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  • Turbulence in the Vitamin C Market in 2009
  • 2008 has been the least calm year in memory for the vitamin C market.The market price at the end of the year has a direct bearing on the placement of long-term purchase orders and the profit ...
  • 2009-02-17
  • 2008 has been the least calm year in memory for the vitamin C market.The market price at the end of the year has a direct bearing on the placement of long-term purchase orders and the profit rate for the whole of 2009.The price of vitamin C was always low from 2005 with an average level of only around US$3.0/kg. The price hardly changed each year and producers had a low profit rate.The situation had some improvement only at the end of 2007. Owing to the overall recovery of the API(active pharmaceutical ingredient) marketthe price of vitamin C has kept increasing in 2008The average export price reached more than US$ 8.0/kg from January to October 2008.The average monthly price has stayed around US$10.0/ kg in the second half of 2008a price peak seldom seen in recent yearsThe vitamin C market will be faced with more challenges in 2009.

     

    The favorable market for vitamin C in 2008 did not arise only because of the API price recovery. Like other vitamin varietiesmajor export destinations of vitamin C produced in China as a food additive are Europe and North AmericaExport data from www healthoocom show that due to impacts of the financial crisis since August 2008except vitamin Cthe amount of other vitamin varieties exported, especially those used as feed additiveshas reduced drasticallyThe major downstream demand for vitamin C has remained food-and drink-additives for human consumption without much changeIn the API sector of China, vitamin C has always been a leading large-volume productand its market trend produces widespread influences.

     

    Not long ago the United States was pushing forward a case complaining of a vitamin C monopoly in China. It is not a case that can be resolved with any one particular Chinese producer.The four major vitamin C producers(North China Pharmaceutical Group Co. Ltd.Shijiazhuang Pharmaceutical Group Corp. Northeast China Pharmaceutical Group Co.Ltd. and Jiangshan Pharma- ceutical Co.Ltd.) are all state-owned enterprises. There is as yet no conclusive judgment in the case.

     

        According to www.healthoo.comfrom November 2008 vitamin C purchasers started talks on long-term purchase orders for 2009 and signing their contracts.As the market price was quite high at the end of 2008producers requested a relatively high price in long-term purchase orders The number of clients who have already placed long-term purchase orders is not greatand the unit price in long-term purchase orders already signed for 2009 is the highest in recent yearsProducers in China are optimistic about the situation in 2009. Judging from the supply and demand in 2008the global demand growth was much higher than in previous years and also higher than producers expected.In additionit seems that old enterprises need not pay too much attention to new entrants.Of the two new vitamin C producersonly Zhengzhou Tuoyang Industrial Co.Ltd. has put its lab tested products on the market, and their supply will not be big in 2009.In the past the vitamin C market has given people excessive expectations and great disappointment

    (Source: Healthoo) 

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