Amino acid prices remain firm amid rising freight and energy costs, with suppliers aiming for further increases. Most buyers have already secured contracts into Q2 and Q3, resulting in quieter market activity. Geopolitical tensions and logistical challenges continue to shape the outlook.
In partnership with Feed Additive Prices
Lysine
Although new prices have not officially been offered yet this week by the main manufacturers, the tone is firm, and higher prices are expected due to the current situation in the Middle East. In particular, the container freight rates are expected to increase, weighing on the final CIF prices as well. Prices in the USA have recently firmed due to the uncertainty around the future anti-dumping implications, and suppliers are not keen to offer Chinese origin. In Europe, the market is expected to increase as well in the short term, but with Q2 and a portion of Q3 contracted already as well, buyers remain on the sidelines until now. In China, prices on a FOB basis have slightly increased. Suppliers try to increase further as there is cost price pressure, but there seems to be limited new demand.
Threonine
Although fresh prices have not been offered yet by all manufacturers this week, the general tone remains a bit firmer. With globally increasing oil prices and geopolitical tension, container shipping lines are starting to increase freight prices. So overall, the sentiment is bullish. At the same time, buyers in several regions have taken cover by now for Q2 and a portion of Q3 and are not, as such, having new demand, leading to a relatively quiet market feeling.
DL-Methionine
Recently, the dynamics have changed a bit due to current geopolitical developments in the Middle East, leading to higher oil prices. Energy prices are a significant component of methionine production costs, so it remains to be seen whether and how the methionine market will be impacted. At the same time, several suppliers were already less enthusiastic about offering and would like to see higher prices. Until now, prices have remained relatively stable, with a few exceptions in, for example, China and Europe, where small price increases were seen. Most of Q2 is contracted already, and although several buyers are interested in looking into covering Q3, suppliers are not yet offering for that specific period.
Tryptophan
Prices recently firmed, as suppliers were not happy at all with the loss-making price level that has been reached. Before CNY, a lot of forward cover has been taken, in some cases well into Q3. The market is therefore mostly quiet now and well contracted. Suppliers do have a strong desire still though, to increase further.
Valine
Especially in Europe, spot, Q1, and Q2 prices remain firm. One of the main non-Chinese suppliers had significant supply chain delays, and that has depleted stock in Europe. China is catching up on filling that gap, but the speed at which it is doing so is at a slow pace, as Chinese suppliers would also like to see higher prices. Buyers have initially remained on the sidelines as they expected the increase to be short-lived. But recently, forward cover has been taken for Q2 and even a portion of Q3.
