Gee Lawson News

Market Update: Raw Materials from China

China has set the target to reduce the level of PM2.5 pollution by at least 15% in the 28 cities around the Beijing-Tianjin-Hebei region, and reduce the number of heavy smog days by at least 15%, between October 2017 and March 2018.

In Xingtai City, Hebei Province, an executive order has been issued to a total of 772 chemical and/or pharmaceutical factories requesting that they shut down production lines that use VOCs (Volatile Organic Compounds) from November 15, 2017 to March 15, 2018. The largest Vitamin B12 manufacturer is on the list. In Weifang City, Shandong Province, a similar executive order will shut down 95 factories that provide pharmaceutical raw materials during the same period, including the largest Inositol manufacturer.

 

Prices for vitamin C, B1, B2, B5, B6, D-Biotin, Inositol, Folic Acid, Cyanocobalamin and Methylcobalamin remain volatile with a tendency to increase as supply is getting tighter. Some factories are completely shut down while others are running at 50-60% capacity. For coenzyme Q10 the factories continue to raise spot prices. Amino acids obtained by hydrolysis will continue to face environmental protection pressure. With regard to herbal extracts, the market prices for resveratrol remain high and the supply tight due to inspections in Shandong Province. We suspect that some low price offers in the market might come from adulterated materials. Despite the good harvest, the price for citrus aurantium is increasing due to the investment of environmental protection facilities which causes rising production cost including raw materials.

 

Contact us for more information and to have an updated offer and availability on the raw materials currently affected.