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Established in 1998, China-based Zhejiang NHU is a world-leading company with various business portfolios, notably its focus on vitamins A and E. In this article we will have a look at the global vitamin A and E markets and try to put light on the position of NHU.


For vitamin A, there are six major suppliers in the world, with NHU maintaining a relatively high market share. Supply and demand in the vitamin A market have generally been stable.

In 2017, DSM's announcement of the extension of its shutdown and maintenance plans, BASF's announcement of its planned shutdown in the fourth quarter, and the tightening of China's environmental policies, all contributed to periods of market tension. Prices gradually increased. But the real change in market structure came when a fire broke out at BASF's Citral plant in Germany.

The October 31 incident continues to exert a significant impact on global supply of vitamin A. Citral is a key intermediate in the production of vitamin A. BASF is the world's largest producer of Citral, supplying vitamin A producers with this intermediate. Vitamin A producers who were affected by BASF's disrupted production include Adisseo, Xiamen Kingdomway and Zhejiang Medicine Co. (ZMC). About 40-45% of the world's vitamin A supply is being impacted. That said, NHU has its own Citral production so they are somewhat independent from BASF Citral.
 
The October 31 incident continues to exert a significant impact on global supply of vitamin A. Citral is a key intermediate in the production of vitamin A. BASF is the world's largest producer of Citral, supplying vitamin A producers with this intermediate. Vitamin A producers who were affected by BASF's disrupted production include Adisseo, Xiamen Kingdomway and Zhejiang Medicine Co. (ZMC). About 40-45% of the world's vitamin A supply is being impacted. That said, NHU has its own Citral production so they are somewhat independent from BASF Citral.

In the following weeks, to meet their vitamin A needs, premix producers worldwide would depend heavily on direct sales from NHU and DSM (60% for its own consumption) as well as a limited supply from ZMC. BASF had earlier reported that follow-up inspection, repair and restart of its Citral plant will take "several weeks". There are also unofficial reports that BASF's supply would only resume back to normal after March 2018.

Similarly, the incident at the BASF Citral plant affects the global vitamin E market.

From all data and analysis, NHU thinks that the market outlook for the global vitamin A and E markets for feed use would remain challenging at least until the second half of 2018. For food use, price would have affected by feed shortage and price increase. Against such challenges in the global vitamin A and E markets, based on its information, NHU is leveraging its many years of experience in the vitamins business, focusing on delivering value to its customers and business partners, while forging strong relations with them. These have all helped in contributing to a stable market supply as NHU maintains its lead in the global vitamins business.

Beyond its vitamins business, NHU is a relatively new entrant to the global methionine industry but is fast growing its footprint in the market. In fact, NHU is currently the only company which supplies a range of important vtamins (E, A, D3 and Biotin) and also one of the most important amino acids, methionine.
 

Zhejiang NHU Official Website: www.cnhu.com/en/
 

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