Amino acid markets firming while volatility seen in vitamin markets

The cost price increased for sailing from Asia to for example Europe via South Africa instead of the Suez Canal (avoiding the potential attacks in the Red Sea). But heading towards Chinese New Year at the same time, there is a lot of freight price speculation involved as well, leading to 4 or 5 times higher prices compared to December 2023. Buyers have contracted most of Q1 and in some cases a portion of early Q2 as well for lysine and threonine. Methionine is relatively static, not too much happening. Valine has become stable instead of weak and one of the main Western suppliers has stopped offering for Q2 due to uncertainty for shipments and freight rates ex Asia at the moment. Tryptophan has become calmer after a volatile period recently, although it remains tight in the US.

Vitamin E prices have kept their slightly firmer tone and with higher container rates at the same time, buyers are tempted to cover Q2 even further. Vitamin A 1000 trend is unchanged, meaning stable to weakish, and below US$18/kg now FOB China. Vitamin C manufacturers have stopped quoting prices, and markets have become firmer for some weeks now. But most forward cover was already taken when prices were low. Some vitamin B3 suppliers stopped offering as the market price is getting too low. This has led to some price stabilisation and even some spot price increases, although marginal. D-calpan continuous to be weak, although buyers do consider now the potential impact of the container situation. Vitamin K3, B6 and B1 remain firm or stable to firm.

In partnership with Feed Additive Prices

Lysine

In Europe, spot prices have increased significantly as there is doubt about a timely replenishment in March and onwards due to potential delays, and therefore sellers are not keen to offer their current buffer stocks. Prices for early Q2 delivery are now also firmer in Europe, as significantly higher container freight rates are now taken into the calculations. Other regions do not seem impacted yet to the same extent as Europe, although most container trade lanes ex Asia show higher rates due to the Red Sea issue. In China, the lysin market is stable to weak and oversupplied, and FOB prices are stable to weak. Most of Q1 is contracted by now and a small portion of Q2 as well.

Threonine

Regions that are impacted by significantly higher container freight rates ex Asia, are now confronted with a potential firmer price for threonin. Although the situation is interesting, as FOB China prices have been declining lately as there is ample product available. But at the moment the overall sentiment is bullish in for example Europe and spot prices are increasing as well, together with early Q2 offers. The market is not very active, there is a wait-and-see attitude so far. Q1 is mostly contracted, a small portion of Q2 as well.

DL-Methionine

Several upcoming maintenance periods have been announced recently, but not a lot of reaction is seen as a result of that. The methionine market remains quiet at the moment. Spot prices have been declining a bit, but are still higher than the offered Q1 prices, with a small spread though. A part of Q1 was contracted some time ago when prices increased in Europe and Asia. Suppliers in the US are also trying to increase prices, but without success so far. The demand is not there to support that increase. For the remainder of Q1, there is mostly a wait-and-see attitude. A portion of Q1 is contracted.

Tryptophan

After a bit of a volatile period in for example Europe, the market has now become more calm, as buyers have contracted Q1. And prices in for example Europe declined a bit again, compared to previous weeks. However in general in China and the US, the market remains firm and availability continues to be tight. Most of Q1 is contracted.

Valine

In line with many products ex China, the recent stable to weak market has now become more stable again in anticipation of container logistics and freight rate impact. One of the main Western suppliers has therefore stopped all offers for Q2, to assess the current supply situation. The overall valine market is quiet and calm at the moment, and well contracted for Q1 in most regions.

Vitamin E 50%

Prices have slightly firmed recently as some suppliers stopped offering or indicated to have less production output due to a lack of raw materials. This has led to a slightly firmer market in several regions and triggered Q1 buying. Right now the market is relatively quiet, with some remaining Q1 buying here and there. Most of Q1 is contracted.

Vitamin A 1000

The market for vitamin A 1000 remains unchanged in all regions. Prices are stable to weak, although no significant decline has been seen any more in the past couple of weeks. Despite the declining prices, there is a decent cover for Q1 as buyers don’t want to take the risk of chasing the market in case things may (temporarily) turn around.

Vitamin D3 500

No change has been seen in the vitamin D3 market for months already. It remains static and weak/low-priced in all major regions and the level of activity is very slow. Supply is ample globally, although local stocks are sometimes low as buyers mostly buy hand-to-mouth. Most of Q1 is contracted for practical and risk management reasons. But buyers are not tempted to take significant longer-term positions, despite the already low price.

Vitamin B2 80%

Several attempts by suppliers to stop the price decline and even to increase prices have not worked so far, although prices seem to have stabilised recently at a low level. The price in Europe has almost been a flat line for months now and as long as no significant new (Chinese) capacity is seen in the EU, no changes are expected. Most of Q1 is contracted for practical and risk management reasons.

D-Calpan

There is an ongoing push for sales from suppliers, despite the already declining price trend and current low market prices in all major regions. Prices have reached very low levels and every time buyers consider booking additional Q1 volume, they are faced with even lower prices. Although it has started to feel more stable recently. A decent portion of Q1 is booked for practical and risk management reasons.

Vitamin B3

Some suppliers have recently stopped offering, or increased prices, as market prices became unsustainably low to them. In some regions, like Europe, it did put a brake on the recent price decline, and in some cases, the spot prices even firmed a bit. The majority of material has been contracted ahead some time ago already, so there is not a lot of new demand right now. The overall market is still stable to weak and has reached a low price point again. A good portion of Q1 is contracted by now.

Biotin

The biotin market remains very calm with some occasional spot buying mentioned. Until now, the same sort of market rhythm is seen with periods of stable prices and then some decline again. At an already historically low price level. Most of Q1 is contracted. In some cases, buyers took long-term contracts well into 2024, some of them also older contracts.

Vitamin C 35% mono

All major manufacturers and suppliers have still stopped offering in an attempt to move away from the historic low prices. So far that has worked, at least in terms of the current spot price increase that is seen in most regions. However, significant cover into 2024 had already been taken before that recent price increase. Potentially some gaps still need to be filled. Q1 is contracted and a large portion of Q2 is as well. In some cases, buyers had already contracted full 2024.