In the last weeks the markets for Lysine and threonine have been firmer and in China that remains. But in other regions the market seems to stabilise now. Methionine is firmer in several regions for spot business, as availability is tight. This has also triggered some Q4 interest. Whether or not momentum can be kept is unsure. Tryptophan is still relatively stable in Europe, but firmer in the USA and parts of Asia. Learn more in this week’s feed additives snapshot (week 37)
Further price decline can be seen for D-Calpan. And also for vitamin B3 and B2, although not as fast as d-calpan. Vitamin E is mostly stable, with a major supplier not offering currently. Vitamin A relatively stable, to even slightly weak again, as one of the major suppliers is on track with their new/additional capacity which came on top of the existing supply. Other vitamins are mostly static to weakish. Especially vitamin K is weak. Cholin chlorid showed some potential to go up due to raw material costs, but the demand is not there to support that.
Although Chinese manufacturers have an ongoing desire to increase prices further, they are struggling to get volume sold outside of China. Buyers have become careful as prices have quickly increased over the last few weeks. Some suppliers do not offer and others remain at a stable and higher price level with their offers. Shipments for export are now only available for November and December, FOB China. In Europe, the 300,000 tons import quota at 0% import duties, will run out in a few weeks from now. After that, it will be 6.3% until the end of the year. Nothing official is known yet for 2024 import duty quota. Q3 is contracted and most of Q4 is as well. Some Q1 2024 cover was taken some weeks ago and at this moment bits and pieces.
One of the main Chinese manufacturers is introducing their expanded capacity volume on the market in a very controlled way. And often sold in combination with other amino acids. The market is still stable to firmer and some suppliers do not even offer right now. The actual buying activity in the market is pretty low at the moment, wait-and-see attitude. New shipments ex China are still possible for October. There is still a decent portion of Q4 that needs to be contracted in several regions.
The market in for example Europe is firmer as suppliers are either not willing to offer or increase prices. Some activity was seen for Q4 because of that. But basically, there has not been a significant reaction from buyers until now. Spot prices have firmed though. For Q4, suppliers are more willing to offer but there is until now resistance to lower prices further compared to today’s market price. A portion of Q4 is contracted, but the majority still needs to be covered.
Except for Europe, tryptophan is still firm in other regions, like the USA. Either nearby availability is tight and/or there is a strong desire from manufacturers to increase prices. There are some local capacity expansion plans though, but it may take some time for them to kick in. In Europe, things are stable and relatively calm. At this moment there seems to be more chance of a nearby bullish market rather than a weak market. A good portion of Q4 has been contracted by now.
The overall valine market still feels somewhat firmer, especially for spot prices. But on the other hand, buyers are still careful to cover forward Q4 fully. In China, the market is still pretty active and prices of valine have slightly increased for the Chinese domestic market. Export prices have remained stable, but if the current high raw material costs continue, export valine prices may go up as well. In Europe, the price for Chinese material already increased a bit and it remains to be seen what Western sources will do. In the USA the market is stable after a recent decline in price. Q3 is contracted and only a small portion of Q4 until now.
The market for vitamin E is very calm and in case of inquiries, the manufacturers are offering a price that is at the high end of the range. One of the main manufacturers has recently stopped offering. But traders and blenders are offering prices that are slightly below the official market prices, in order to move material. The price trend is currently stable in most regions. Q3 and a portion of Q4 is well contracted.
One of the main manufacturers is now on track with their new and additional production. However this has not affected the market so much. Vitamin A 1000 has been low-priced and nothing really has changed. It feels very quiet and there is actually decent contract cover ahead as buyers do not expect further significant price declines.
The market feels very quiet and the price remains very low. Some buyers have contracted ahead into Q4 as they feel stocks in general are low and changes may happen at any time and the price risk is manageable. Other buyers have a more spot buying approach as they see no upside potential in the coming period. Q3 is mostly contracted, some overlap into Q4, but there is generally a wait-and-see attitude towards Q4 contracting.
The market is starting to show a weaker trend now. Earlier this year prices were going up and then over the summer things cooled down and stabilised and even weakened slightly. But in China especially the supply seems to be ample and prices are coming down. It does not translate yet to other regions like Europe or the USA. Q3 and a portion of Q4 is well contracted.
The price decline has been significant in the last weeks, and not only FOB China, also in other regions prices are constantly adjusted downwards. The market prices are getting low again, in terms of historical price movement. Wait and see attitude and not a lot of action seen, mostly bits and pieces of spot buying. Cover for Q4 is still limited in most regions.
After a period of price increase earlier this year, the prices in most regions currently have been weakening. Although there is a lot of resistance from suppliers to lower prices, the day-to-day market does show a factual price decline. Many buyers have contracted vitamin B3 already some time ago for Q3 and Q4. Although a portion of Q4 still needs to be covered, but buyers indicate that they are not in a hurry. And at the same time, sellers try to maintain a stable price.