LONDON, April 13, 2016 /PRNewswire/ -- After the Spring Festival, the prices of vitamins increased in the domestic market, which had attracted attention within the industry.
Besides the fact that the environmental pressure had led to intense supply like vitamin B1 (VB1), the price controls from some leading vitamin enterprises became the most important reason for the increasing prices of vitamins, such as vitamin A (VA), vitamin B2 (VB2) and vitamin B5 (VB5).
After all, the rising quotations and even the suspension of quotations from the major suppliers were easy to tense the supply and demand within the whole industry.
Moreover, driven by the high profits, the traders tended to follow the trend to increase the prices. Of course, there is a high risk for the price to plunge with the soaring prices caused by human factors like what happened to vitamin B9 (VB9) before. Currently, prices of VB1 and VB5 seem to on the course to rise rapidly. Insiders predicted that the manufacturers would also increase the prices of vitamin E (VE) and vitamin D3 (VD3) which are in the price bottom.
The price trend of vitamins is related to the performance of domestic vitamin enterprises. As of the end of Feb. 2016, several listed vitamin enterprises released their earnings preannouncements. Some performed well while some did not. Brother Enterprises Holding Co., Ltd. (Brother Enterprises) doubled its net profit in 2015 thanks to the increasing price of VB1; Xiamen Kingdomway Group Co., Ltd. (Kingdomway) had its net profit rapidly decreased in 2015 due to the low price of vitamin A (VA) and coenzyme Q10; The net profit in Zhejiang Garden Biochemical High-tech Stock Co., Ltd. (Garden Biochemical) also plunged because of the falling price of VD3. As one of the major vitamin C (VC) manufacturers, Northeast Pharmaceutical Group Co., Ltd. (NEPG) experienced heavy losses in 2015.
Different enterprises had different development strategies. Kingdomway planned to expand the downstream retailing market of health-care products; North China Pharmaceutical Co., Ltd. (NCPC) put its effort in developing the formulations and suspended the VC production; NEPG even bought financial products to deal with the deficit.
Domestic food industry is entering into rapid-transformation period. The demand for healthy and nutritious products is growing. The R&D and innovation capability of healthy and nutritious products will determine the development outcomes of enterprises.
In 2015, VC market price remains low, but it is unlikely to rise. It's estimated that VC price will maintain stable or edge down at the beginning of 2016, under the background of serious overcapacity.
Due to the intensive production, massive imported meats and strengthened industry supervision, large amount of small feed manufacturers withdrew from the market, so the total number of Chinese feed manufacturers is decreasing year by year.
In 2015, China's pharmaceutical industry experienced a slowdown in its growth, which can be attributed to the increasingly rigid governmental supervision and more and more fierce competition. However, a slowdown in growth doesn't indicate industry decline, but it is an opportunity of transformation and upgrading for the overall pharmaceutical industry instead.
At then end of Dec. 2015, a strategic partnership agreement was signed between CSPC and the Xingtai municipal government Hebei Province. They planned to build an important bio-pharmaceutical base in Xingtai City for CSPC in three to five years, meanwhile this base will contribute to Xingtai's economic development.
Second Pharma gained the pharmaceutical trading license for nicotinamide API, which was issued by Taiwan's Food and Drug Administration of the Sanitation and Welfare Department. This license allows its sales in Taiwan and exerts a positive impact on the company's future development.
Garden Bio-chemical recorded a sharp fall in financial performance in 2015, negatively impacted by sluggish VD3 markets in home and abroad and cholesterol production shutdown & upgrading.
In Nov. 2015, China's export volume of VB12 and its derivatives soared month on month, mainly because a continual fall of domestic VB12 price stimulated foreign clients' desire to purchase.
VB2 price is likely to rise in Q1 2016, which would be a continuation of the price trend in Q4 2015. This is due to the declining supply.
In Jan. 2016, the supply of spot VA is tight and the quotations of VA from distributors are high. It's estimated that VA price will be on the rise.
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