Vitamin B1 Market Analysis in May, 2020

Market demand is dismal, domestic VB1 prices fall in May

1.Market review last month

After the second-quarter consumption of foreign customers was concentrated in February-February 2020, demand in China’s domestic vitamin market began to weaken in April, and the VB1 market price also slowly decreased. Subsequently, in May, brothers and others began to recover Supply, in the case of no reduction in production in Central China and Tianxin, the situation of oversupply caused the VB1 market price to fall further. As can be seen from the figure below, the average market price of VB1 MONO fell from 31 USD/KG at the beginning of May to 26 at the end of May USD/KG, a drop of about 16%.

2．the current market situation

Due to the continued epidemic situation in foreign countries, customers in most regions have not yet fully resumed construction. The vitamin stocks in their first quarter may be delayed for 3 months, and VB1 market demand will be delayed. At the same time, all domestic factories have resumed normal operations, and the situation of oversupply may cause the price of the VB1 market to continue to fall. In addition, from the price trend of VB1 MONO in 2020, the price of VB1 has not reached the normal low level. Therefore, the overall atmosphere of the domestic VB1 market is still bearish.

3. ECHEMI Forecast

Judging from the current oversupply of domestic and foreign VB1 markets, the short-term domestic VB1 market prices are still going down. However, as can be seen from the above chart, the price trend of the subsequent VB1 MONO will increasingly approach historical lows, and the downside is limited. VB1 MONO's subsequent decline may slow to some extent.