Lysine and methionine remain firm for spot/nearby deliveries in several regions. But price offers for lysine hcl and sulphate for Q2 are starting to weaken as freight rates are coming down again and a softer amino acids market is expected after Chinese New Year. Learn more in this week’s feed additives snapshot (week 05).
The threonine market is weak in general, although spot deliveries remain stable in some regions. FOB China prices are coming down. Valine is cooling down again in Europe, the US and China. Tryptophan remains firm in the US, but has stabilised in Europe after the recent increase in price.
The market is turning quieter now as China has finished their stock building for February and March and most other regions are now contracted ahead into late Q1 and early Q2. Some regional price differences are seen, mostly due to container freight impact. In Europe, the spot availability remains difficult. Suppliers hardly have any material available due to delays and relatively high demand. Shipments ex-China are delayed by 2 to 4 weeks. Prices in the US are slightly firmer as well. While prices FOB China are mostly stable. Prices for May/Q2 show a weaker tone compared to December levels. Most of Q1 is contracted by now and a small portion of Q2 as well.
Spot prices in several regions have become more stable now and even a bit weaker in terms of Q2 offers. For nearby, availability is not optimal in several regions and new material is arriving late ex China. Prices in China remain weak. Buyers are becoming more careful to look beyond Q1 and have adopted a more wait-and-see attitude. Only spot deliveries remain relatively tight. Q1 is mostly contracted, and a small portion of Q2 as well.
Due to extended production maintenance, belated new capacity, supplier price policies, and in some cases logistics issues, the market is slightly firmer in most regions. Although nothing significant so far. Price offers are for example firmer in the US and from some suppliers, they are firmer in Europe as well. Most of Q1 is contracted by now and several buyers have also contracted their early Q2 needs.
Recently, the tryptophan market in mainly Europe had turned bullish as supply had become tight from the main Western suppliers for EU allocation. But some relief is seen already and prices have mostly stabilised. It is expected that throughout Q1, supply will be reduced from a European-based supplier, and at the same time the export ex Asia to several main regions is expected to be disrupted due to the container situation. Prices FOB China are mostly stable. Prices in the US remain firm and availability also remains relatively tight. Most of Q1 has been contracted by now and a portion of Q2 as well.
Recently, for example in Europe, prices had gone up a bit in line with other amino acids. But the overall tone is changing to weak again in most regions. Also in the US, the tone is weaker again, after being stable for some time. Prices FOB China have started to decline further as well this week. Regions impacted by higher freight costs may still see a stable market but the overall trend is weak right now. Q1 is contracted and a portion of Q2 is as well.