Amino acids markets: Slowing down as the Chinese New year holiday starts

The FOB China prices have shown a decline over the past few weeks, and it remains to be seen how they will evolve following the Chinese New Year. Learn more in this week’s feed additives snapshot (week 5).

Highlights

Lysine: FOB China prices have dropped recently, with uncertainty around their direction post-Chinese New Year. In Europe, the introduction of anti-dumping duties has led to price increases, though the market remains relatively stable. In the USA, prices are stable
Threonine: The market is declining due to a surplus of inventory and weak demand for Q2. Prices are falling across most regions, but already low FOB China prices suggest potential stabilisation when demand picks up in Q2.
DL-Methionine: A recent disruption at a Chinese manufacturer has raised caution among suppliers, but no significant price hikes have occurred. The market is stable.
Tryptophan: Prices have stabilised after a decline, with minor increases in some regions.
Valine: Prices are firm, with regional variations. In the USA, prices are stable, while in China, FOB prices have risen due to reduced production. Europe is seeing price hikes and lower availability due to an anti-dumping investigation affecting Chinese imports.

In partnership with Feed Additive Prices

Lysine

The FOB China prices have shown a decline over the past few weeks, and it remains to be seen how they will evolve following the Chinese New Year. In Europe, the inclusion of anti-dumping duties for new contracts has resulted in significantly increased prices, while the market itself has been relatively calm yet somewhat weaker recently. Meanwhile, in the USA, lysine prices are currently stable, with Q1 contracts secured and a small portion of Q2 also confirmed.

AMINO ACID PRICES: Here the market prices of 3 important amino acids are tracked – check it out…

Threonine

The threonine market is experiencing a general decline as suppliers compete for market share amidst a surplus of inventory and unsold material, leading to a lack of new demand for the second quarter. Prices are decreasing across most regions and may continue to fall in the near future. However, the FOB China prices have become low from a historical point of view, suggesting that when demand returns in Q2, the market is likely to stabilise. Additionally, there are indications of lower container prices, which may not have been fully accounted for yet. Q1 is fully contracted while Q2 remains open mostly still.

DL-Methionine

Recently, a disruption was reported at a methionine manufacturer in China, prompting several suppliers to exercise caution in their offerings and, in some instances, raise prices. Despite this situation, significant availability issues have not materialised, and no substantial price increases have been observed compared to the period prior to the incident. It appears that the recent decline in prices has come to a halt as a consequence of this event. The market remains stable, with Q1 contracts secured and some overlap extending into Q2.

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

The valine market remains generally firm, though notable regional variations exist. In the USA, prices have been mostly steady and only slightly higher due to good access to local supplies. Conversely, in China, FOB prices have recently risen as various manufacturers have cut back production in response to previously unsustainably low prices. Meanwhile, Europe is facing an anti-dumping investigation concerning Chinese valine, resulting in price hikes and decreased availability as imports from China slow down. Currently, a significant portion of the first and second quarter has been contracted.