Amino acids market cooling down

In partnership with Feed Additive Prices

Lysine

After a period of relatively active markets, it has become more quiet now. Q2 and a good portion of Q3 are contracted and after a period of increasing and then stable prices, there is now a wait-and-see attitude amongst buyers. Prices FOB China are stable to slightly weaker. But container freight rates to for example Europe have increased, leading to a stable price locally. Local stock situations have improved, but the market is still catching up and lead times are considerably longer ex-China. So supply is just about enough.

Threonine

Prices FOB China have declined slightly, after a period of stable to firm price levels. But as container freight rates to several main ports have increased, the local prices have remained stable or even look a bit firmer for Q3. Nearby availability remains a challenge in some cases, especially the granular product, as the material is delayed ex China and new longer lead times are not compensated yet by higher inventory. Buyers have been contracting for most of Q2. Q3 is still mostly open.

DL-Methionine

The methionine market has been static in most regions for weeks now and prices remain firmer compared to some months ago. Although in theory there is a global oversupply, the supply is reduced due to mainly plant maintenance and delayed introduction of new capacity. In almost all regions, the market is quiet and contracted forward. Prices are stable at the moment. Q2 is contracted by now and several buyers have also contracted a portion of their Q3 needs as well.

Tryptophan

Some regional differences are seen. The market in the US remains stable to firm, and S&D seems to be balanced to leaning to slightly tight. Prices in China are weakening as there is ample supply. The market in the EU is relatively tight but some slight price decline is seen now, although marginal. In Europe, there are not that many options for Chinese import yet, and domestic suppliers are keeping prices up. A decent portion of Q2 has been contracted by now.

Valine

Prices in all regions seem stable at the moment and most of Q2 is contracted and the market is quiet. There is even a potentially weaker tone expected. More Chinese manufacturers are stepping into the smaller amino acid production and/or scaling them up. So, availability has improved for valine. At the same time, Western manufacturers are struggling with the current low market prices and indicate to see no sustainable long-term business model in such a low-priced market. Q2 is mostly contracted, but no real interest for Q3 yet.