On February 21th, Zhejiang NHU Company Ltd. announced that it would increase the quoted price of Vitamin E and Vitamin A. The price of Vitamin E would be increased to 200 Yuan/kg with a 120% growth compared with last announcement (on October 20th, 2007). The price of Vitamin A would be increased to 200 Yuan/kg with a 60% growth compared with last announcement (on December 4th, 2007).
The price increasing was because that the global supply is scarce and the production cost increased.
One day after NHU's announcement, Zhejiang Medicine Co., Ltd. (the third biggest manufacture for Vitamin E) also made the same decision that Vitamin E price increased by 120%. The price would be implemented for new orders from May. The total production capacity for Vitamin E of the two companies occupies 40% of global production capacity.