China is enjoying a surge in vitamin B5 (VB5) exports, according to a new report by China market expertsCCM.
According to the report, the volume of VB5 exports in H1 2014 was up 43% year-on-year, while the total value of these exports was 118% higher than during H1 2013.
This astonishing performance has been driven by two main causes. Firstly, the exit of DKS Co. Ltd. from the VB5 market left a gap that Chinese companies rushed to fill, enabling many of them to substantially increase their exports.
Secondly, the leap in export value has been fuelled by a huge spike in VB5 prices, which began in November 2013 and has only recently started to reverse itself.
The price spike began in November 2013 when Xinfu Pharmaceutical raised its quoted price for VB5, following a similar move by BASF. Initially justified as a reaction to a fire at one of rival VB5 producer Xinfa Pharmaceutical’s facilities, though no suspension of production was ever announced, the move enabled Xinfu to almost double its profit margins from 32% in 2013 to 62% in H1 2014.
VB5 prices have now retreated from their May 2014 peak of USD 22,500/tonne to around USD 16,000/tonne, and are likely to continue falling in Q1 2015. However, they will almost certainly remain substantially higher than the levels seen before November 2013, when prices typically remained under USD 10,000/tonne, due to the exit of several producers from the VB5 industry, leaving the Chinese market dominated by just three producers.
A more detailed trade analysis of the VB5 market, and the rest of China’s vitamins market, can be found in Vitamin Trade Flows in China. Published by China market intelligence firm CCM, the report contains comprehensive data and analysis of import and export trends in all the major vitamins markets, including vitamin A, B1, B2, B5, B6, B12, C, E, and other vitamins, both mixed and unmixed.
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service.
For more information, please visit http://www.cnchemicals.com
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This article was provided by CCM, a leading provider of data and business intelligence on China's chemicals market.
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