April 6, 2017
Vitamin C prices approaches seven year high in China
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Vitamin C prices soared to levels unseen since June 2010, surging 30% after the Chinese New Year holidays.
The industry has undergone a round of restructuring over the past several years, with producers such as Huabei Pharmeceutical quitting and introducing new comers like Shandong Tianli Pharmeceutical. Currently, the production volume of China's vitamin C industry is about 155,000 tonnes.
The recent round of rally in the vitamin C market is the result of strict pollution controls in Hebei and Shandong provinces. Tight availability, coupled with growing aqua feed demand, should continue to push up the prices of vitamin C in the coming period.
However, smaller producers, which have halted production due to strong competition over the past few years, may resume production as prices climb further. This can release another 40,000 tonnes of the product into the market, hence limiting the price hikes.
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