Threonine suppliers continue to try to increase prices. Resistance is now building up on the buyer side to pay the current relatively high prices. Wait and see attitude now mostly for Q4 buying. Learn more in this week’s feed additives snapshot (week 24).
Lysine hcl is pretty stable, slightly higher maybe than some weeks ago, but overall calm and well contracted ahead. The incident in Russia at a lysine factory may have impact on the S&D, although stock levels in Russia are said to be okay for the coming period. Methionine has become very quiet in several regions, after a recent buying round for Q3. The US continues to buy mostly spot/monthly. Tryptophan is firmer in China, but not in other regions so far. Valine is very calm and prices are weakening.
Next week the CPHI Shanghai will be held and all vitamin manufacturers will be present. It will be interesting to see if any changes in the trend will be discussed and/or initiated. Vitamin E and A no changes and stable to weak for a long period of time now. Vitamin B3 remains firm in the spot market, although it is getting quiet and calm again in some regions. Buyers continue to monitor closely if their existing contracts at low prices will be executed on time and in full. Vitamin B2 shows a firmer tone in China and the US. Other regions remain stable. Vitamin D3 and d-calpan are weakish.
Lysine hcl markets are still active in some regions for Q3/Q4 buying but have become quieter now. There is an ongoing desire from manufacturers to increase prices and move away from the low price level, but it is not easy. Some capacity was taken out in Russia and potentially the Chinese suppliers will fill that gap, leaving other regions with less material. But that also depends on the existing stock levels locally in Russia, which are said to be sufficient for the coming months. 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. 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.
Threonine suppliers continue to try to increase prices. Last week several price increase announcements were done and now this week no offers are made at all. In the meantime, prices in China and Europe have increased, also contract prices for Q3 are higher than Q2. But for example in the US prices remain stable. There is a stronger and stronger wait-and-see attitude seen, as prices have firmed rapidly and the normally quiet summer period in some key regions is starting anytime now. The still expected significant new capacity of one of the main Chinese manufacturers, seems to have gone a bit to the background as a subject of conversation. Q3 is mostly contracted by now.
After a recent buying round for Q3 in several regions, the market is now calm again and the wait-and-see mode has returned. In those regions, spot prices have become higher than several weeks ago. Other regions have not contracted fully for Q3 and have a more spot-buying approach. Prices are stable right now in all regions.
No significant changes are seen compared to previous weeks. Prices FOB China remain firm(er), but no impact is seen really on/in other regions. Prices remain stable there. A good portion of Q3 is contracted in most regions.
A softer market and declining prices in most regions. Demand is behind and new material is coming on the market from one of the main suppliers. Also, a main Chinese supplier is turning a threonine factory around to produce valine. At this moment the market is relatively calm. Some transactions are seen for spot, but nothing unusual. A decent portion of Q3 is contracted.
Slightly weaker prices are seen in several regions, compared to previous weeks. Especially traders continue to sell off material at a discount, leading to a price decline. Manufacturers on the other hand try to keep prices at least stable or increase them, without significant effect so far. But the bottom line, the market remains quiet and weakish at this moment. The market is contracted for a decent portion of Q3.
Vitamin A continues to follow the same trends as it has in previous months. Meaning stable to weak at a very low market price. Some buyers have concluded long-term contracts into late Q3 at these low price levels, while others also work partly on a spot price/delivery basis. 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. A decent portion of Q3 is contracted.
Slightly weaker prices are seen in some regions. The market is very quiet and well contracted ahead into Q3. Sellers try to move unsold material. The spot price in Europe has slightly weakened recently. Market prices in general are still at a very low level. The regulation around the import of vitamin D3 500, made of animal origin (components) is now more clear going forward.
The market continues to be firmer in China and prices have increased again this week on a FOB China basis. In other regions, some firmer prices were also seen, but material was contracted already well into Q3. Several producers and suppliers have been trying to move the price up from the low level and some of them have even stopped offering. It seems to be working finally, leading to higher prices, in a few regions like China and the US. Europe is still stable.
The market remains weak and prices have been coming down again recently in most regions. None of the manufacturers seem to step up until now, to stop the decline. The priority seems to keep market share. Although they are not happy with the current low market prices. There is a decent contract cover for Q3, but some buyers also continue to buy hand-to-mouth as they expect even lower prices.
The vitamin B3 market remains firm and relatively active, although in some regions it is getting quieter again. A lot of longer-term contracts have been concluded, but the focus is now on contract execution and the availability of product to fulfill those pending contracts. Most end-users already have contracted a big portion of Q3 and even Q4 at a mix of the low prices of some weeks ago and at the recent/current higher prices.