Amino acids markets: Stable to weaker prices FOB China offset by higher container rates
Since last week container freight prices have started to increase again. However, prices for lysine and threonine FOB China are stable to potentially a slightly weaker. Learn more in this week’s feed additives snapshot (week 43).
Bottom line, the prices are stable in the local regions. No activity seen at the moment, only some lysine sulphate transactions. Liquid lysine is being offered more aggressively in Europe, as this product is not under the scope of the lysine anti-dumping case against China. Buyers are switching from powder to liquid, where possible. Methionine market is weakish and by now Q4 has been mostly contracted. Prices decline step by step. Other smaller amino acids remain weakish.
In partnership with Feed Additive Prices
Lysine
FOB China prices are mostly stable this week, but business is slow and there is some sales pressure in China. Container freight has increased, after a period of price decline, and for example, the EUR is weakening against the USD lately. So, the Chinese market is stable to slightly weak, while in Europe and the USA, the prices are currently firming slightly, driven by mostly container freight. A bit longer term, a more stable market is expected. Q4 is fully contracted and some of Q1 is as well. The anti-dumping case against Chinese-origin lysine in Europe is still pending, with no conclusion.
Threonine
After some decent buying activity in late September for the remainder of Q4 and most of Q1, the market has become very quiet. Prices FOB China have firmed after the summer and are currently stable with a potential to weaken slightly in the coming weeks. That potential weakness will most likely be offset by increasing container freight rates, leading to a bottom-line stable market in Q4. Only a relatively small portion still needs to be contracted for Q1, but there is a wait-and-see attitude now. The market is very quiet.
DL-Methionine
Overall, a very quiet market, and in the past few weeks the remainder of Q4 has been contracted very quietly. Prices have been weakening step by step lately and no changes are expected in that trend for the coming period. Q1 needs to be contracted still for the most part.
Tryptophan
Weak markets and prices are declining step by step. The global availability of tryptophan is currently very good and both Chinese and non-Chinese manufacturers are competing for market share. No nearby change is foreseen in this trend.
Valine
Record low prices have been reached now and several manufacturers have decided to stop offering and/or convert their production lines to the more profitable threonine production. Valine is said to be a loss-making product at the moment. There is a bit more interest from buyers to look at the remainder of Q4, although still very carefully as they expect prices to go down further. Q1 is mostly un-contracted.
