Methionine has again become calm after a period Q3 active contract booking in some regions, which was initiated by price increase announcements. Learn more in this week’s feed additives snapshot (week 22).
Lysine hcl is active in some regions for late Q3 and some Q4 contract booking. Mostly driven by low and stable FOB China prices, but also by some recent currency exchange rate movements. Threonine has gone quiet again in most regions and there is a wait and see attitude amongst buyers, watching to see if the recent price increase will stick. Tryptophan is said to be a bit firmer, but no significant change seen. Valine is very calm.
Price increase announcements and/or plant maintenance announcements are not having any impact on the vitamin A and E market. Those markets remain in a calm and stable/weakish trend. Vitamin B3 remains firm in the spot market and buyers are observing if their long term contracts will be executed on time and in full. Vitamin B2 shows a bit firmer tone in for example China and the US.
Lysine hcl markets have become active in some regions. Stable FOB China prices for some time now, at a low level, have triggered buyers to assess risk and in some cases take forward contract cover for late Q3 and into Q4. In Europe, the euro has weakened somewhat against the US$, which has led to some buying as well. Others still have a wait-and-see attitude as availability seems fine and there is still a typically weaker summer period ahead in some regions.
During the recent price increase, several buyers booked contracts for Q3. Prices FOB China have been firming in the last couple of weeks and now seem to stabilize again. But also in some regions, the local price has increased by now. All manufacturers are offering and holding on to these relatively higher FOB China prices for June and July shipments. The market feels very calm and quiet again now and there is a strong wait-and-see attitude now among buyers, who want to see if this increase will stick. Q2 is contracted fully and a good portion of Q3 is contracted as well, on average.
Until last week the market has been active in several regions, as most suppliers had either increased their prices or stopped offering, in an attempt to stop the price decline. That has worked for now, as prices stabilised, at an even higher price level than it was in previous weeks, and most of Q3 was contracted. The market has now turned quiet again in most regions and seems to go back to the wait-and-see attitude for further development. Q2 was already contracted and now Q3 in several regions is contracted as well.
A bit firmer market is seen in China, as prices have been too low for a long time now and it is said to be an unsustainable business. If higher prices will be supported on the demand side, is still to be seen. Other regions remain stable so far and no changes seen in the market conditions. Q2 and a portion of Q3 are contracted in most regions.
At this moment the market is relatively calm. Some transactions are seen for spot, but nothing unusual. The maintenance period that was announced by one of the main Chinese suppliers did not have any impact so far on the market prices. One of the main suppliers is returning to the market and another main supplier will come with more capacity later this year. Q2 and a portion of Q3 are contracted.
One of the main Chinese vitamin E manufacturers has recently announced a price increase for vitamin E 50%. Prices have declined slowly but surely in 2023 and manufacturers are trying to break that trend. But at the same time, several traders and blenders continue to offer relatively small volumes at a discount, in order to move stock, leading to lower spot prices. In general, the market is very quiet and mostly contracted for Q2 and a portion of Q3. There is still a wait-and-see attitude for longer-term business, as the demand in some regions is still behind and so far there don’t seem to be any availability issues.
Recently, one of the main Chinese manufacturers has announced a price increase for vitamin A 1000. No reaction from the market seen until now. The market continues to move between periods of stable prices and then a bit weaker again. Although no significant decline is seen anymore. Seems that all market participants are in a wait-and-see mode right now, with manufacturers trying to move the price back up, but without success so far. Q2 is contracted and a portion of Q3 is as well.
During the recent more volatile market in March and April, some decent volumes were contracted ahead in several main regions. This led to price stabilisation and even firmer prices in some regions like Europe. Right now the market seems very calm and prices are stable mostly, although still at a low level. The supply/import worries are not entirely over yet in the EU. Q2 and a portion of Q3 are contracted.
Several producers and suppliers have been trying to move the price up from the low level and it seems to be working finally, to a certain extent, in a few regions like China and the US. The market has been a bit more active in those regions and some cover was taken into early Q3, although conservatively. In other regions, it remains quiet and buyers are already well contracted for Q2 and with a decent overlap into Q3.
After a period of price decline, the market seems to have a more stable tone now in most regions. The d-calpan market feels very quiet and slow and quiet though. Manufacturers are not happy with the current low market prices, but they also do not want to lose their market share. It is still mostly traders offering lower prices in order to move their stock out. There is a decent contract cover for Q2 and early Q3, but some buyers also continue to buy hand-to-mouth as they expect lower prices.
Vitamin B3 continues to have that firmer tone. By now a lot of longer-term contracts have been concluded. The focus is now on contract execution and the availability of product to fulfill those pending contracts. The market feels quieter now compared to several weeks ago but with that firmer tone to it in most regions. Most end-users already have contracted Q2 and a big portion of Q3 (even Q4).