Several factors have affected the cost of raw materials. Oil’s low prices have reduced the starting material costs of some products, while overall, the devaluation of Chinese currency has resulted in lower exporting costs. Surplus products, including vitamin C and Taurine are currently priced low. The overall economic impact of China’s 2015 Environmental Protection Law could result in short supply and increased costs of products as manufacturers will have to adjust production to reduce emissions.
The market update is categorized by products that will experience price increases, decreases, or are expected to remain stable.
PRODUCTS WITH PRICE INCREASES
Hydrolyzed L-Leucine manufacturers adjusted prices to stay competitive with the fermented variety. However, with fermentation manufacturers’ prices bottoming out, hydrolyzed manufacturers may increase prices a dollar or two.
The engineering behind BCAA Instant formula has driven the cost of this product down. With its popularity growing and the cost of L-Leucine, L-Isoleucine, and L-Valine at low levels, now is the time to purchase. The prices will slightly increase within 6 months.
Supply cannot meet demand; prices will slightly increase.
Supply is short due to major factory reduced output in 2014. Prices increased, but we expect the situation will become stable starting in the second quarter.
PRODUCTS EXPECTED TO REMAIN STABLE
Ascorbic Acid USP/DC97
Prices slightly increased before stabilizing. Although the current vitamin C supply is abundant, there will be changes in the coming months. Factors including the new pollution control laws, higher water costs, and possible factory relocations should be monitored.
Glucosamine HCL /2KCL
Surplus supply with historically low prices.
Abundant supply, stable prices.
Consistent supply currently at low prices, with an expected price increase within a few months.
Reliable supply, currently low pricing. L-Valine prices will increase within a few months.
Prices and supply are stable, and expected to remain consistent.
Prices and supply are and will remain stable.
Price and supply remain stable.
The production of fermented L-Alanine and low oil prices have resulted in lower cost of starting material, consequently resulting in low L-Alanine prices.
Prices are currently at historically low levels due to oversupply from new factories. It’s a good time to secure inventory with blanket orders.
Prices and supply are stable; expected to maintain stability for the next six months. Sucralose Surplus supply with historically low prices.
Currently the focus is on the feed grade, which is approaching a stable price. This impacts the wait time for food grade, which is about 1-2 months.
PRODUCTS WITH PRICE DECREASES
Supply is strong, and with the low cost of starting material, prices will decrease.
Many buyers were deterred by sharp price increases from Chinese manufacturers, and sought out alternative sources. Prices are expected to drop to gain market share.
A strong supply combined with low prices will encourage more formulation uses.
Base prices will continue to decrease as the supply is abundant and price competition grows.
New manufacturing technologies will result in lower cost starting materials, resulting in lower costs of finished product.