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MARKET TRENDS

MARKET

UPDATE SPRING 2020

by Tony Xue, General Manager, ingredientsonline.com China

as of 2/20/20

CORONAVIRUS OUTBREAK

THE TRADE WAR

At the time of this report, the coronavirus outbreak in China is still the major issue facing supply. The epicenter of the virus in Wuhan City and Hubei Province is a crucial location where many products in our industry — such as L-cysteine, Taurine and Glucosamine — are produced.

The first phase agreement has been signed between China and the U.S. So far, two section 301 tariffs have decreased from 15% to 7.5% – good news for buyers and sellers.

Transportation and production have been delayed nationwide due to the Chinese Spring Festival, and citizens have been advised to stay at home in hopes of containing the virus. It is predicted the situation will get better this spring, but summer seems more realistic.

INGREDIENT MARKET REPORT 5-HYDROXYTRYPTOPHAN (5-HTP) Supply is still low while the price is high. This trend may last for months due to the shortage of the starting material Griffonia Simplicifolia. ALPHA LIPOIC ACID Price and supply are stable. The Fushilai factory is running well and fulfilling blanket orders until April. ASCORBIC ACID In February, price was on the rise by

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INGREDIENTSONLINE .COM™ • SPRING 2020

$0.20/kg and the export quantity was down due to transportation issues. The same is expected for March as factories try and recover production. BETA GLUCAN Supply and price are stable. BETA-NICOTINAMIDE MONONUCLEOTIDE (NMN) This is one of the hot, high-value products that is gaining popularity in the U.S. and other countries as people attach more importance to

immune support. BETAINE ANHYDROUS Price is currently stable, but there may be delays in Q1 due to transportation issues. BIOTIN Most factories have not resumed production yet and are selling stock that could cause shortages in the market soon. BREWER’S YEAST POWDER Price and supply are stable. Although some


M A R K E T U P DAT E

factories are in Hubei, they were able to move production to other locations to hold over supply. CALCIUM/MAGNESIUM/POTASSIUM/ SODIUM BETA-HYDROXYBUTYRATE (BHB) Price is currently stable. Some new factories have begun production for the first time due to the demand from last year, so supply is ample with most factories selling their current stock.

produced with existing stock. CREATINE MONO Factories have resumed production and output appears stable. When transportation is back to normal in approximately one month, supply and price will stabilize. CURCUMIN POWDER 95% Prices are flat now, and factories from both China and India are trying to sell their current stock.

CHONDROITIN SULFATE Most factories have not opened yet and are selling their current stock. Due to the coronavirus situation, the starting material factories (feed factories) have also not yet opened. It is expected there might be some shortage in supply and prices will increase in the coming months, but eventually it will stabilize as demand becomes more stable.

DIINDOLYLMETHANE/MELATONIN Price will be on the rise for two to three months due to pollution control. Availability will be very limited from now until April.

COENZYME Q10 (COQ10) Supply is tight due to a shutdown in Inner Mongolia and there may be further delays due to the coronavirus. The lower percentage material is still able to be

GLUCOSAMINE The factory in Wuhan has stopped quoting prices and is waiting for the government’s permission to reopen.

GAMMA-AMINOBUTYRIC ACID (GABA) Production is normal and not affected by the coronavirus. Supply and price are both stable.

GLUTATHIONE The factory has resumed production, but demand keeps increasing, so there may be gaps between supply and demand from time to time. GREEN COFFEE BEAN EXTRACT Price has decreased slightly. The export from China is low, but it is on the rise from India, so stock in the U.S. is ample for buyers. INSTANT LEUCINE/INSTANTIZED BRANCH CHAIN AMINO ACIDS (IBCAA)/ L-LEUCINE BCAA factories have started production, but starting materials are hard to get. Price has been increasing due to the uncertainty of Leucine caused by the coronavirus in the Hubei Province. L-CARNITINE Supply will remain tight for 2020 due to pollution control and availability already being low. L-GLUTAMINE/L-ISOLEUCINE/L-VALINE Neither Fufeng nor Meihua factories have (Continued on next page)

INGREDIENTSONLINE .COM™ • SPRING 2020

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M A R K E T U P DAT E

Shandong Jincheng Bio-pharmaceutical Co., Ltd is a publicly listed company in China and is honored as a National High-New Technology Enterprise. Main products are manufactured by microbial fermentation technology and advanced biological extraction and purification technology.

MAIN PRODUCTS:

NEW PRODUCTS:

• L-Glutathione Reduced • S-Adenosyl-L-Methionine (SAMe) • Ademetionine Disulfate Tosylate • Ademetionine 1,4-butanedisulfonate

• AA2G • L-Alanyl • L-Hydroxyproline

• Pyrroloquinoline Quinine Disodium Salt (PQQ) α-Ketoglutaric Acid series of products

Jincheng Pharm holds GMP, Kosher and Halal certificates.

Glutathione has DMF registration in Japan, Korea and India.

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Shaanxi Jianhe Bio-Technology Co., Ltd

• Alpha GPC

• Beta Glucan

• Diindolylmethane

• Indole-3-Carbinol

• Isoflavones HPLC

• Kudzu Root 40%

resumed production. Price increased slightly compared with before the Spring Festival; however, the factories are not near Wuhan and should be able to offer enough supply in the coming months. L-LYSINE/L-THREONINE Price increased by 10-15% due to the coronavirus. Production and demand are currently very unstable in the feed industry. L-THEANINE It is expected price will remain stable for the first half of the year due to new factories’ output. MEDIUM CHAIN TRIGLYCERIDES (MCT) Price and supply are stable. The major factories have resumed production; however, transportation is a challenge due to the shortage of delivery drivers. METHYLSULFONYLMETHANE (MSM) The starting material is produced in Wuhan, so there may be a supply issue that gets worse in the coming months. There was also an explosion that took place close to the factory, so the government is monitoring the situation for safety concerns. It is expected price will be high for at least the first half of 2020. MICROCRYSTALLINE CELLULOSE (MCC)/SILICIFIED MICROCRYSTALLINE CELLULOSE (SMCC) The market is stable, and stock is ample. Some factories in China may profit more from the production of medical equipment due to the coronavirus situation. MONK FRUIT (LUO HAN GUO) EXTRACT The regular-grade price is stable, but the organic-grade price is on the rise due to the quality of the starting material. N-ACETYL D-GLUCOSAMINE Price is stable, and the factory is selling stock now. Production has not returned to normal, and transportation to the seaport in China for shipments is also a challenge. N-ACETYL L-CYSTEINE/N-ACETYL L-TYROSINE/L-TYROSINE The starting material factories and major factories are in Wuhan, so prices have increased due to the concern over the coronavirus. There is still some stock available, but price is expected to remain high for the first half of 2020.

• Melatonin • Olive Leaf P.E. 10%/20%/40% Oleuropein • Pine Bark Extract 95% (PROAN) • Policosanol 99% min. (Octacosanol 60%) • Pomegranate P.E. 50% Polyphenols • Quercetin Dihydrate 98%

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INGREDIENTSONLINE .COM™ • SPRING 2020

NATTOKINASE/VITAMIN K2 (VK2) The factory has resumed production and supply is getting better with stable pricing. Due to the shortage from last year, the factory has increased output and it is expected supply and price should remain stable or improve in 2020. NATURAL CAFFEINE The current supply is all from India, so we suggest customers place blanket orders on large quantities to avoid the long lead time. ORGANIC REISHI PRODUCTS Price is stable, and customers are trying to stock as much as possible due to concerns over the coronavirus. PHOSPHATIDYL SERINE Price and supply are currently stable. The tariff has not been


A R K E T U P DAT E JIANGYIN MHUACHANG Food Additive Co., Ltd.

removed, but may be in the coming months, so price could improve. PSYLLIUM HUSK Price fluctuates depending on the harvest and shipped quantity from India. We suggest customers stock more to avoid any shortages. SODIUM HYALURONATE Supply and price are stable, and there may be some delays in transportation, but that is not a big concern.

FACTORY-DIRECT

SORBITOL/XYLITOL (SUGAR ALCOHOLS) Most factories are outside Wuhan and the coronavirus impact is limited. The price quote has not changed too much compared with before the Spring Festival. SOY PROTEIN Production is normal and the impact from the coronavirus is limited. The tariff was removed on Feb. 14, so price remains stable with the only challenge being transportation. SPIRULINA Production is planned in April because of its seasonal features. Supply is currently a little tight and price should decrease slightly following the tariff adjustment. TAURINE The two major factories are in Hubei, so supply is very tight. Price will remain strong and the concern for Taurine will last the longest among all ingredients.

TRIBULUS EXTRACT There might be a temporary shortage due to transportation issues, but supply should quickly return to normal. VITAMIN B Vitamin B5 supply and price were already very tight and now the supply issue is even worse, so most factories have stopped quoting. For Vitamin B1 and B6, most factories have announced a delay in production recovery and price is increasing slightly for now. Price is stable for Vitamin B12. Due to its high value, air shipment is usually utilized, and lead time is not affected much. VITAMIN E Price increased fast due to the coronavirus.

BE ENERGIZED

2,500 square meter factory Meets the sterile requirement of 100,000 levels GMP standard ISO9001, ISO22000, Kosher and Halal certified

Founded in 2007, Jiangyin Huachang Food Additive Co., Ltd. is located in the center of the Yangtze Delta Economical Zone.

SHOP NOW at huachang.ingredientsonline.com

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ingredientsonline.com™ Market Trends | Spring 2020  

ingredientsonline.com™ Market Trends | Spring 2020