This week's price trends from Glowlit - May 25th 2020
May 25, 2020
Author: Guy Soreq
Producing 1 ton of Vitamin K3 MSB generates 20 tons of chromium powder tanning agent, which is used as a tanning agent by the fashion and car industries. These industries have suffered in the wake of COVID-19. Since the cost to contain and dispose of excess chromium powder is significant, producers have responded by reducing the production of K3 to contain the chromium powder output. The reduction in production capacity has placed further upward pressure on the price of K3.
Producers of Biotin are racing to forward buy potassium thioacetate, the key raw material of Biotin. Some are even purchasing 2 years in advance. However, this disruption to the market may be limited since not all producers require potassium thioacetate. Environmental regulations are also impacting suppliers, while an ongoing patent lawsuit is being waged around biotin production. There is a great deal of uncertainty given the current state of affairs, though overcoming these constraints could open the market.