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Why do prices of vitamin rise sharply

2018-04-27

Last September,the stoppage of production of the Germany BASF citral plant due to an explosion caused the shortage of raw materials for vitamin A and vitamin E.

In addition, superimposing domestic environmental pressure, vitamin A and vitamin E supply substantially reduce. Short-term gap is difficult to make up. These facts result in a substantial increase in product prices. According to institutional statistics, the prices of vitamin A  have risen continuously in recent days to 942 yuan/kg, and it is hopeful that the price of vitamin A will sprint once again in the near future. The prices of Vitamin E  also rise from the low 39 yuan/kg to about 100 yuan/kg.

According to the analysis, after several years of mergers and acquisitions and integration of international industries, the vitamin pharmaceutical raw materials industry has formed the three-polar production pattern of China, Germany BASF and the Netherlands DSM. Most of the subdivided varieties are concentrated in a few companies, forming an oligopoly structure. The downstream is dominated by feed (except for VC). Because vitamin additives account for a very small proportion of feed costs, customers are not sensitive to the price increase of vitamin products. Under the severe environmental protection policy, the raw material medicine industry is periodically weakened, and the high prices have become the new normal.

 

 

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