While the export volume of vitamin B1 dropped in October 2016, the volume of vitamin B6 stayed pretty much the same. The total value, however, has shown an increase for both vitamins. The reason for this trend is the still remaining high domestic price of them.
The export volume of vitamin B1 in China went down in volume year on year and month on month in October 2016. The total amount, according to China Customs, is 455.32 tonnes. However, the export value still could list an increase of 36.43% year on year in October. This was main due to the remarkable price increase of 44.14% year on year, according to Tranalysis
Monthly market price of 98% feed grade vitamin B1 in China, Jan. 2015-Dec. 2016
The price increase is described by CCM with the high market concentration and tight supply. Three companies in China nearly dominate the market and have therefore the power to quote the overall market price of vitamin B1 in China.
The strengthened environmental protection efforts of China’s government furthermore leading to reduced productions of many enterprises in several industries, including the pharmaceutical industry. The production cuts affect not only the production of vitamin B1 itself, but also the raw materials of it, leading to the one hand of a tight supply of vitamin B1, and on the other hand to a more expensive production. Both factors are elevating the price of vitamin B1 in China, October 2016.
Vitamin B1, also called Thiamine, is mainly found in food like cereal grains, beans, nuts, and meat. This vitamin is mainly famous for helping metabolic disorders, thiamine deficiency, and brain disorder.
Vitamin B6 export in China showed a minimal decrease in volume of 0.62% year on year in October 2016. The total amount was 400.29 tonnes. Nevertheless, the total export value showed a significant increase of 29.98% YoY, mainly supported by the also increasing price of 30.79% YoY.
Monthly market price of 98% feed grade vitamin B6 in China, Jan. 2015-Dec. 2016
According to CCM, the price rises are the result of the domestic price boom of vitamin B6. Even there have been some fluctuations of the price in the first half of 2016 with even an overall decline trend, the second half showed significant price rises again, mainly due to production cuts in the term of maintenance.
This led to the export price increase of 41.41% year on year from January to October 2016, and the export value increase of 52.72% YoY in the same period.
Similar to the production of vitamin B1, in China the production of vitamin B6 is highly concentrated on a few big players, dominating the market. According to CCM, the biggest manufacturer, Jiangxi Tianxi, with an annual production capacity of 4,000 tonnes is responsible for more than 60% of the global sales in China. This power gives the enterprise an important voice for ruling the market price of vitamin B6. The price rise in October though is especially caused by the production cut off several enterprises for maintenance. Even the picking up of production in October could not ease the tight supply of the production reduction and lead to an increased export price.
Vitamin B6 is also called pyridoxine and is known for helping to support the adrenal function, maintain a healthy nervous system, and is needed for basic metabolic processes.
Tranalysis is an intelligence and analysis provider on import/export data covering agriculture, chemicals and life science industries in China. Tranalysis, founded in 2001, provides users not only large amount of import/export data in China, but also analysis to help monitor the market trends. Our clients include Monsanto, BASF, Syngenta, and SinoChem.