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Supply Disruption Prompts the L-Threonine Values in Germany

Supply Disruption Prompts the L-Threonine Values in Germany

Supply Disruption Prompts the L-Threonine Values in Germany

  • 29-Sep-2022 12:18 PM
  • Journalist: Harold Finch

CFR Houston: The price trend of L-Threonine in the German Market is witnessing an upward trajectory backed by unparallel heatwaves, which have impacted the country's demand and supply activities. The Suppliers of L-Threonine are facing the availability of the downstream product from the exporting countries owing to the pandemic situation and post-pandemic conditions, including Geopolitical tension between Russia and Ukraine. Further, rising demand for its derivatives, such as Soybean meal, supports the higher values of L-Threonine in Germany.

The Suppliers of L-Threonine in the German market are struggling to meet the requirement of consumers as the import momentum from China (a major exporter) halted, leading to a shortage of stocks in the market. Also, the heightened energy prices and Russian gas cuts affected the overall market dynamics of the Petrochemical, agricultural, Pharmaceutical, and food industries. Moreover, the Sticker shock experienced by the potential Buyers and traders was another factor that positively supported the price trend of L-Threonine in Germany as the production cost surged significantly.

Additionally, Germany's imports of L-Threonine occur partially from other European regions by road. The ongoing trade disruption and higher road freight costs have been affecting its shipment across Europe concerning the values of L-Threonine. Supply chain disruption is persisting,  along with more than 2% of all global shipping capacity standstill outside Germany's North Sea ports. According to the latest Kiel Trade Indicator, this Congestion continued to climb in September at Bremerhaven and Hamburg, where about 19 container vessels are waiting to unload.

Besides that, according to market experts, various oil plants in Tianjin will be shut down on a large scale on the upcoming National Day, which is likely to frighten the purchasing factors among the traders. Owing to this, the traders in other regions started to stockpile their stocks according to the requirements, which will also boost their prices in the upcoming months.

According to ChemAnalyst, "L-Threonine prices in Germany will continue to surge steadily in the upcoming months. Also, it is expected that the European region's current condition will not improve until the supply and logistical problems are solved. Which might boost the market of L-threonine also".

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