Vitamin C market analysis 2017

Accord to the market survey on Vitamin C market, the price trend is keep stable.

Generally speaking, the mainly factors of affecting price are: market demandsupply sidehuman and unpredictable factors.

a) Market demand :  It is estimated that globle ascorbic acid demand is around 120,000 MT/ year in 2017. There are growing demand in Euro maket accord with factory export record in 2017. Many buyers like you are take a wait-an-see attitude, but real demand is not reduced. More maket demand info, you must know better than me.

b) Supply side:   Ascorbic acid 90% capacity is in China, at moment, globle shortage supply is the key reason lead to price rise, . Before 2017, during past 3 years, many producers are traped in blind competition and excess production capacity situation, the price is long term sustaining aroud usd 3-5/kg, some of plants suffer losses, such as Northeast, Luwei.  Since next half year of 2017, due to pollution control by government, total output are cut a lot due to production restriction.

* Noted: estimated output is uncertainty, for example CSPC get approved production now by govenment, but if PM 2.5 is exceed standard in air, production will be suspended soon.

According with above data, the total output is around 100,000 mt per year, shortage supply situation is still exist.   The total output will be continue influenced great by govenment.

Due to 2017 Nov- 2018 April is heating season, so it seems production restrition will carry on until April.

c) Human and unpredictable factors.

Each big factory’s offer still keep in high level. Seem nobody willing to reduce price to conclude business.

After Spring festval, there is FIC expo, March 22-24, conventionally factoies will reach some secret agreements to keep the price at high level.

Other unpredictable factor like exchange rate, also have some influence , RMB rate upvalue from 6.6 to 6.3 in past 1 month will give factory a reason to rise price.

To sum up in conclusion, the supply is still in shortage due to govenment’s strong determination to control pollution, and many buyers are holding orders after holidays, it will cause short-term demand increases, might push the price up again, and big factories’ willingness to keep the price in high level is strong too.  

If you want latest info, pls Email sales@toptionind.cn

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Post time: Jun-29-2018
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