Amino acid markets: Impact of high container freight rates increasing
Export prices FOB China for lysine hcl and threonine remain stable to firmer and demand is relatively good. Chinese suppliers indicate to be sold out for July and August shipment and only offer September shipment as a first possibility. Learn more in this week’s feed additives snapshot (week 28).
Due to the high and still slightly firming container rates, local import prices are firm compared to some months ago and no nearby relief is seen. Local stock levels are relatively low due to the ongoing delays. Valine, tryptophan and methionine remain stable to weak and the market for those products is quiet.
In partnership with Feed Additive Prices
Lysine
Ongoing tightness on China’s export market but also stock levels in the regions are relatively low. Local prices in China remain relatively stable, while FOB China prices remain stable to firm for export. Local prices in Europe and the USA remain firm, and container freight costs continue to weigh heavily on the end price. Q3 is contracted and a good portion of Q4 is as well.
Threonine
No changes are seen and/or reported compared to the previous week. The FOB China prices remain relatively firm and with the higher container prices, the market for export regions remains firm. Q4 arrival needs to be contracted soon as lead times are 2 to 3 months still. The local Chinese market is stable to relatively quiet. Container freight rates to several main ports continue to increase and no nearby relief is seen. Buyers are covered for most of Q3. There is a wait-and-see attitude for longer-term contracts, although slowly but surely a larger portion of Q4 is being contracted now.
DL-Methionine
No changes are seen and/or reported compared to the previous week. Methionine prices have been slightly weaker in most regions, but stabilising again currently, as higher container freight rates compensate for an earlier decline. In almost all regions, the market is quiet and contracted forward. Q3 is mostly contracted ahead and there is a wait-and-see attitude for Q4 still.
Tryptophan
No major changes are seen really on tryptophan. Only FOB China prices are weakening, while other regions are still stable. Any recent weaker tone is now compensated by higher container freight rates. In local regions, like Europe, where Chinese suppliers do not have authorisations in place yet or where buyers won’t accept supply from Xinjiang origin, the local Western suppliers can keep higher prices. A good portion of Q3 is contracted but there is still a wait-and-see attitude for longer-term contracts.
Valine
After a period of relatively rapid price decline, the FOB China prices seem to have stabilised, although at a low price level. Although the trend still looks weak. Markets in other regions seem to have stabilised as well as earlier price decline is now offset by high container freight rates which are priced in. The market is very quiet at the moment and only small spot buying is activity seen. A portion of Q3 is contracted, but nothing any further ahead.
