Who Is That Role to Resolve the Contradiction Between Supply and Demand of Vitamin D3?

Vitamin D3 is a nutrient necessary for normal calcification of bones in humans and animals, which is converted into an active form, 1,25-dihydroxyl, in order to play a physiological role, not directly working. It is widely used in feed additives, nutrition and health products, and medicine.

The current Vitamin D3 market price is 260 yuan per kilogram, and the price at the beginning of this year was 93 yuan per kilogram.

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The Epidemic Results in Insufficient Supply of Vitamin D3

Since the beginning of 2020, the price of Vitamin D3 has risen again. On the one hand, the current round of increase has been affected by the epidemic. On the other hand, the supply-end operating rate has declined. As the global epidemic situation has not yet been fully controlled, overseas Vitamin D3 construction continues to be affected.

There Is Still A Lot of Room for Development on the Vitamin D3 Downstream Demand

In the medical and health care market, Vitamin D3 is mainly used to make Vitamin supplements and other health care products and to make pharmaceutical preparations. Public information shows that more than 1 billion people worldwide lack Vitamin D3, with the theoretical demand for vitamin D3 of 1460 tons in the pharmaceutical industry. However, some of the population with insufficient cognition is located in countries and regions with relatively backward economies, and the actual demand must be significantly less than the theoretical demand.

The New National Standard Further Intensified the Contradiction Between Vitamin D3 Supply and Demand

On December 17, 2019, the State Administration of Market Supervision and Administration and the National Standardization Management Committee issued the national standard for feed additives Vitamin D3, which will be implemented from July 1, 2020. The new standard stipulates that the raw material for Vitamin D3 is only lanolin cholesterol, which limits the use of brainstem cholesterol.

For the industry, restricting the use of brainstem cholesterol, low-cost, low-quality cholesterol withdrawing from the market is conducive to maintaining the quality and safety of cholesterol and Vitamin D3 products, while reducing supply is conducive to optimizing the competitive landscape of the cholesterol industry. Due to the global epidemic and the withdrawal of animal brainstem cholesterol, the supply of cholesterol and downstream Vitamin D3 will gradually decrease. Vitamin D3 is expected to enter a cycle of high profitability and high prosperity under the optimized supply pattern.

89% Of the Downstream Applications Are Feed

89% of the downstream demand for Vitamin D3 is used for feed, with about 7-8 grams of Vitamin D3 added for each ton of full-price compound feed. As the volume of poultry supplements increases in the third and fourth quarters, downstream demand will continue to improve.

The current global feed-grade Vitamin D3 consumption is about 8,000 tons. At the same time, the annual demand for Vitamin D3 for feed is growing at 2%-3%. As Vitamins account for a very low proportion in feeds, a sharp increase in vitamin prices has little effect on downstream costs.

At present, the global production capacity of Vitamin D3 is about 11,000 tons, with more than 75% concentrated in China.

Before 2007, the global production of NF cholesterol was monopolized by three companies including DSM and Japan Refinery.

There are 7 major manufacturers of Vitamin D3 in the world, including Garden Biochemical, Hisound, Kingdomway and NHU in China, and the production capacity is mainly feed Vitamin D3. Foreign enterprises include DSM, BASF, and Fermenta, among them, garden biology is the industry leader.

At present, the only domestic enterprise capable of large-scale production of lanolin cholesterol is Garden Biochemical, with 80%-90% of the global lanolin cholesterol capacity. The implementation of the new national standard is expected to play a strong role in promoting the Vitamin D3 market of Garden Biochemical. Optimistic about Garden Biochemical, Kingdomway, Zhejiang Medicine, Jindawei Stock Market.

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