Amino acid markets are experiencing continued price volatility in 2024, driven by geopolitical tensions and higher freight rates. While many regions have secured contracts for upcoming quarters, spot prices for key products like methionine and threonine remain firm or rising. Buyers are taking a cautious approach as global supply chains adapt to shifting market dynamics.
In partnership with Feed Additive Prices
Lysine
Lysine prices are stable to firm, especially in the USA, while some European suppliers have adjusted to a higher, yet stable, level. In China, prices trend slightly higher, but changes compared to previous weeks are marginal. With urgent demand easing in most regions, many buyers have adopted a wait-and-see approach as they focus on fulfilling existing contracts. Container freight rates are expected to climb gradually due to ongoing conflict in the Middle East. Much of the Q2 and Q3 supply is already secured through contracts.
Threonine
Threonine prices continue to face upward pressure from Chinese manufacturers and rising FOB China rates. In most regions, local prices are steady at elevated levels post-Chinese New Year, except in the USA where the market remains particularly firm. Geopolitical tensions, increased production costs, and higher shipping rates have driven global prices up, although most buyers have already secured long positions, limiting further short-term demand growth.
DL-Methionine
Spot prices for DL-methionine are rising daily, with some offers doubling due to tight supply from traders. While many contracts for Q2 and part of Q3 were secured at lower prices weeks ago, geopolitical factors have disrupted raw material supplies in Asia. This has prompted a major Singapore-based manufacturer to declare force majeure, resulting in significant price disparities across regions; China and other Asian markets have seen dramatic price increases. If tensions persist and the force majeure continues, upward price pressure on methionine is expected to remain.
Tryptophan
Ahead of Chinese New Year, tryptophan saw heightened buying interest, fuelling an initial rebound in prices. Recent weeks have seen continued price increases and additional material secured for Q2 and Q3. Market sentiment is robust overall, with slight price gains across most regions amid ongoing geopolitical uncertainty.
Valine
FOB China prices for valine have strengthened, although global availability remains favourable. USA prices have also started to rise slightly, while in Europe prices remain firm for immediate volumes but have stabilized for later quarters as increased shipments from China and Asia improve supply. Contracts now cover Q2 and part of Q3 in most markets.
