Amino acids markets: Prices cooling down
The market seems to have slowed down a bit on most regions, both on export and on the domestic Chinese market. A large portion of Q3 and Q4 has been contracted for lysine and threonine. Learn more in this week’s feed additives snapshot (week 29).
Prices have increased lately and so have container freight prices. Buyers have become more conservative and wait and see for any additional purchases. Lysine hcl is still tight in terms of availability in the local regions. Prices are firm. Q4 price offers are a bit lower compared to that but still firm. Valine, tryptophan and methionin remain stable to weak and the market for those products is quiet.
A French manufacturer of amino acids and fermentation products has been sold to a French large animal feed group. It is the last European production capacity of fermented amino acids.
In partnership with Feed Additive Prices
Lysine
FOB China prices have stabilised this week at a higher level compared to some weeks ago. Export demand is still good, but overall the number of transactions is slowing down. Stock levels in the regions are still relatively low and spot prices remain firm. Container freight costs continue to weigh heavily on the end price and it is not clear yet how freight prices will develop further in Q3 and Q4. Q3 is contracted and a good portion of Q4 is as well.
Threonine
After a period of price increase, the market seems to have stabilised and the number of transactions is limited at the moment. FOB China prices are stable, container freight remains high and stock levels are reasonable in the various regions. Q4 arrival in Europe and the USA needs to be contracted soon as the lead time is 3 months still. But buyers have maintained a wait-and-see attitude. The local Chinese market is stable to relatively quiet. Buyers are covered for most of Q3.
DL-Methionine
Slightly weaker prices are seen this week, compared to previous weeks. No significant new demand is seen and supply seems to be comfortable. Prices overall are weaker. In almost all regions, the market is quiet and contracted forward. Q3 is contracted ahead and there is a wait-and-see attitude for Q4 still.
Tryptophan
No major changes are seen really on tryptophan. FOB China prices are weakening, other regions are starting to follow now as well slowly. 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 so far. A good portion of Q3 is contracted but there is still a wait-and-see attitude for longer-term contracts.
Valine
The overall trend for valine is weak. Periods of price decline, then stabilising and this week some decline again, are seen. The container freight has its impact, but that is mostly to slow down the price decline. Suppliers are fighting for market share and local stocks are plentiful, often at earlier higher prices. Most importers are taking a loss on valine. The market is very quiet at the moment and only small spot buying activity is seen. A portion of Q3 is contracted, but nothing any further ahead.
