Threonine much firmer in China and Europe, Vitamin A and E remain weak

Methionine has become very quiet again in Europe, after a recent Q3 buying round. Other regions like the US are now considering what to do, cover Q3 or wait-and-see a bit longer. Threonine is firmer and price FOB China have increased quite a lot compared to several weeks ago. In several regions that has triggered the remainder of Q3 cover and even an overlap into Q4. Tryptophan is firmer in China, and other regions observing now if that firmer tone will spread. Valine is very calm.

Announced plant maintenance or price increase announcements, have not done anything so far to the vitamin E or A market. Very calm and weakish still. Vitamin B3 remains firm in the spot market and buyers are monitoring closely if their existing contracts at low prices will be executed on time and in full, as raw material for B3 production is still tight. Vitamin B2 still shows a firmer tone in China and the US. The rest of the vitamin market is quiet and stable at mostly low prices.

Lysine

Lysine hcl markets were active in some regions for Q3 buying, but have turned more quiet now. Stable FOB China prices for some time now, at a low level, have triggered buyers to assess risk and in some cases take forward contract cover for late Q3 and into Q4. Others still have a wait-and-see attitude as availability seems fine and there is still a typically weaker summer period ahead in some regions.

Threonine

Chinese threonine suppliers have increased their price again this Monday morning June 5, 2023. And some of them are not offering yet for this week. The market now starts to react a bit more with forward buying. During the recent price increase, several buyers booked contracts for Q3. Prices FOB China have been firming in the last couple of weeks and also in some regions the local price has increased by now. Manufacturers that are offering, are holding on to these relatively higher FOB China prices for July and August shipments. The market felt calm until recently, but now is becoming more active. There is still a decent group of buyers though with a wait-and-see attitude who want to see if this increase will stick. Q2 is contracted fully and a good portion of Q3 is contracted as well, on average.

DL-Methionine

The market has turned calm again in regions where there was purchase activity 1 – 2 weeks ago. Prices have stabilised there. Other regions are still considering what to do in terms of Q3 buying. Q2 was already contracted, and Q3 in several regions is also contracted.

Tryptophan

Prices FOB China remain firm(er), but no impact is really seen on/in other regions. Prices remain stable there so far. Q2 and a portion of Q3 are contracted in most regions.

Valine

Stable to softer market in most regions. Demand is a bit behind and new material is coming on the market from one of the main suppliers. Also, a main Chinese supplier is turning a threonine factory around to produce valine. At this moment the market is relatively calm. Some transactions are seen for spot, but nothing unusual. Q2 and a decent portion of Q3 are contracted.

Vitamin E 50%

No changes are seen in the market, other than a quiet and stable to weak market in all regions. Traders continue to sell off material at a discount, leading to price decline. Manufacturers on the other hand try to keep prices at least stable or increase them, without effect so far. Summer plant maintenance coming up for, or most likely expected to be announced. The market is contracted for Q2 and a decent portion of Q3.

Vitamin A 1000

Vitamin A shows a similar market sentiment as vitamin E. Some buyers have concluded long-term contracts into late Q3 at these low price levels, while others also work partly on a spot price/delivery basis. Recently, one of the main Chinese manufacturers has announced a price increase for vitamin A 1000. No reaction from the market has been seen. Seems that all market participants are in a wait-and-see mode right now, with manufacturers trying to move the price back up, but without much success, so far. Q2 is contracted and a decent portion of Q3 is as well.

Vitamin D3 500

Compared to previous weeks, no changes can really be seen. The market is very quiet and well contracted ahead of Q3. The spot price in Europe has weakened slightly recently. Market prices in general are still at a very low level. The regulation around the import of vitamin D3 500, made of animal origin (components) is now more clear going forward.

Vitamin B2 80%

Several producers and suppliers have been trying to move the price up from the low level and some of them have even stopped offering. It seems to be working finally, leading to higher prices, in a few regions like China and the US. The market has been a bit more active in those regions and some cover was taken into early Q3, although conservatively. In other regions, it remains quiet and buyers are already well contracted for Q2 and with a decent overlap into Q3.

D-Calpan

The market remains relatively weak and prices have been coming down a bit again recently. None of the manufacturers seem to step up until now, to stop the decline. The priority seems to keep market share. Although they are not happy with the current low market prices. There is a decent contract cover for Q2 and early Q3, but some buyers also continue to buy hand-to-mouth as they expect even lower prices.

Vitamin B3

The vitamin B3 market remains firm and relatively active. A lot of longer-term contracts have been concluded, but the focus is now on contract execution and the availability of product to fulfil those pending contracts. Not all market participants are fully sure they will receive their contracted material, as availability is not good everywhere. The root cause of that is a shortage of raw materials. Most end-users already have contracted Q2 and a big portion of Q3 and even Q4 at a mix of the low prices of some weeks ago and at the recent/current slightly higher prices.