Lysine and threonine active for Q3 contracts

In partnership with Feed Additive Prices

Lysine

Price offers fob China remain stable at a higher level compared to some months ago. But the number of transactions is now going down after a period of relatively intensive buying for Q2 and Q3. In the local regions, there is still a low stock level and delayed material arriving in the ports is needed to fill gaps and restore buffers. The market in the US and EU are relatively active for Q3 inquiries and also actual buying for that period is going on. Although some buyers feel the prices will go down in the summer. Q2 is contracted mostly by now and a good portion of Q3 as well.

Threonine

Threonine prices have recently firmed-up in most regions and current price offers FOB China remain firm as well. Some activity is seen for late Q2 and Q3 in the US and EU, as prices are not expected to go down in the coming months due to delays ex China and relatively low stock buffers locally. Prices in for example the EU are stable to slightly firmer, this also has to do with the current EUR-USD exchange rate. Suppliers are trying to move away from the low price levels, and now some steps up have been made. If it will stick, time will tell. Buyers have been contracting for most of Q2. Q3 is still mostly open.

DL-Methionine

In almost all regions, the market is quiet and contracted forward. This is after a period of volatility and price increases. More production plant maintenance has been communicated by one of the main Chinese manufacturers, for later this year. Availability seems to remain tight to okay in most regions and no nearby (next 1-2 months) change is expected due to ongoing reduced output at several key suppliers. Prices are stable at the moment, but still at a higher level compared to some months ago. Most of Q2 is contracted by now and several buyers have also contracted a portion of their Q3 needs.

Tryptophan

The availability of tryptophan remains slightly under pressure in Europe and the US, as local supply is tight. There are not that many options for Chinese import yet and domestic suppliers are keeping prices up. At the same time, prices in China are weakening as supply is more than sufficient. Several market participants indicate that the continuity of tryptophan production by a main manufacturer in Europe might be disrupted, or even discontinued, in the coming period. A decent portion of Q2 has been contracted by now.

Valine

Prices in China are mostly stable, at a low level. More Chinese manufacturers are stepping into the smaller amino acid production and/or scaling them up. So, availability has improved for valine. At the same time, Western manufacturers are struggling with the current low market prices and indicate to see no sustainable long-term business model in such a low-priced market. No significant buying activity is seen right now. Q2 is mostly contracted, but no real interest for Q3 yet.