China ingredient market update: prices & supply

GWI provides first-hand information from its GWI Market Intelligence Team in China, which observes the market and analyzes data to offer transparent information about upcoming trends.

PRODUCTS EXPECTED TO EXPERIENCE A PRICE INCREASE:

Ascorbic Acid USP/DC97
The price is gradually increasing step by step. The oversupply the last few years has made Vitamin C producers lose money and manufacturers are now controlling the output closely, while recovering the price back to a slim profit level. Rumor has it, that two to three manufacturers will shut down production in the summer time. However, the supply seems to be secured through high inventory levels.

Choline
There is an increasing demand and the supply is tight. Since March, all manufacturers have been at full production and are fulfilling existing Purchase Orders. The DL-Bitartrate form continues to grow and there is also a growth uptrend on various other Choline products including Choline L-Bitarrate, Choline Coated and Choline Dihydrogen Citrate.

Glucosamine HCL/2KCL
The raw material supply is still a little bit tight and the Glucosamine HCL/2KCL market is strong. It is predicted that the price will remain stable with a slight increase over the next two to three months.

L-Tryptophan USP
The supply of L-Tryptophan feed grade is still very short, and the price has continued to go up about 20 percent since February 2014. It is predicted that the price will continue to go up over the next few months due to the raw material situation for L-Tryptophan.

Stevia P.E.
The supply has become tight and the price recently increased about 10 percent to 15 percent. The main reason for this change is the increase in cost for the raw material, dry stevia leaf, which has increase by about 30 percent. This increase is a result of the soft market during the past two to three years and fewer farmers are growing the starting material, which has resulted in a smaller harvest. We predict market price/supply will stay high over the coming months. GWI will gradually increase the price to give all our customers enough time to make adjustments.

PRODUCTS EXPECTED TO REMAIN STABLE:

Acetyl L-Carnitine HCL
The supply appears to be slightly tight this month. A possible reason for the tight supply is that a major manufacturer may stop their production line. The current market price still remains that same as last month. Should the manufacturer decide to stop its production, and current inventory decreases, the L-carnitine market may gradually change and the price go up.

Ascorbyl palmitate
The price and supply remain stable.

BCAA
The L-Leucine price remains at a high level due to the tight supply and caused a price increase for BCAA. Currently, the price for L-Leucine fermentation products is more competitive. However, it is expected that the price for L-Leucine will drop in the near future. The prices of L-Valine and LIsoleucine have been stable over the past few months and will remain stable over the couple of months. It is predicted that the BCAA price remains stable.

Betaine Anhydrous/HCL
The supply is adequate and the price remains stable. It is predicted that the situation will remain stable over the next few months. However, the price may decrease in the long run.

CoQ10 USP
The supply and demand is currently balanced in the market. One of the manufacturers in China will expand its production line this year to fulfill the increasing demand from the US market. It is therefore predicted that the price will remain stable over the next couple of months.

Creatine Monohydrate
There are observations of new manufacturers entering the Creatine production market. However, quality control is the key to stay competitive and past experience has shown that manufacturers need a large investment in equipment to fully meet the dietary supplement quality requirements (including color, mesh size, foreign matters and consistency). GWI will closely observe the development and continues to update you about the Creatine market situation.

GABA
Price and supply will remain stable over the upcoming months. Some insiders predict that one of the largest manufacturers may discontinue its GABA product line this year, which will lead to a price increase.

Glycerol Monostearate Powder
The supply is adequate while the price increased slightly due to raw material price changes (hardened oil and glycerin). It is predicted that the price will remain stable over the next few months.

L-Carnosine
Supply and price remains stable, which is predicted for the first half of 2014.

L-Citrulline/Citrulline Malate
Price remains stable at a low level, while the market demand is weak. The raw material price for LArginine base price also continues to decrease. Supply will remain adequate and it is predicted that the price will remain stable over the next one to two months.

L-Glutathione Reduced
Supply and price are expected to remain stable.

MSM
Price and supply are expected to remain stable. There might be a period of tight supply due to the limited output during The Chinese New Year, but it is predicted that supply, demand and price will remain stable over the next two to three months.

Phenibut HCL
Supply and price are expected to remain stable.

Sucralose
We currently find a soft market for this product due to oversupply. This situation is expected to remain the same over the second quarter.

Taurine
The supply is adequate while the price remains at a low level. This is a good time to lock in blanket orders with GWI.

Xylitol USP/DC
Price and supply are stable while the price remains at a low level. It is predicted, that the price and supply will remain stable over the upcoming months.

PRODUCTS EXPECTED TO EXPERIENCE A PRICE DECREASE:

L-Alanine
The supply remains adequate while the price is going down. In comparison to the same period of last year, the price has decreased by 15 percent. The price is predicted to remain stable or even decrease slightly more.

L-Glutamine FCC
The supply is adequate and the price is expected to decrease. Two of the largest Glutamine manufactures are currently competing for market share and pricing while a new manufacturer is expected to enter the market during April. It is predicted that the price will remain stable or even go down further over the following months.

Raspberry Ketone
The supply is adequate while market demand is showing a continuous decrease over the past months. It seems the Dr. Oz effect is fading. It is predicted that the price will continue to decrease slightly over the upcoming months while supply remains adequate.

Sodium Hyaluronate
We have observed a downward trend for the price due to a new manufacturer with large capacity that recently entered the market. This new manufacturer may change the industry structure permanently. It is currently predicted that the price will continue to go down.