Amino acid markets are showing mixed trends, with prices for lysine and valine firming while threonine, methionine, and tryptophan remain weak. Supply issues and contract coverage are shaping activity, as buyers and sellers respond to changing market signals.
In partnership with Feed Additive Prices
Lysine
Since last week, FOB China prices have slightly firmed, and suppliers are not willing to lower their prices any further right now. January shipments are mostly fully booked, and in February there will be limited activity due to the Chinese New Year. Some suppliers, therefore, only offer for the March shipment. At the same time, one of the main Asian (non-Chinese) suppliers is said to be facing significant delays in its shipments to various regions. The market has reacted in some cases by taking on a bit more Q2 cover. Prices are very low, so the risk is manageable. Q1 and a decent portion of Q2 are contracted now.
Threonine
Prices continue to weaken step by step and are now historically low on a FOB China basis. There is still sales pressure it seems. Buyers have become a bit more careful as they expect similar initiatives as they see with lysine, with a slight price increase or stop offering. The market is very quiet at the moment but is observant for potential action. Q1 is contracted, but Q2 is still mostly open.
DL-Methionine
Both the powder and the liquid material show a slightly weaker tone in several regions. Demand is decent, but not high enough to keep the prices stable, and therefore some price decline is seen now in, for example, China and Europe. At this moment, Q1 contracts are under discussion.
Tryptophan
Despite the strong resistance of manufacturers to reduce the price further, there is too much material available, and prices continue to be weak. The market is very quiet and buys only a few weeks or months ahead, but no long positions are seen at the moment. A good portion of Q1 is contracted.
Valine
Some tightness is still seen in several regions. After a long period of price decline, stocks had fallen very low. One of the main non-Chinese suppliers has some issues with availability, and therefore, some shortages are now seen in the market. Although Q1 is mostly contracted by now, prices remain firmer for both spot business and Q1/Q2 business. Longer term, significant additional supply is expected to come online, though. For now, the market is firmer, and Q1 has been contracted.
