Looming Feedstock Prices and Supply Constraints Pressurized the Methionine Prices in the U.S
- 27-Sep-2022 4:55 PM
- Journalist: Bob Duffler
Methionine prices have been showcasing an upward trajectory in the U.S. on the back of the unprecedented heatwaves, which have negatively impacted the country's feedstock and Petrochemical sectors. Methionine suppliers were already facing a raft of post-pandemic manufacturing constraints, now facing the adverse consequence of Ukraine Russia conflict. The prices of Methionine are increasing due to rising demand from the feed and food additives market.
The major Methionine producers in the U.S. market are struggling to meet the requirement of consumers, prompted by skyrocketing energy prices. Furthermore, Russian gas cuts affect the Petrochemical market, keeping the robust dynamics. Methanol prices also persisted bluntly with strong market sentiments and insufficient product availability. The weather conditions in the North American region is also led to tight supply concerns in specific local markets. Transportation costs play a significant role, depending upon the shipping area. Rising freight rates prompted traders to revise their price quotations further.
In the U.S., higher inflation and rail strikes brought vulnerability to the market's supply side. Elevated feedstock prices and high purchasing appetite in the domestic market brought about a disturbance in market dynamics. Moreover, Due to the low operating rates and high production cost, the value of Methionine increased in the U.S. market owing to the increasing natural gas prices. They delayed the loading and unloading of supplies, causing port congestion followed by labor unrest affecting the Methionine market value in the U.S. Moreover, the coastal supply is affected by the delay in destocking the containers in the port affected the supply chain.
As per the ChemAnalyst database, the price trajectory of Methionine has expected to continue following the upward trend in the following months. The increase in offtakes from the feed and food additive industries with low inventories in the global market is predicted to raise the product's market price due to sluggish operating rates.