China Post Securities: Vitamins Launch Price Increase Channel, Potential for Significant Gains Ahead

China Postal Securities: Vitamin Raw Material Prices Enter Price Increase Channel, Potential for Significant Upside in the Future

Caixin, March 15 — China Postal Securities pointed out that vitamin raw material prices were at historically low levels before the recent price increases. The upstream chemical raw material price hikes and rising oil transportation costs have strongly stimulated industry-controlled production and price increases. Vitamins, mainly used as feed additives, have a very low cost proportion and are less sensitive to price changes downstream. Price hikes are smooth and have significant room for further increases. Driven by multiple factors, vitamins are just beginning to enter a price increase channel. Based on historical experience, there is considerable potential for future growth.

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