Financial Services Association, July 23 (Reporter Luo Yichen) After a month of continuous gains, the vitamin market did not gradually subside as expected. Instead, the enthusiasm for hype grew stronger and higher, stimulated by multiple factors.

As a leading variety, Vitamin D3 has recently seen a new round of price jumps. The market price jumped from 180 yuan/kg to 190 yuan/kg last weekend to the current price of 215 yuan/kg - 240 yuan/kg. Industry analysts revealed that the direct factor that triggered the price change was that Tianxin Pharmaceutical (603235.SZ) called out a quote of 320/kg. This is also the first time that vitamin D3 manufacturers have made public offers since they collectively stopped reporting and signing contracts in early May this year.

The manufacturer's high offer quickly changed market expectations. “Traders expected Vitamin D3 to rise to 200 yuan/kg last week, but now there is a new change in expectations. Trader prices have risen to 215 yuan/kg to 240 yuan/kg. I feel like they are still bullish.” Deng Peng, feed additive analyst at Shanghai Steel Union, said.

According to reports, this round of vitamin D3 price increases were driven by supply-side contraction. Major manufacturers stopped reporting and suspending signings in May, and the prolonged supply contraction gradually overcame demand-side weakness. Since then, with continued hype from midstream traders, a wave of price increases for vitamin D3 broke out in mid-late June.

Following the hype from traders, the manufacturer took another step, which stimulated market sentiment immediately. A reporter from the Financial Services Association learned that although Tianxin Pharmaceutical gave a high price more to balance the low price orders signed earlier, that is, if customers want to fulfill the low price order of 58 yuan/kg, they must purchase a high-priced product of 320/kg. However, this move not only triggered traders to follow the trend and increase prices, but also temporarily disrupted market transactions. The difference in vitamin D3 price expectations between buyers and sellers further widened, resulting in few orders being sold in the market.

After vitamin D3, vitamin E is also preparing for a new round of price increases. Recently, the bullish sentiment in the vitamin E market has heated up, and the average transaction price has risen steadily to 90 yuan/kg to 95 yuan/kg. It is generally believed that the bullish sentiment is related to the suspension of production and maintenance by major manufacturers, but according to the relevant person in charge of Zhejiang Pharmaceutical, the company carries out routine shutdown and maintenance every year in July-August, which takes about two months. Therefore, it will reserve inventory in advance and will not affect product sales.

In fact, vitamin E manufacturers with sufficient stocks are seeking to increase prices and simultaneously reduce product supply. A CIFA reporter learned from the industry that the price of vitamin E manufacturers has risen to 120 yuan/kg to 125 yuan/kg, but it is still difficult for downstream traders to sign orders, and the manufacturer's move to “cover up the market and not sell” has further fueled the bullish sentiment.

The overall prices of the remaining varieties, such as vitamin A and vitamin C, remained stable. Regarding the differentiation performance of various varieties, there are opinions that although the main downstream application areas coincide, the supply pattern of each variety of vitamins is different. Judging from historical experience, 1-2 leading varieties will generally dominate the market, driving the overall vitamin market higher. At this stage, as the industry concentrates on production and maintenance, after the pressure on manufacturers' inventories is reduced, market expectations of tight supply may increase, and hype may rise further.