Amino acids markets: Methionine stabilised and lysine market looking for direction
Last week, market participants reported a disruption in the supply of a key raw material for methionine production at a facility in China. However, there has been no significant impact on prices or availability within the general methionine market. Learn more in this week’s feed additives snapshot (week 4).
In partnership with Feed Additive Prices
Lysine
Recently, provisional anti-dumping duties have been officially implemented in Europe for products of Chinese origin. Offers for the second quarter have already seen price increases in Europe, reflecting the new pricing landscape, although the lysine HCl price has started to weaken again this week. Business activity remains slow, but gaps in supply and reduced availability are anticipated for early Q2. FOB prices from China have declined this week, while prices in the USA remain stable to firm. The market is largely contracted for the first quarter, with a small overlap into the second quarter.
Threonine
The threonine market has experienced some softening on a FOB China basis. In the USA, demand for threonine granular products remains robust; however, availability is limited and shipments are facing delays. Meanwhile, in Europe, the market has shown stability to a slight decline this week, with the effects of a weak euro against the dollar already evident in pricing. Diminished FOB China prices alongside reduced freight costs may lead to softer pricing for Q2 offers. Across many regions, industry participants are taking a cautious wait-and-see stance, with Q1 contracts in place and some coverage beginning to materialize for Q2.
DL-Methionine
Last week, market participants reported a disruption in the supply of a key raw material for methionine production at a facility in China. However, there has been no significant impact on prices or availability within the general methionine market. In light of this disruption, several methionine suppliers have adjusted their pricing strategies or temporarily retracted their offers to evaluate market conditions. While prices had been on a downward trend until recently, they have now stabilised. The first quarter is largely contracted, but the second quarter remains under review.
Tryptophan
Prices are mostly stable after a period of decline and even experiencing a few minor increases. Overall, stability prevails across major regions, as prices maintain their positions following a recent dip. At this stage, most contracts for the first quarter are in place, and some buyers are exploring contracting opportunities for early in the second quarter.
Valine
In several regions, prices are experiencing an upward trend as we move into the second quarter, with FOB China price offers also reflecting this increase. The European Commission has launched a formal anti-dumping investigation into valine produced in China and imported into the EU, which is contributing to the rise in prices across Europe. Nevertheless, despite these escalating costs, overall market activity remains calm, as contracts for the first quarter have already been established and only a small fraction of business for the second quarter has been secured.
