Amino acids markets: Buyers keep eye on container freight development
Threonine prices are stable, both in the regions as in China itself. But the level of activity is very low and there is a wait and see attitude for Q4 purchases. Lysine hcl FOB China prices came down just slightly. But buyers are focusing more on the future container freight development, as that may have a larger impact on the final price. Learn more in this week’s feed additives snapshot (week 35).
The methionine market remains very calm and prices have been coming down gradually in the past few months. No changes seen on tryptophan, it is mostly stable right now. Valine and arginine are stable to weak at very low price levels.
In partnership with Feed Additive Prices
Lysine
FOB China prices have come down slightly this week, but nothing significant. It has been a bit quieter recently in China locally and also on export orders, this has led to a bit more sales pressure on the Chinese manufacturers. Prompt availability in Europe plus partly in the US is still poor. Shipments have been delayed constantly ex China and no nearby signs of improvement are seen for that. Spot prices remain high, Q4 price offers are more stable now. Buyers are more focusing on the container freight rate developments rather than the actual lysine hcl prices. Container freight rates on several routes are expected to weaken, although that will only affect Q4 shipments and therefore Q1 arrivals. Q3 is contracted and a good portion of Q4 is as well.
Threonine
The local Chinese market remains relatively firm and availability is not optimal. The export market is very quiet though right now. Buyers in the EU and USA have a wait-and-see attitude. Right now they are mostly monitoring the container freight market rather than the (for the most part) stable FOB China threonine prices. In most regions, prices look stable, availability is OK and there are no signs that prices will either weaken or increase in the short term. Depending mostly on container freight developments. Container freight prices seem to weaken a bit and that may have some effect on October shipments ex China, meaning Q1 business in the export regions under current lead times. Buyers are covered for most of Q3 and a small portion of Q4.
DL-Methionine
Very quiet market, with a big portion of the summer plant maintenance finalized by now. Stock levels seem healthy, demand is relatively sluggish and supply seems ok. Prices have been coming down slowly in several regions. A scenario could be that in case of further price decline, suppliers start to offer resistance, but that is speculative. No major changes are expected for nearby. Q3 is contracted ahead and there is a wait-and-see attitude for Q4 still.
Tryptophan
Mixed market information is seen, where prices are mostly stable and even a bit weaker compared to the previous month. But at the same time, suppliers are indicating that the market should be firmer and fresh price offers have been taken up a bit. Overall the tryptophan market seems to stabilise and no major changes are seen and/or expected. Q3 is contracted and a portion of Q4 is as well.
Valine
Weak and oversupplied market with prices declining step by step. It was expected that consumption of valine could increase when prices would go down further, but that is not really seen yet in most regions. The overall trend for valine is weak. The high container freight has its impact, but that is mostly to slow down the further price decline. The market is very quiet at the moment and only small spot buying activity is seen. Most of Q3 is contracted, but nothing any further ahead.
