ingredientsonline.com Shanghai, China MARKET TRENDS WINTER 2018

W ell, it’s winter, and with the heating and warming system being launched in North China, it is a disturbing time for Chinese factories to face and challenge the pollution control pressure. As updated in last our few reports, the Chinese government is taking measures and actions to bring pollution under control and now the measures are even stricter. The news about environmental protection is well reported and known. The data is monitored in real time and published on the government’s official website. It is the right thing to do and good for people’s living conditions, but in the business world, the supply and cost are greatly affected. There are two periods of such market conditions: One was in 2008, the year of the Beijing Olympics, and the other is now, the new era under the administration of President Xi. We believe it will have a long and profound influence not only now, but for many years to come.

It is the right thing to do and good for people’s living conditions, but in the business world, the supply and cost are greatly affected.

on and off in the last two months. The price is at a high level compared with last year or earlier this year, but it is fluctuating. One reason is that a new factory has stepped into production and offers a small amount of availability, and the other is the price is way beyond the customer’s expectation which slows down the transaction. CHOLINE CHLORIDE/BITARTRATE The major factories in China have made some slight price adjustments in the last two months due to the starting material cost increasing and the currency exchange rate. The price increase is more reflected in the feed grade of Choline Chloride, and for food grade products, the price has increased step by step. CHONDROITIN/COLLAGEN Chondroitin and Collagen products are getting more and more popular, especially Collagen. Collagen from different animal sources is

B12 The factories located in Heibei Province are cutting output to stay within the guidelines for the government’s 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 The major factory in Hubei Province is providing extremely limited supply of Leucine now. Valine and Isoleucine increased a little bit but the availability is still balanced with demand. As a result, BCAA price is high and firm due to the Leucine shortage. The vegan version of BCAA is even shorter because fermented Leucine is very hard to find in the market. The availability from the only factory is extremely short as well.

BETAINE ANHYDROUS/BETAINE HCl The output in Shandong Province is affected by the 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. BIOTIN Due to the starting material shortage, the price of Biotin is rising. The increase is more obvious in USP grade against 2% and 1% in food and feed grade. This increase gets a lot of attention from feed pre-mixed factories and this trend will continue for two to three months. CALCIUM D-PANTOTHENATE The quotation from the two major factories are

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INGREDIENTSONLINE.COM • WINTER 2018

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