Vitamin B prices superimposed when the price is rising into the channel

Business Club on May 31 hearing recent domestic prices of vitamin products have become increasingly rampant trend, the small variety of vitamin B prices also led to a modest increase along the way. People in the industry generally believe that vitamin B products are entering a price increase channel due to a combination of various factors such as a better export situation, limited power supply in some areas, rising raw materials, and increased environmental pressure.

The near end of digestion inventory phase

“At present, the price increase of the entire manufacturing industry is a major trend, and the main factor affecting the price of vitamin B products is the relationship between market supply and demand,” said Wu Huifang, chief researcher at HealthNet.

Judging the price trend of export-oriented vitamin B varieties, domestic production and export situation are unavoidable considerations. Since last year, the export of vitamin B products in China has been rising. In December of last year, the export volume of vitamin B2 in China was 165 tons, which was a 5.8% month-on-month increase; the export volume of vitamin B5 in the month was 772 tons, which was a 13.0% increase from the previous month. Export data for January showed that the recovery of the major vitamin B export market continued. In January of this year, vitamin B5 exports were 898 tons, up 89% year-on-year, exports amounted to 5.97 million US dollars, up 82% year-on-year; vitamin B2 exports were 234 tons, up 17% year-on-year, and exports were 5.72 million US dollars, up 6 percent year-on-year. %.

Industry analysts pointed out that with the rapid growth of exports, the consumption of vitamin B stocks will be caused, and now has reached the peak of summer electricity consumption, and producers in some areas are facing power restrictions and thus limiting production. This supply and demand He must further push up the price of the product. Many dealers have said that the initial inventory will be sold, began to comply with the manufacturer's price increases and stocking.

It is understood that vitamin B2 (domestic, 80%) price in April is 140 yuan / kg, vitamin B5 (domestic, 98%) April price of 60 yuan / kg. In the first week of May, vitamin B2 market price rose from 135 yuan to 143 yuan, an increase of 6%; vitamin B6 market price rose from 132 yuan to 140 yuan, an increase of 6%.

Some analysts pointed out that the price of vitamin B2 and vitamin B5 has been low for a long time because of the competition among major manufacturers, and factors such as the exchange rate, corn prices, and rising labor costs have caused many companies in the industry to break even. The price of these two varieties in 2011 may be driven by cost.

However, the more sober view is that vitamin B2 and vitamin B5 have relatively small market capacity, and the overall production capacity is still excessive. There are still many domestic production companies. Major manufacturers are still fighting for market share. Therefore, the room for growth remains to be seen. It is expected that the increase will be more moderate.

Price increase superimposed

"There are too many reasons for price increases." Talking about the reasons for the recent price increase of vitamin products, many industry insiders said. In some regions, the impact of power supply restrictions, better export conditions, rising raw materials, and increased pressure on the environment have all contributed to the price increase of vitamin products including vitamin B.

In the eyes of people in the industry, raw material prices in the context of inflation are the direct drivers of rising vitamin prices in the current round. The latest report of the US Department of Agriculture predicts that global corn demand will increase by 26.63 million tons from 2010 to 2011, while output will only increase by 2.51 million tons, and supply will tend to be tight. It is understood that corn starch prices rose by 100 yuan per ton before and after the "May 1" holiday this year, setting a new high of 2,300 yuan/ton during the year.

In addition, due to the earthquake in Japan, some Japanese pharmaceutical companies stopped production. Some of them involved in the production of vitamin raw materials and intermediates, such as Japan's No. 1 Pharma, which produces vitamin B5. This has, to a certain extent, pushed up the price of vitamin B related products in the international market.

It is worth noting that the "butterfly effect" brought about by the price increase of foreign producers of vitamin B can not be ignored. On March 24th this year, DSM announced that it will increase the price of vitamin products globally, and all new businesses will increase their vitamin B2 and vitamin B6 prices by 15%. The next day, Guangji Pharmaceutical also followed suit to raise 80% of vitamin B2 from 135 yuan to 140 yuan.

“The situation and mentality of domestic producers to take the opportunity to raise prices are all there, and any brainy manufacturer will not miss such price increase opportunities.” Wu Huifang said that when the producer is in a relatively stable state and there is no excessive number of new entrants. When the market demand is in a period of strong growth, the objective conditions for price increases are one by one.