As we are all well aware, in September, a 10% tariff was implemented on some raw materials from China. The U.S. government’s current administration is also planning additional tariffs on a much larger list of ingredients at the rate of 25% beginning Jan. 1, 2019. However, negotiations are ongoing between the U.S. and China, and things are changing daily.

The Chinese government is taking actions like increasing the tax rebate to reduce the impact of the trade war, aiming to maintain the competitive edge of Chinese products in the U.S. Additionally, some Chinese factories are considering moving their production out of the additional duty fee issues. We also closely monitor materials produced in India, Thailand, Indonesia and Europe. We are actively sourcing materials from around the world, including ingredients of U.S. origin with the goal of providing supply-chain teams choices, including quality and consistency.

Market Trends content was updated on Nov. 28 prior to the printing of this winter issue.

B12

Supply and market are still crazy for B12, including Cyanocobalamin and Methylcobalamin.

The factory output is fully booked until early next year, and the major issue is still pollution control and the factories limited output.

BCAA

This product is still on the high level but this status may be changed in Q1 of 2019 because Meihua started to produce L-Leucine fermentation.

The improved supply of Leucine will lead to a stable market of BCAA or Leucine instant and Leucine fermentation.

Betaine Anhydrous/Betaine HCl

Price increased a little but remains stable, and the supply is extremely tight because of the great demand from the market. It seems that distributors are afraid of a new duty fee increase and tried to stock some by the end of this year

Ca/Mg/Na BHB

Demand kept stable from Q1 to Q3, however, it went down since the end of Q3. This product is on the list of additional tariffs.

Price increased a little but remains stable, and the supply is extremely tight because of the great demand from the market. It seems that distributors are afraid of a new duty fee increase and tried to stock some by the end of this year

Ca/Mg Citrate

Price remains steady for now, and Ca Citrate from China has been replaced by material from India due to the anti-dumping issue.

Caffeine Synthetic/Theobromine

Price is presently stable.

Calcium/Magnesium/Manganese Sodium/Potassium/Zinc Gluconate

Due to the anti-dumping issue and being on the list of additional tariffs, China stopped exporting this series of products to the U.S. and the local price remains stable.

Calcium D-Pantothenate

Step by step price is coming back from being at a low level and remains on the rise.

Choline Bitartrate/Choline Chloride

The market, including price and supply, are stable.

Chondroitin

The current price continues to come down and almost reached the bottom. We consider this change as a normal circle since the price was very high last year to early this year.

There is a trend of using more Collagen II in the formula and less Chondroitin to reduce the cost while delivering the same joint health results.

Citric Acid Anhydrous

Sunshine has become the largest supplier in the U.S., and this producer in Thailand has no issues with duty fees and will continue to enlarge their U.S. market share continuously over the next few years.

CLA Oil/CLA Powder

Due to domestic demand growing, which causes tight supply, price is currently increasing.

Coenzyme Q10

Major factories are locked with huge U.S. buyers, and the market is quite stable for spot purchases.

Collagen

Price is rising mainly due to the shortage of raw materials while demand is increasing. Type I and III are for the skin and Type II is for joints. Regardless of starting material sources like fish, chicken, bovine, etc., the demand for all kinds are on a rise.

Creatine Monohydrate

One of the leading factories stopped production in Q3 and the new factory in the new location will start production after one year. However, other suppliers have the capability to make up the vacancies. The market will not be impacted too much but will be stable in Q1 of 2019.

Folic Acid

Price in the market is coming down, and some factories have stopped production due to pollution control, so we see there will be fewer factories producing it.

GABA

Currently price is stable but continues to rise little by little due to the starting material and labor cost.

Glucosamine

A lack of raw material and strict environmental issues caused the price to increase. Tight supply this winter and the situation of short supply will at least last after the Spring Festival.

Grape Seed Extract

Grape Seed Extract is still one of the hottest products during these years, and demand keeps increasing sharply. The production has been centralized to a few large-scale factories, and price remains stable.

Inositol

The market is bouncing back, and price has started to increase from October.

L-Arginine/L-Citrulline

The supply of raw material Arginine is stable. Even with it on the list of additional tariffs, the impact has not been felt until now but will definitely impact selling in the near future.

L-Carnitine

The raw material is stable, but the factories are still facing the great challenge of pollution control. Supply is tight, and price is currently stable at a high level.

L-Cysteine/L-Tyrosine

The market is currently stable.

L-Glutamine

Meihua is still the No. 1 producer of this product and continues to provide good quality and quantity to market. This position will not waver in the near future. The output is already booked for next year and if the duty fee stays at the current level, we think the price will keep stable.

L-Glutathione Reduced

A shortage of raw material has caused the short supply, and the price presently will remain at a high level.

L-Histidine Base/L-Histidine HCl

Supply is currently tight which may be caused by one of the suppliers stopping production for a long time. We will get the response from the market in Q1 of 2019 to see if they can provide the material in a timely manner.

L-Lysine/L-Tryptophan

Supply is stable.

Lutein

Demand in the market keeps increasing, and the price will rise step by step at the end of semester. It is also on the list of additional tariffs.

MSM

MSM is experiencing a shortage of supply. The production is limited due to pollution control especially in winter. Without a doubt, the price will be increasing in Q1.

Pyridoxine (B6)

As with Thiamine, the factories are back to production for one to two months and availability is improving compared with the same period of last year.

Riboflavin (B2)

Supply is tight for now, and the price is still bouncing back from being at a low level.

Sodium Hyaluronate

The market became soft from the end of Q3, and the price is steady now.

Spirulina

Supply and demand are balanced now. Due to the production cost and labor cost increase, the price increased a little.

Stevia

Over supply in the market caused the price to go down. The demand from the market is also shrinking.

Sucralose

The capacity of production from suppliers can meet the requirement, so now the price and supply remain steady.

Taurine

Price is stable but the production at factories is very tight. Even if it came up a little bit before, it will remain stable until early 2019.

Thiamine (B1)

Availability is improving in the market. Those factories who were shut down are now back to production. As mentioned in last report, the supply will be getting better from the end of September, and we see the market will not be as tight as it was last year.

Vitamin A/Vitamin D3

The major factories in China have stopped quotation due to a shortage of raw materials. In the winter time, challenges of pollution control and labor costs will keep the price at a high level for some time.

Vitamin C

The good news is that Vitamin C is not on the increased duty list. The prices are stable at low a level, and with new production in Ningxia Province and Anhui Province, the supply is in good shape. We think the price will remain stable at its current level and is not likely to increase in the next few months.

Vitamin E

Food grade and feed grade are both stable at a current level.

Xylitol/Xylitol DC

Price is currently stable but it will rise a little because of the pollution control during winter.