Amino acids market sees China lysine prices near record lows

Lysine prices from China are nearing historic lows, adding pressure to a global amino acids market already strained by high corn costs and weak demand. This update looks at the latest price movements and market sentiment across key amino acids. (update week 21)

Highlights:

Lysine: Prices have declined slightly but are approaching potentially unsustainable levels due to high Chinese corn costs and low FOB China prices. US and European prices remain weak.
Threonine: Some Chinese suppliers have raised prices slightly due to rising corn and freight costs, but the market remains quiet.
DL-Methionine: Market remains stable in both Europe and the US, with good availability. Potential tariff concerns have eased. FOB China prices are steady after a brief uptick.
Tryptophan: Prices have stabilised after a significant drop. Supply is abundant, and some Chinese producers have stopped offering due to unprofitably low prices.
Valine: Prices have stabilised at low levels in China; other regions also show weakness. European prices for Chinese-origin valine have dropped sharply due to anti-dumping expectations, creating a wide gap with non-Chinese sources.

In partnership with Feed Additive Prices

Lysine

FOB China prices have made a small step downwards again this week, but the speed of decline is now very limited, and manufacturers are struggling to make a margin, and some are below the cost price level now. Although a bit of relief is seen, the high Chinese corn prices continue to weigh on the fermentation costs, and in combination with the historic low FOB China prices, it is not a sustainable situation. Prices in the USA have also declined significantly recently. Prices in Europe are weak as well. Despite the very low FOB China prices and the increasing container freight costs, the local prices in Europe do not react and remain weak. A significant portion of Q3 still needs to be contracted, but buyers have a strong wait-and-see attitude.

AMINO ACID PRICES: Here the market prices of 3 important amino acids are tracked – check it out…

Threonine

Some threonine suppliers in China have now announced slight price increases as the recent higher corn prices in China have led to cost price pressure. At the same time, container freight rates are going up in June and July. The market has not reacted yet and is still very quiet. Q2 and a good portion of Q3 are already contracted.

DL-Methionine

Methionine prices in Europe are very stable, and availability seems fine. Traditionally, plant maintenance periods will come up in the coming months, but no anticipation is seen on that yet by market participants. By the time that methionine in the USA could be affected by new potential import tariffs, the USA started their discussion with China, and things have already cooled down. So all in all, the market has stayed relatively calm and stable in the USA. FOB China price had a recent slightly firmer period, but that is stable again now. Q3 is partially contracted.

Tryptophan

Since this week, prices seem to have stabilised after a period of significant decline. Price levels in all major regions are low at the moment, and supply is ample. Some of the Chinese manufacturers have stopped offering now, as they indicate there is no margin to be made at the current price level. Q2 is contracted and a small portion of Q3 as well.

Valine

After a period of price decline, the FOB China has started to stabilise, although at a very low price level. Prices in other regions, like the USA, have recently weakened as well. In Europe, the Chinese origins have shown a significant price decline, anticipating future anti-dumping implications. The price spread with non-Chinese origins is therefore significant. A large portion of Q3 is already contracted.