Amino acid prices are rising globally, driven by higher input costs, geopolitical risks, and increased freight rates. Despite supplier push for higher prices, many buyers have already secured Q2 and Q3 supply, resulting in quieter spot markets. Contract coverage for Q2 and much of Q3 is strong across most regions.
In partnership with Feed Additive Prices
Lysine
The supplier market in China is heating up significantly this week, influenced by the Middle East situation and continuously higher corn prices in China. There is a strong desire amongst suppliers to increase the price further. At the same time, a lot of buyers already secured Q2 and Q3 material before CNY or have done so recently, leading to an overall relatively quiet buyer market. Container freight rates have gone up for several trade lanes, mostly driven by additional risk fees, although a lot is still being shipped via South Africa and not via the Middle East. Overall, Q2 and a large portion of Q3 are already contracted.
Threonine
FOB China prices have again increased this week, and the supplier market continues to heat up. Like lysine, the geopolitical situation, cost price pressure, and increasing freight rates are leading to higher prices in several regions. Also, threonine has seen buying activity already before CNY, and in the past 2 weeks, some activity was seen as well. Although some regions have been hesitant and want to observe the market further, most buyers have taken forward cover by now for Q2 and in several cases Q3.
DL-Methionine
As raw materials for the chemical production process of methionine have been restricted in parts of Asia due to the geopolitical situation, a large methionine manufacturer in Singapore has declared force majeure. This is now leading to relatively large price differences in the various regions. For example, in China and other Asian regions, the price of DL-Methionine has gone up significantly, and with Q2 not being contracted yet, the situation is tense. In Europe and the USA, there was already some decent forward cover, and the contract prices have been much lower over there, relatively speaking. If the war continues in the Middle East and the force majeure situation stands, the tension on methionine will likely remain intact.
Tryptophan
There has been a rather significant buying round going on before CNY, when prices already started to rebound. But very recently, prices have started to move up further, and more material has been secured for Q2 and in some cases Q3. Although not all suppliers are willing to offer for Q3 yet. The tone is currently firm, and prices in most regions went up a bit on average.
Valine
FOB China prices have become firmer as well, although availability should be good. Prices in the US have even softened a bit this week. Prices in Europe are still firm for additional Q1 and Q2 volume, but for further away they have become more relaxed as availability increased with new (and delayed) shipments underway ex China and Asia. Q2 and a portion of Q3 have been contracted by now.
