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[Introduction] BASF's supply cut caused vitamin price increases, and several A-share listed companies responded

China Fund News reporter heard

Due to the supply suspension by German chemical giant BASF, domestic vitamin prices continued to rise, causing investors to pay attention to the extent to which A-share listed companies are affected by the price increases, and whether the current production capacity can cope with the changes.

Recently, A-share listed companies such as Xinhecheng, By-Health, Huilong Holdings, Taiji Group, and Lisheng Pharmaceutical have responded to relevant questions one after another.

Pay attention to the impact of rising vitamin prices

Recently, investors have repeatedly asked A-share listed companies on interactive platforms: "Are vitamin product prices going to increase? Or are they going to be in sync with international quotations?"

Recently, Xinhecheng responded that the company will adopt flexible sales strategies based on market conditions and changes in customer demand to ensure the market competitiveness of its products and a good level of profitability.

By-Health responded that currently, the company's reserves of relevant raw materials are relatively sufficient and will not affect market supply and the company's normal operations in the short term.

Huayuan Bio responded that the price of the company's feed-grade vitamin D3 products will follow market trends.

On August 8, Baichuan Yingfu released news that mainstream manufacturers of vitamin A and vitamin E stopped signing and reporting in the domestic market, and most traders also stopped quoting. Data from third-party institutions showed that as of August 7, the market price of vitamin E was 142.5 yuan/kg, an increase of 49.2% compared with the end of July.

The sharp rise in domestic vitamin product prices in the short term was mainly due to the supply cut by BASF. BASF's Ludwigshafen plant is one of the world's major vitamin A and vitamin E production bases, but an explosion and fire occurred in late July.

BASF announced on its official website on August 7 that from now until further notice, the supply of some vitamin A, vitamin E, carotenoid products and some aroma raw materials products of BASF SE (and also on behalf of its affected affiliates) has been affected by force majeure.

Guosen Securities analyzed that the supply of BASF's related products is affected by force majeure factors, which will lead to a temporary tight supply in the global vitamin industry. The prices of vitamin A and vitamin E are expected to continue the recent upward trend.

Focus on production capacity and market share

Xinhecheng responded that currently, the company's annual production capacity of vitamin A equivalent to 500,000 IU is 8,000 tons, and the annual production capacity of vitamin E based on 50% powder is 60,000 tons. The market share will change according to market demand.

As for whether there is any intention to export vitamin E in large quantities in the near future, Xinhecheng said: "The company's export volume of VE will be determined in accordance with market demand."

Huilong Co., Ltd. responded that part of the company's meta-cresol products are used to produce intermediates of vitamin E, and the company currently has a meta-cresol production capacity of 10,000 tons/year.

Taiji Group responded that the vitamin products produced by the company's controlling subsidiary, Southwest Pharmaceutical Co., Ltd., include chewable vitamin C tablets, vitamin EC tablets, vitamin B complex tablets, vitamin B1 tablets, vitamin B2 tablets, vitamin C injection, vitamin B6 injection, vitamin B12 injection, etc.

Huayuan Bio responded that the company now has a small-scale production line for vitamin A. After the convertible bond-raised investment project for an annual output of 6,000 tons of vitamin A powder is completed, the production capacity will be further increased.

Lisheng Pharmaceutical responded that at present, the vitamin E soft capsules and other products produced by the company's subsidiary Tianjin Central Pharmaceutical Co., Ltd. can fully meet market demand with the current production capacity of the company and its subsidiaries.

It is reported that Lisheng Pharmaceutical produces vitamin products such as vitamin B1 tablets, vitamin B2 tablets, vitamin B6 tablets, vitamin B complex tablets, vitamin C tablets, etc., all of which are under the "Sanyu" brand, a time-honored Chinese brand.

Editor: Xiaomo

Audit: Wooden Fish

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