Amino acid market starting up after Chinese New Year

Liquid lysine in Europe has firmed as availability is poor at a western supplier and supply ex Asia is delayed. A shift is again seen to powder lysine. Valine is stable for now, at a low price level. Although a weak outlook.

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Lysine

There is still a mostly wait-and-see attitude, as China is starting up again after their holiday. FOB China prices have become low and relatively stable recently, but prices in some other regions are still slowly going down. Expectations are that the market may weaken further towards the summer, at least on a FOB China price basis. Some Q2 inquiries and transactions are seen in Europe and the US, as securing supply is a priority, with all the delays ex China. Some regional price differences are seen, mostly due to container freight impact. A good portion of Q2 is contracted by now.

Threonine

In general, the threonine market is weak. Before Chinese New Year, prices were coming down on a FOB China basis but also in several other regions. Currently, the speed of decline is less steep but buyers remain careful in taking long-term positions, despite the already low prices. Prices have been lower though, so there is a wait-and-see attitude. Raw material prices have been weak and that has, for now, reduced the inclusion of single amino acids, like threonine. A portion of Q2 is contracted, but nothing significant yet.

DL-Methionine

The market remains tight in most regions. Although, in theory, there should be sufficient material on a global basis, there is an ongoing tight situation reported for nearby deliveries and Q2 availability. Production output and continuous plant maintenance/optimisation continue to put pressure on the supply chain it seems. Additional demand is seen for the spot and for Q2. Price offers are still a bit firmer in the US and from some suppliers, they are also firmer in Europe. A good portion of Q2 is contracted by now and several buyers have also contracted their full Q2 needs.

Tryptophan

After a period of volatility in several regions, along with significant price increases, the market seems to have calmed down again in most regions. However, the supply situation is still said to be a bit tight and that might carry on into Q2. One of the reasons for this tighter market is the domestic supply in for example Europe and the US that is reduced and can’t be compensated fully by imported material. Prices FOB China are mostly stable. A portion of Q2 has been contracted by now.

Valine

Currently, the valine market is very quiet and prices are mostly stable, although at a low level. The delays ex China seem to have stopped the price decline for now. But longer term, the market is over-supplied and the outlook seems to be weak, in all regions. Not a lot of buying activity going on right now. Q1 is contracted and a portion of Q2 is as well. After that, a wait-and-see attitude.