Amino acid markets stabilising; while vitamin suppliers stop offering

Amino acid market highlights

Some Q1 offers are still seen for methionine and they are mostly slightly lower than the current Q4 spot prices. Buyers are conservative. Valine remains stable to weak. Tryptophan has suddenly become active in Europe and prices increased. There was less material available than anticipated for nearby and that triggered some activity and price increases. In other regions tryptophan is stable mostly.

Vitamin market highlights

Vitamin A and E have showed a slight price decline again this week. One of the vitamin E suppliers has stopped offering new prices in an attempt to stop the price decline. Vitamin C manufacturers have stopped quoting prices, although some traders have returned to the market with increased prices. No significant reaction from the market is seen until now. 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 continues to be weak, prices have become very low. There is no change expected anytime soon.

Lysine

In the past few weeks, there has been some decent market activity in Europe, Asia, and Latin America for Q1. Prices have started to be more stable past 1-2 weeks, although the market in China remains weak. As EUR-USD was more favourable and Q1 is around the corner and lead times ex China become a bit more uncertain in the coming periods, buyers started to contract a portion or remainder of their Q1 needs. Shipments ex-China are offered for late January and early February now. A decent portion of Q1 is contracted now in most regions.

Threonine

Not only on a FOB China basis, but also in all other major regions, prices continue to remain very stable and manufacturers continue to offer similar prices week after week. In Europe, the recent stronger euro against the USD has been priced in by now and prices are stable. Q1 is partly contracted. But for the remainder of Q1, there is a wait-and-see attitude as buyers would like to see that steady price level for a longer period before they take longer positions.

DL-Methionine

The methionine market is relatively quiet at the moment. A part of Q1 was contracted some time ago when prices increased in Europe and Asia. But for the remainder of Q1, there is mostly a wait-and-see attitude among buyers as suppliers have become a bit more proactive with their price offers and at the same time, those prices are below the current spot market. One of the main manufacturers that faced delays in bringing online their new capacity now seems to be on track to be fully up and running estimated mid or second half of Q1. Q4 and an overlap into Q1 are mostly contracted.

Tryptophan

Especially in Europe, the spot prices of tryptophan have gone up suddenly. Stocks are lower than expected and supply slightly disrupted. And as buyers were not contracted very long ahead, there has been a pull on material this week in Europe. The market in the US is still tight and prices are higher than in other regions. But for example in China, prices have started to weaken recently. Demand is soft and significant additional capacity will come online soon. Q4 is now fully contracted and a portion of Q1 is now as well.

Valine

The overall valine market continues to be weak and prices in most regions have become very low. More product from China is introduced and that has triggered the traditional non-Chinese suppliers to fight even more for market share with lower prices as well. The demand did not grow at the same speed as the capacity. Western suppliers still ask for a small premium compared to Chinese suppliers, but the spread is much smaller than before as Western suppliers do not want to lose too much market share. Q1 is partly contracted.

Vitamin E 50%

Some suppliers have stopped offering new prices in an attempt to stop the price decline. So far, no significant reaction from the market is seen as a result, and again some price decline is seen this week in all major regions. From a historical point of view, the current market prices are not at an all-time low, but they are also not high at all. The market is quiet and calm and only a limited number of transactions is seen. Q4 is contracted and some overlap in Q1, based on older and recent contracts.

Vitamin A 1000

There are no changes seen in the trend of vitamin A1000. Again a slightly weaker market in all main regions. One of the Western suppliers is said to have stopped offering. Prices for vitamin A500 in China have weakened further this week. Until now, most suppliers are focusing on reducing costs, as there are no short-term expectations that the relatively weak market dynamics will change significantly. There are talks about the destocking being finished, which could have an effect, but it is all very speculative still. Q4 is contracted by now and some overlap is seen in Q1.

Vitamin D3 500

Vitamin D3 has been static lately in all major regions and not a lot of change is seen. Prices remain low and the level of activity is very slow. Supply is ample on a global basis, although local stocks are sometimes low as buyers mostly buy hand-to-mouth. Q4 is contracted, and a portion of Q1 as well for practical regions. But buyers are not tempted to take significant longer-term positions, despite the already low price.

Vitamin B2 80%

Several suppliers have stopped offering in China, in an attempt to stop the price decline and to try to increase the price. But no significant impact has been seen on the market until now. The vitamin B2 market still feels weak and quiet in most regions. The price in Europe has almost been a flat line for months now and as long as no new (Chinese) capacity is seen in the EU, no changes are expected. Q4 was contracted already some time ago and there is some cover for Q1.

D-Calpan

Although the speed of price decline is less than in previous weeks, there is still an ongoing push for material from suppliers and prices remain stable to weak in all regions. Prices have reached very low levels and every time buyers consider booking Q1 volume, they are faced with even lower prices. Q4 is contracted by now as it is already December and a portion of Q1 is booked as well for practical reasons. But Q1 is mostly still open, as buyers are not comfortable booking far ahead, despite the very low market price.

Vitamin B3

Several suppliers have stopped offering in China, in an attempt to stop the price decline and to try to increase the price. But no significant impact has been seen on the market until now. The vitamin B2 market still feels weak and quiet in most regions. The price in Europe has almost been a flat line for months now and as long as no new (Chinese) capacity is seen in the EU, no changes are expected. Q4 was contracted already some time ago and there is some cover for Q1.

Biotin

The biotin market is 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. Q4 is contracted and a good portion of Q1 is as well, Q1 is based on old and new contracts. In some cases, buyers took long-term contracts well into 2024.

Vitamin C 35% mono

For a few weeks now, most vitamin C manufacturers and suppliers have stopped offering new material, in an attempt to turn things around. Some traders have now returned to the market with new increased prices, but no buying activity seen yet. Due to the global oversupply, prices had become a record low. So far, the price has stopped declining further, but an increase backed up by actual transactions is not seen. Q4 is contracted and a portion of Q1 is as well. In some cases, buyers had contracted a large portion of 2024 as well.