Amino acid markets: Quite in most regions
The overall amino acids market seems quiet in most regions and there is already cover for Q3 and a portion of Q4 in most cases. Learn more in this week’s feed additives snapshot (week 34).
Lysine and threonine prices are stable, although the lysine hcl situation in Europe remains very tight and is not expected to significantly improve anymore in 2024. The methionine market is very calm and prices have been coming down gradually in the past few months. Tryptophane is said to be firmer according to suppliers, but it does not show yet in actual market transactions. Prices are mostly stable at the moment. Valine remains weak and oversupplied.
In partnership with Feed Additive Prices
Lysine
Availability in Europe and also partly in the US is poor. Material is delayed constantly ex China and no nearby signs of improvement are seen for that. Spot prices remain high but also Q4 price offers remain firmer than expected. FOB China prices are mostly stable for some time, they could come down a few cents as the Chinese market is not strong right now. Container freight rates on several routes are expected to weaken, but that will only affect Q4 shipments and therefore Q1 arrivals. Q4 is expected to remain firm in prices and very low on inventory. Q3 is contracted and a good portion of Q4 is as well.
Threonine
FOB China prices have been slightly higher lately compared to July prices, which is mostly related to the domestic Chinese market and translated into slightly firmer export prices as well. In several regions, prices look stable, availability is OK and there are no signs that prices will either weaken or increase in the short term. Container freight prices seem to weaken a bit and that may have some effect on October shipments ex China, meaning Q1 business in the export regions under current lead times. Buyers are covered for most of Q3 and a small portion of Q4.
DL-Methionine
Very quiet market, with a big portion of the summer plant maintenance finalised by now. Stock levels seem healthy, demand is relatively sluggish and supply seems ok. Prices have been coming down slowly in several regions. A scenario could be that in case of further price decline, suppliers start to offer resistance, but that is speculative. No major changes are expected for nearby. Q3 is contracted ahead and there is a wait-and-see attitude for Q4 still.
Tryptophan
Mixed market information is seen, where prices are mostly stable and even a bit weaker compared to the previous month. But at the same time, suppliers are indicating that the market should be firmer and fresh price offers have been taken up a bit. Overall the tryptophan market seems to stabilise and no major changes are seen and/or expected. Q3 is contracted and a portion of Q4 is as well.
Valine
Weak and oversupplied market with prices declining step by step. It was expected that consumption of valine could increase when prices would go down further, but that cannot be seen as yet in most regions. The overall trend for valine is weak. The high container freight has its impact, but that is mostly to slow down the further price decline. The market is very quiet at the moment and only small spot buying activity is seen. Most of Q3 is contracted, but nothing further ahead.
