Lysine hcl manufacturers continue to try to increase their prices, with some success. Corn prices have been firmer in China, putting pressure on the cost price of fermented amino acids. Demand is not strong though. Learn more in this week’s feed additives snapshot (week 33).
The threonine market has gone very quiet and prices have become stable recently. Methionine seems to have stopped declining for now and manufacturers are very keen to stop the decline and even try to increase the price. Spot prices are a bit firmer now compared to some weeks ago in Europe. But in the USA the price remains relatively weak. Tryptophan is firmer in the USA, but until now mostly stable in other regions. Valine stable to weakish.
Vitamin E has firmed somewhat over the summer. All manufacturers are under maintenance and also have announced price increases. That has worked to a certain extend. Although new contracts are often offered with a fall/baisse clause still. Vitamin A market is still the same, quiet and low priced. Vitamin B3 is stabilising in several regions, although at a higher price level compared to earlier this year. D-Calpan is weaker in several regions. The overall vitamin market remains very quiet.
Both corn and soy prices have been firmer recently in China and that has led to more theoretical lysine demand and to firmer lysine prices, from a manufacturer point of view. But in reality, the new demand for lysine hcl is not super strong and although prices have firmed recently, the momentum for further increase is not really there yet. In Europe, the 2023 import volume contingent for 0% duties is potentially running out already in early Q4, if the speed of imported volumes remains the same as the first half of 2023. By now, most of Q3 and a decent portion of Q4 are contracted, and even some Q1 2024 cover is seen.
A few months ago the prices for threonine went up, at that time coming from a very low level. After that, momentum was lost and forward cover was taken and prices started to slowly decline again. But over the summer things have stabilised and prices have stayed the same for some weeks now. The market is very quiet and there seems to be no interest right now to book the remainder of Q4 or further.
Strong resistance from manufacturers to decrease prices further and over the summer several price increase announcements were seen. So far that did put the decline to a stop and recently spot prices in Europa and Asia firmed a bit. Prices in the USA remain weak though. It is quiet, prices are relatively stable to slightly firmer and end-users are contracted ahead for the coming period. Most of Q3 is contracted some time ago already and some minor interest for Q4 recently.
Bit firmer market for tryptophan in the USA, spot availability was not as good as expected, and that recently led to higher prices. Other regions remain stable so far, although there is an ongoing desire of manufacturers to increase prices. Q3 is well contracted and as prices are relatively low, buyers took a bit Q4 cover as well.
Strong desire from manufacturers to increase prices and some Chinese manufacturers have indicated they will start increasing prices soon, due to higher cost prices of raw materials. Until now though, the market feels stable to weakish in almost all regions. Prices are relatively low and have decreased compared to several weeks ago. New capacity from traditional suppliers has been introduced step by step, not disturbing the balance too much. More new capacity will follow in 2023-2024. Q3 is largely contracted, and in some cases, some Q4 cover has been taken as well.
Recently the market has become a bit firmer. For a long time, suppliers have had the desire to increase prices, but the market conditions have not been supportive. With most manufacturers under maintenance currently, a recent price increase announcement did have some effect, and prices in some regions increased and triggered some forward buying. The market has turned calm again it seems. Q3 is well contracted and a portion of Q4 as well.
Static market and again no changes are seen compared to previous weeks. The recent communication of a major vitamin A manufacturer about their plans to restructure their operation due to a depressed market and low prices did not have any impact on the day-to-day business and market so far. Q3 and a portion of Q4 are contracted by now. The market is quiet and the price is relatively stable, at a low level.
A mostly stable market, with some fluctuations every now and then, for example in Europe. But overall the market is quiet and weakish, and prices remain low. Q3 is mostly contracted but there is still a more wait-and-see attitude towards Q4.
Some regional differences are seen in terms of price spread, but overall the market is stable to weakish. New capacity is coming online in 2023-2024, while the demand remains behind still compared to previous years. There is a decent contract cover for Q3, but some buyers also continue to buy hand-to-mouth as they expect even lower prices.
Bottom line the market remains firmer compared to earlier this year. Raw materials remain tight and expensive, but at the same time, the market is also a bit more relaxed and relatively well contracted ahead. Prices remain firmer but also show a more stable tone now. A portion of Q4 is still to be contracted.