Amino market update: Lysine hcl prices stay low amid global oversupply

The amino acids market remains under pressure, with prices for key products like lysine, threonine, and methionine at low levels. Rising freight costs and weak demand are adding strain, while buyers remain cautious ahead of Q3. (Update week 22)

Highlights:

Lysine: Prices remain very low and move in a stable to weak trend across regions. US prices have recently stabilised after declines, and a significant portion of Q3 is contracted. In Europe and China, prices are weak with many buyers adopting a wait-and-see approach.
Threonine: Chinese suppliers have announced slight price increases amid rising freight costs, but the market remains quiet.
DL-Methionine: European prices have risen slightly for new Q3 business, driven by multiple manufacturers increasing prices and upcoming plant maintenance. In the US, tariff concerns have eased due to a 90-day pause in trade actions. FOB China prices had a brief firmer period but are stable again.
Tryptophan: Prices have stabilised at low levels after recent declines. Supply is ample, though some Chinese producers have stopped offering due to unprofitability. Q2 is mostly contracted; limited Q3 coverage.
Valine: Prices are stabilising at low levels in China, while weakening in the US In Europe, Chinese-origin products have dropped significantly in anticipation of anti-dumping actions, creating a wide price gap with non-Chinese origins. A large share of Q3 is already contracted.

In partnership with Feed Additive Prices

Lysine

FOB China prices have remained stable this week, compared to previous weeks, however, at a very low price level. Manufacturers indicate they are struggling to make a margin, and some are below the cost price level now. Prices in the USA have also declined significantly recently, but show a more stable tone this week, and a significant portion of Q3 has been contracted 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 in some regions, like Europe and China, but buyers have a strong wait-and-see attitude still.

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 in an attempt to move away from the very low FOB China prices. At the same time, container freight rates are going up for June and July shipments ex China to the USA and to Europe. The market has not reacted yet and is still very quiet. Q2 and a good portion of Q3 are already contracted.

DL-Methionine

For example in Europe, methionine prices have increased slightly for new Q3 business, as several manufacturers have been increasing their prices. Traditionally, plant maintenance periods will come up in the coming months. 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 in the current 90-days trade tariff pause. FOB China price had a recent slightly firmer period, but that is stable again now. Q3 is partially contracted.

Tryptophan

In the recent period, prices appear to have stabilised following a notable decline, with price levels remaining low across all major regions and supply plentiful. However, some Chinese manufacturers have ceased offerings, citing an inability to generate profit margins at the current price point. Contracts for the second quarter are in place, along with a limited portion of the third quarter.

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.