Anti-dumping rulings in Europe as amino acid demand slows globally

Following the announcement of final anti-dumping rates in Europe, amino acid markets have entered a notably quiet phase. With demand lagging across regions and summer holidays underway, prices remain stable to slightly weaker. Q3 is largely contracted, while Q4 shows varied progress.

Highlights:

Lysine: Market remains calm following the announcement of EU anti-dumping (AD) rates on Chinese product. Global demand is weak, stocks are high, and prices FOB China declined slightly. Summer holidays are expected to prolong the quiet period.
Threonine: After some Q4 buying activity, the market has quieted down. Prices FOB China remain very low and mostly stable. Combination sales with lysine HCl haven’t boosted demand.
DL-Methionine: Prices recently stabilised after earlier increases. Suppliers are in maintenance periods and cautious with offers. Some price softening has occurred due to weak demand, especially in Europe.
Tryptophan: The market has stabilised after a long price decline. Suppliers are reluctant to accept current low prices, though some limited discounts are still offered.
Valine: Provisional EU AD rates on Chinese valine were lower than expected. Prices are adjusting, with a minor gap between Chinese and Western origin. No significant buying surge observed.

In partnership with Feed Additive Prices

Lysine

Since the final AD rates have been announced in Europe, for Chinese origin, the market has remained very calm, and no additional volume was contracted. Not only in Europe, but also in other regions, the demand is behind, and stock levels are relatively high. Prices FOB China have gone down slightly this week, after a period of stable prices in recent weeks. As summer holiday periods are starting in Europe and the USA, a further quiet period is expected. Q3 is fully contracted and a small portion of Q4 as well.

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Threonine

After some buying for Q4 recently, the market has become quiet. FOB China prices are mostly stable, in some cases a cent weaker, at a very low price level. Some suppliers have turned to combination-sales tactics with lysine hcl, which has not been very successful as the demand is simply not there right now. Prices in most regions are stable at a low level. Q3 and a good portion of Q4 have already been contracted.

DL-Methionine

Recently, prices have been stable, after a period of price increase. Most suppliers are in or around plant maintenance periods and are not really interested in offering or they maintain the same or higher prices. But as demand is not really there right now, some suppliers are also adjusting prices a bit downward to test the market. This has led to slightly softer prices in, for example, Europe. Q3 is fully contracted, but Q4 is still mostly uncontracted.

Tryptophan

The tryptophan market currently reflects a quiet atmosphere, displaying signs of stabilisation after a prolonged decline. Manufacturers are increasingly resistant to the prevailing low price levels and are less inclined to make offers. Although some suppliers seeking to offload stock continue to provide discounts, these are accompanied by relatively low volumes. As a result, Q3 contracts are largely secured, and a portion of Q4 has recently been finalized as well.

Valine

Last week, the EU announced the provisional anti-dumping rates for Valine originating from China. Percentages were not as high as expected. Market prices now need to settle, and right now there is still a small spread between Chinese and Western origin, with Chinese being cheaper. The market did not react so far in terms of increased buying activity. In other regions, the market is very quiet and mostly stable in price, although still at a relatively low price level. Q3 is well contracted.