Volatility in amino acids market, with firming lysine and threonine prices

Lysine hcl is firming in China, Europe and in some other regions as well. Sales volumes have been relatively strong and suppliers are keen to move away from the low price levels. Suppliers are going to try to play that same lysine game on threonine now, keep an eye on that. Tryptophan is very quiet and well contracted ahead. Valine is a mixed market as prices look weak, but some buyers do lock in longer term contracts. Shipments ex China that left mid-December, are now finally coming in, in some cases, to EU ports. And the lead time for pending shipments is still much longer than normal as well.

In partnership with Feed Additive Prices

Lysine

Prices in China continue to be firmer, and some suppliers continue to be in and out of the market. More activity is seen and longer cover is taken by end-users as they feel there is more upward than downward potential. How long this momentum can be kept is always the question, but for now, that market is active in several regions and the tone is firmer. Sales for export have been good lately and after a period of price decline, the market price on a FOB China basis had become very low. Some Q2 and Q3 inquiries and transactions are seen in Europe and the US, as securing supply is a priority, with all the delays ex China. A good portion of Q2 is contracted by now and a small portion of Q3 as well.

Threonine

The price decline seems to have stopped in most regions and there are now attempts to increase the price on a FOB China basis. Some buyers are looking at contracting Q2 and even early Q3, but are also still hesitant. While others have already taken forward cover as prices, in general, are relatively low. Some gaps are expected in April arrival in the EU and US due to delayed shipments ex China. A portion of Q2 is contracted, but nothing significant yet.

DL-Methionine

The market remains tight but is getting less active, compared to the previous weeks. Spot availability remains very difficult in for example Europe. Supplier quotes for Q2 delivery still have a firm tone with limited volume allocation. Despite all the news in 2023 of additional capacity and oversupply, the market is currently tight and prices are firm. Production output and continuous plant maintenance/optimisation continue to pressure the supply chain. A good portion of Q2 is contracted by now and several buyers have also contracted their full Q2 needs.

Tryptophan

The tryptophan market has become very quiet and even a slight price decline is seen in the EU market, although availability is still not optimal in that region. In other regions, the price is staying stable for now. The market seems to have calmed down again in most regions after some volatility earlier this year. Prices FOB China are mostly stable. A portion of Q2 has been contracted by now.

Valine

Mixed market signals. Due to ample supply ex China mostly, the market prices have been weaker recently. But at the same time, buyers in for example Europe are looking at Q2 cover. Some activity is therefore seen in a few regions, like Europe, although limited. Buyers mention that the price is low and that it may decline further, but there are also some concerns about availability in Q2. The delays ex-China seem to have stopped the price decline for now. Q1 is contracted and a small portion of Q2 is as well.