Price increases exceed 60%! The situation in the Middle East is "driving up" calcium pantothenate, which may benefit manufacturer performance

Source: International Financial News

The supply chain disruptions caused by the Middle East situation are ongoing. Recently, prices of Vitamin A (VA), Vitamin E (VE), and Calcium Pantothenate (VB5) have risen significantly, with some increases exceeding 50%.

According to the latest quotes on the Vitamin Today platform, from March 5 to 16, VE prices rose from 67 yuan/kg to 82 yuan/kg, an increase of 53.2%; VA prices increased from around 62 yuan/kg to about 95 yuan/kg, a rise of 22.4%; Calcium Pantothenate prices went from 40 yuan/kg to 65 yuan/kg, up 62.5%.

Recent Price Increases in Feed-Grade Vitamins Data Source: Vitamin Today, Charted by Wang Liying

Notably, as early as 2024, the explosion at BASF’s Ludwigshafen plant in Germany significantly impacted the global VA and VE supply landscape, with effects lasting into 2025. Now, with the escalation of the Middle East conflict, the vitamin sector is once again seeing price hikes.

According to data from Zhuochuang Information, as of mid-March 2026, the reference market price for Calcium Pantothenate has risen to between 40 yuan/kg and 42 yuan/kg, showing a clear rebound from previous lows.

A distributor told reporters that after the outbreak of conflict in the Middle East, although some leading companies had not yet issued official price increase notices, vitamin prices in the market had already risen. The most typical example is Calcium Pantothenate. In early January, some contract prices were as low as 35 yuan/kg. By March 9, quotes from different suppliers began to diverge—some doubled, and others even exceeded 100 yuan/kg—indicating tightening supply.

Analysts believe that the continuous rise in raw material prices for vitamins, combined with stable sales, could directly benefit companies’ performance this year.

The reporter found that the largest suppliers of Calcium Pantothenate include Yifan Pharmaceutical (002019), Brothers Technology (002562), and Xinhecheng. If prices of Calcium Pantothenate increase sharply, these raw material manufacturers are likely to see direct benefits.

During the pandemic, Calcium Pantothenate prices once surged nearly 42% in a single day. From late 2021 to early 2022, prices soared from a low of 75 yuan/kg to between 320 and 360 yuan/kg, a cumulative increase of 327% to 380%. Notably, on January 13, 2022, prices jumped from 162 yuan/kg directly to 230 yuan/kg, attracting widespread market attention.

Vitamin raw materials mainly come from petrochemical raw materials and agricultural crops such as corn and soybeans. About 70% of Calcium Pantothenate is used as a feed additive, especially in pig feed and aquaculture. The key intermediate for Calcium Pantothenate—Pantothenic Acid Lactone—relies on isobutyraldehyde for production. In 2021, due to limited capacity increases in isobutyraldehyde and strong downstream demand for 1,4-bentanediol, prices soared above 18,000 yuan/ton, pushing up overall production costs.

The ongoing conflict in the Middle East continues to intensify, with upstream and downstream chemical industry prices already showing layered transmission increases. Will Calcium Pantothenate prices surge again?

According to public information, Yifan Pharmaceutical is a global leader in Calcium Pantothenate, with its subsidiary Xinfu having an annual capacity of about 8,000 to 8,600 tons, accounting for over 40% of the global market. By 2026, capacity is expected to expand to 12,000 tons, solidifying its position as the industry leader. Some analysts believe that the current average cost of Calcium Pantothenate is about 45 yuan/kg. If prices rise to 100 yuan/kg, Yifan Pharmaceutical could see an additional profit of 600 million yuan.

The second-largest manufacturer is Brothers Technology, which has a capacity of 4,000 tons and is also developing its own Pantothenic Acid Lactone production, improving cost control.

Industry analysts told reporters that, from a cost perspective, upstream chemical raw materials and oil prices are rising due to ongoing geopolitical conflicts, leading to longer delivery times for Calcium Pantothenate producers and increased cost transmission pressure. Meanwhile, supply constraints have further driven prices upward, with major manufacturers generally adopting suspension of quotations and contracts since early March, increasing market attention.

A research report from China Post Securities states that current prices of vitamin raw materials are at historically low levels, with strong industry control over production and a willingness to raise prices. As a follow-up to other price increases, Calcium Pantothenate’s price trend has begun to rise.

From the supply chain transmission perspective, this round of price increases is highly sustainable. Calcium Pantothenate is mainly used as a feed additive, which accounts for a relatively small proportion of downstream breeding costs, making downstream customers less sensitive to price changes and allowing upstream price increases to pass through smoothly. Additionally, geopolitical factors such as the Red Sea situation have caused global shipping capacity to tighten, raising shipping costs and further increasing the landed cost of Calcium Pantothenate.