For the Quarter Ending September 2023 

North America

In the third quarter of 2023, Vitamin C prices in the United States experienced a notable decline, with CFR values dropping from $3750/mt to $3490/mt between July and September, signaling a discouraging conclusion to the quarter. The significant factors contributing to the substantial price decrease in the US vitamin C market were the unusually low demand from end-users and the ample supply available to meet the entire demand. Throughout the quarter, the Federal Reserve remained apprehensive about the development of the US economy, expressing concerns about potential increases in inflationary pressures. A report indicated that the US manufacturing sector contracted in July for the ninth consecutive month as companies downsized staff and output in response to a decline in new orders. The demand for nutraceuticals, particularly Vitamin C, from overseas markets declined significantly in the latter half of Q3 due to abundant supply from domestic suppliers. With assistance from the Federal Reserve, states participating in the Soft Landing Summer program discovered several promising economic indicators in the second half, suggesting that the US economy might be avoiding the expected recession.

Asia Pacific

Throughout the third quarter of 2023, Vitamin C prices in China exhibited a declining trend, with discussions indicating a drop from $2500/mt to $2220/mt FOB Shanghai between July and September. The world's second-largest economy grew less rapidly than expected in the first half of 2023 due to rising deflation, significant youth unemployment, and weak foreign demand. This trend persisted into the second half of the year, and the economy started the third quarter of 2023 on a downward trajectory. The primary reasons for this price reduction were extremely low end-user demand from the F&B, Pharma, and Nutra industries in both domestic and foreign markets, coupled with high stock availability from local suppliers. Despite the apparent causes, the arrival of China's golden week in September had minimal impact on the country's Vitamin C market, as its prices remained on the lower side. The export of nutraceuticals, especially Vitamin C, influenced both domestic and global markets in the final weeks of the quarter due to the strengthening Yuan and the declining value of the US dollar.

Get Real Time Prices of Vitamin C: https://www.chemanalyst.com/Pricing-data/vitamin-c-1258

Europe

Commencing the third quarter of 2023 with a price of $3300/mt in July, Vitamin C values in Germany's domestic market continued to decline towards the end of the third quarter, reaching $2850/mt CFR Hamburg in September. Excessive inventory levels, which met the overall demand that was also relatively low, led Vitamin C providers to reduce their quotations throughout the quarter. Industry analysts noted that problems in the German manufacturing sector persisted at the beginning of the third quarter. German manufacturers and distributors of nutraceuticals reported significant drops in production, new orders, and factory pricing, indicating a dire situation. The consistent and steep decline in new orders, the largest in more than three years, further contributed to the sales slump. Consumer hesitation led to decreasing stock levels over time, indicating weak demand for all goods, including nutraceuticals. The drop in demand was exacerbated by the geopolitical environment, tighter financial conditions, and economic uncertainty. Despite a slight increase in the composite score from 46.7 in August to 47.1 in September, PMI statistics indicated contraction in the private sector in the eurozone during this quarter. Additionally, the European Central Bank raised interest rates twice in the quarter.