In the first quarter of 2023, Vitamin B1 Prices continued to decline as a result of the long-drawn-out turmoil in the U.S. domestic market, with CFR Los Angeles from January to March. Due to a halt in imports from China during the first week of January due to the Lunar New Year, several domestic retailers had to raise their price quotes to keep up with the ongoing demand. The tiebreakers, which included the crisis in Ukraine, rising U.S. inflation, and extreme weather, persisted in putting fragile supply chains in peril for most of the quarter. The U.S. supply chain gradually improved in the second half of 2023 as the economy recovered and the port of Los Angeles on the west coast significantly reduced ship backlogs. All U.S. supply chains experienced a price decline beginning in March, reducing inflationary pressures. The U.S. supply chains became adaptable because of weaker shipping demand brought on by slower consumer spending and a decline in manufacturing activity in March.
During Q1 of 2023, the domestic Vitamin B1 market in China displayed indications of fluctuation in pricing as FOB Shanghai discussed from $14600/M.T. to $14600/M.T. from January to March. Due to the shutdown of industrial facilities for the Lunar New Year during the first week of January, China's manufacturing sector experienced its slowest contraction in January and the lowest export orders ever. The market's possibilities of catching up to the significant gain recorded in some industries during the first half of Q1 grew due to the range of contradicting signals that Chinese merchants returning from the holiday had to contend with. The final month of the quarter saw local producers and suppliers fully meet all domestic demand thanks to ample stockpiles on hand.
The European Vitamin B1 market exhibited a steady trend in the first quarter of 2023, with CFR Hamburg. Despite rising energy costs and bottlenecks in the supply chain, Germany's industrial production barely increased in January. The issues with the situations in Russia and Ukraine, however, all continued to have a detrimental effect on output. Demand-wise, offtakes in the end-user industries continued to be favorable, while the pharmaceutical and nutraceutical industries continued to struggle due to the rising cost of raw materials and energy. Due to some breathing room, trade flows in Germany and the wider eurozone were stronger in the second part of Q1 2023, but this did not mean that market fundamentals had become balanced.
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