Carnitine prices in the North American region exhibited a depreciating market position throughout the first quarter of 2023. Prices decreased consistently during the quarter because of reducing raw material costs. The domestic and international markets decreased demand had a part in the unfavorable market situation. The accumulation of stocks brought on by the end-user sector's decreased demand forced the merchants to drop their quotations to destock and clear out the stock. Additionally, the fact that freight and transportation costs have significantly fallen has only contributed to the market's declining conditions. The market was also impacted by logistical problems and the ease of trade activity.
The prices of L-Carnitine in the APAC region demonstrated decelerating market situation throughout the first quarter of 2023. Towards the end of Q4 2022, the price of Carnitine was recorded at USD 22500/MT FOB Shanghai with an average quarterly declination of 13.21%. The prices depreciated continuously throughout the quarter with decreased raw material prices. Decreased demand from both the domestic as well as international market further supported the pessimistic market situation. This decreased demand from the end-user sector eventually resulted in stockpiling of inventories which compelled the merchants to lower their quotations to destock their inventories and clear out the stock. Also, merchants decided to roll back to pre-pandemic prices, which increased during the previous quarter.
Throughout the first quarter of 2023, L-Carnitine prices in the European region showed a slowing market position. Throughout the quarter, prices declined steadily due to falling raw material costs. Reduced demand from both the domestic and international markets contributed to the negative market environment. The merchants were forced to lower their quotations to destock their inventories and clear out the stock because of the amassing of inventories caused by the end-user sector's decreased demand. Also, as the freight and shipping charges decreased many folds, it further added to the depreciating market situation in the European region. Ease in trade activities and logistic issues also influenced the market.
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