Arginine Prices Likely to Go Northwards in February 2023 on the Back of Rising Feedstock Costs

CFR Hamburg: Recent data indicate that after a dip in the price trajectory in December 2022, the Arginine prices were on an optimistic trend in January 2023 and will continue to showcase the same throughout the first quarter of 2023. Arginine prices in Germany will significantly rise due to a better trade relationship with China and rapidly increasing consumer confidence. Arginine prices in Germany increased markedly by 3.71% till February and are expected to rise more in the upcoming months.

At the beginning of the first quarter of 2023, Arginine prices in Germany started to rise as a result of several factors. Global economic and market conditions are still challenging the state of agricultural and livestock production in the US. High input costs, supply chain interruptions, moderate inflation, extreme weather occurrences, and Russia's conflict with Ukraine have all contributed to a rise in commodity prices above historical averages. Corn prices have been impacted by the Ukraine war situation, and rising prices of feedstock Corn will likely influence the prices of Arginine. Corn production has increased to 11% to meet the rising demand. The pandemic's impact on domestic usage and Canada's move to green fuels both impacted Arginine's trajectory. Over the next ten years, there is expected to be an increase in the production and exports of beef, chicken, and pork.

The price of Arginine rebounded during this month due increase energy prices and high production rates, as reported by the sources. The high rate of inflation and the growing cost of living in Germany led to an increase in consumer expenditure.

According to ChemAnalyst, there will be a further increase in demand for Arginine since orders may increase in the upcoming months. New manufacturing initiatives will also result in higher production rates. Restocking domestic market stocks will also probably influence the trade in a favorable manner.