Vitamin C Prices Surge Over 40% in a Month, Manufacturers Limit Supply
The average price of Vitamin C (VC) reached 200,000 yuan per ton on July 24th, marking an increase of over 40% in just over a month. This price point, which surpassed 200,000 yuan per ton for the first time in over four years, saw a significant single-day jump of 20,000 yuan on July 23rd. The surge in VC prices has stimulated a substantial rise in the VC sector of the A-share market, with companies like Fushi Co., Ltd. experiencing their stock prices hitting the daily limit on July 23rd. A representative from an electrolyte company in Central China reported a noticeable tightening of supply, stating that most VC manufacturers are now limiting deliveries and are no longer fulfilling orders based on demand. The source further indicated that VC producers are currently in a strong negotiating position, with some threatening to halt shipments if payments are even one day overdue.
The recent sharp increase in Vitamin C prices, exceeding 40% in just over a month and breaking a four-year record, suggests a significant supply-demand imbalance. Manufacturers' implementation of limited supply and strict payment terms indicates a strategic response to heightened market power, potentially driven by factors such as production constraints, increased downstream demand, or inventory management strategies. This market dynamic creates upward price pressure and could influence investment decisions in related sectors. Investors and downstream industries will need to monitor production capacity, raw material costs, and global demand trends to anticipate future price movements and supply stability within the Vitamin C market.
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