Pacific Securities: Prices of Vitamin A and Vitamin E have risen significantly, domestic leading enterprises will benefit.

The Pacific Securities released a research report stating that the outbreak of the Middle East geopolitical conflict has led to a significant increase in the prices of crude oil and natural gas, impacting the energy supply in Europe, and the production of chemical products such as Vitamin A and Vitamin E may be affected. Since the end of February, domestic prices of Vitamin A and Vitamin E have respectively risen by 35% and 38%. Global production capacity of vitamins is monopolized by a few major players, with a high proportion of capacity in Europe. If the tightness in oil and gas supply continues, it is advisable to pay attention to the leading enterprises in the Vitamin A and Vitamin E industries. Key Points from Pacific Securities: Event: The outbreak of the Middle East geopolitical conflict has led to a significant increase in the prices of crude oil, natural gas, and many chemical products. On the other hand, the European natural gas supply is greatly impacted, and some chemical production capacity may be affected in the future. As a result, prices of products such as Vitamin A and Vitamin E have risen sharply recently. Recent sharp increases in prices of Vitamin A and Vitamin E products Vitamin A is a fat-soluble vitamin that promotes the growth and reproduction of animals such as pigs, chickens, and cows and maintains various physiological functions such as bones, epithelial tissues, vision, and mucosal epithelial secretion. Vitamin A is one of the chemical products with the highest technological barriers, and the key challenge lies in the complex multi-step synthesis reactions and the control of key intermediates such as citral. Vitamin E, also known as tocopherol, is an essential fat-soluble vitamin for the human body, with a core value of strong antioxidant activity, protecting cells and biological membranes from free radical damage. It also plays an important role in reproduction, immunity, cardiovascular system, etc. The human body cannot synthesize it on its own and needs to obtain it from food or supplements. The production of Vitamin A and Vitamin E both require citral to play an important role, as well as various chemical products such as acetylene, acetone, toluene, para-xylene as raw materials. Due to the impact of the Middle East conflict, as of March 13, 2026, Brent crude oil prices have risen to $103.89/barrel, with a weekly increase of over 11%, and European TTF gas prices have risen to 49.127 Euro/MWh, with a weekly increase of over 67%. According to Baichuan Yingfu data, since the outbreak of the Middle East conflict at the end of February, the price of Vitamin A has risen from 59 yuan/kg to 80 yuan/kg, an increase of 35%, and the price of Vitamin E has risen from 57 yuan/kg to 79 yuan/kg, an increase of 38%. Europe has a large production capacity of Vitamin A and Vitamin E. If there is a tight oil and gas supply in the future, production will be significantly affected. Domestic leading enterprises will benefit. There are about 7 major global producers of Vitamin A, with BASF having a capacity of approximately 14,000 tons/year, accounting for about 27% of the global market share and ranking first. Zhejiang Nhu, Bluestar Adisseo, and Zhejiang Medicine each have capacities of 8,000 tons/year, 5,000 tons/year, and 5,000 tons/year, respectively, and are also important producers. The global supply structure of Vitamin E is similar to Vitamin A, with a few major players dominating the market, and Europe accounting for about 40% of production capacity. In terms of capacities, Zhejiang Nhu, DSM, Zhejiang Medicine, and BASF each have capacities of 60,000 tons/year, 60,000 tons/year, 50,000 tons/year, and 40,000 tons/year, ranking the top four in global production capacity. The ongoing Middle East conflict has led to significant fluctuations in oil and gas prices on one hand and the closure of the Strait of Hormuz has put pressure on European natural gas supply on the other hand. The stable production of products such as Vitamin A and Vitamin E may be affected, and domestic leading enterprises will benefit. Risk Warning: Sharp fluctuations in raw material prices; decline in demand; project progress falling short of expectations, etc.