US opens anti-dumping investigation into Chinese lysine
The US has launched an anti-dumping probe into Chinese lysine, prompting concern across amino acid markets. While some buyers have responded by stockpiling, overall demand remains weak. Broader market sentiment is cautious as Q3 contracting progresses slowly. (Amino acids market update week 23).
In partnership with Feed Additive Prices
Lysine
The USA has launched an anti-dumping investigation into all lysine products manufactured in China, with a proposed anti-dumping duty of approximately 197%. While some buyers have begun stockpiling material, overall demand remains sluggish, resulting in a lack of significant market response thus far. FOB prices from China have held steady this week at persistently low levels, with manufacturers reporting challenges in maintaining profit margins, and some operating at a loss.
European prices are similarly weak. Despite historically low FOB prices from China and rising container freight costs, prices in Europe remain stable to weak. A considerable number of Q3 contracts remain unfulfilled in regions such as Europe and China, but buyers are adopting a cautious, wait-and-see approach.
Threonine
Some threonine suppliers in China had announced slight price increases in an attempt to move away from the very low FOB China prices. However, the main trend has now stabilised. At the same time, container freight rates are going up for June and July shipments ex China to the USA and Europe.
The market has not responded significantly, though there have been some additional Q3 purchases and initial interest in Q4 volumes. Q2 and a substantial portion of Q3 are already contracted.
DL-Methionine
In Europe, methionine prices have seen a slight increase for recent new Q3 business, driven by several manufacturers raising their prices. In the USA, methionine prices have remained stable in recent weeks, despite potential disruptions related to tariff discussions. The FOB China price experienced a brief firming but has since stabilised. Most Q3 contracts are now booked.
Tryptophan
Recent trends indicate that prices have stabilised following a significant decline, with overall levels remaining low across major regions and supply remaining ample. However, some manufacturers in China have suspended their offerings due to difficulties in achieving profit margins at current price levels. Contracts for the second quarter are secured, along with a limited number of agreements for the third quarter.
Valine
After a period of price decline, the FOB China has started to stabilise, albeit at a very low level. Prices in other regions continue to weaken, particularly for Chinese-origin product. In Europe, the Chinese origins have shown a significant price decline, anticipating future anti-dumping implications. The price spread with non-Chinese origins therefore remains significant. A large portion of Q3 is already contracted.
