Around the world, Vitamin C is in short supply. Distributors fortunate enough to have stock are raising prices and allocating goods to the most urgent demand. Back in November, prices of vitamin C have increased by 200% in less than a month, with spot offers entered into Glowlit reaching double digits in USD.
Meanwhile, India is conducting an anti-dumping investigation on imports of vitamin C from China. The complaint was initiated by Bajaj Healthcare Limited and backed by Amoli Organics Pvt Ltd, Reckon Diagnostics Pvt Ltd, and SR Biochem. In September 2020, these companies argued that Chinese vitamin C dumping has led to a decline in local producers’ market share, profits, return on capital employed, and cash profits. Until today, only two Chinese vitamin C manufacturers have been named as interested parties in the dumping of material in India, CSPC Weisheng Pharmaceutical (SHIJIAZHUANG) Co., LTD & Shandong Luwei Pharmaceutical Co Ltd. The investigation will cover market activity from FY17 – FY20.
As the two countries battle for their share of the Indian market, the government of India may respond with tariffs raising the price of imported products (as they did in 1999 against Russia and the EU). Chinese manufacturers will need to find new channels globally which will cause the supply of Vitamin C to increase over demand in certain parts of the world. Though today we face a shortage, the tables are likely to turn. Buyers should consider this, and promote their potential to be long-term purchasers when negotiating with suppliers for hard to come byproducts today.