The US L-Taurine market continued to decline through the first half of November, following the sharp drop in October as oversupply, low consumption and strong Asian imports created a bearish environment. Market sentiment remained soft as distributors, formulators and importers were cautious in their procurement and relied heavily on existing inventory and delayed new bookings expecting more declines. Early November was marked by stable production in major Asian hubs, which ensured uninterrupted exports and kept the US market well supplied. West Coast logistics were smooth and added to the domestic abundance and buyer power in negotiations. On the demand side, steady but uneventful consumption in nutraceuticals, functional beverages and pet nutrition couldn’t offset the surplus and there was no support for prices to recover. Buyers used the oversupply to push for deeper discounts and sellers struggled to generate any offtake. With domestic distributors focused on inventory management and formulators avoiding forward commitments, the US L-Taurine market was down through mid-November.
The L-Taurine market in the US continued to fall through the first half of November, extending the sharp drop in October as bearish fundamentals ruled the market. Throughout the period, L-Taurine demand from key downstream sectors was soft, Asian suppliers were flowing in and US distributors were cautious. With overall procurement only matching near term needs, the L-Taurine market in the US moved into a buyer’s market where suppliers couldn’t get any traction.
In early November, the oversupply was more evident and L-Taurine in distribution channels was more than enough to meet current consumption. L-Taurine production rates in major Asian manufacturing hubs normalized so exporters could maintain steady shipping and there was no tightness that could support prices. As freight into the US was uninterrupted, each new cargo arrival added to the already saturated L-Taurine market. This steady supply of material gave domestic buyers the confidence to ask for more concessions knowing the competition among sellers was fierce. The cumulative effect was a clear downward trend for L-Taurine where sellers were in a market where buyers were prioritizing negotiation power over volume.
Supply side dynamics made the L-Taurine market even weaker. Chinese producers continued to run at stable levels despite global demand being soft, with favorable cost and streamlined export. This meant Asian origin L-Taurine was present in the US market and there was no room for American distributors to buy or stockpile. Exporters tried to reinvigorate the market with price cuts but with abundance of product, it was not effective. Trade was not urgent, and the market’s structural imbalance continued to widen as buyers had no reason to accelerate their purchasing cycle for L-Taurine. For many suppliers, clearing inventory became the top priority and the discount driven environment continued to weigh on the entire L-Taurine value chain.
Demand side was not helping, nutraceutical, energy drink and pet food manufacturers were conservative in their procurement. Although L-Taurine consumption was stable in these industries, it was not enough to balance the supply. Formulators were drawing from previous month inventory, reducing offtake, and extending replacement cycle. Even with steady utilization in functional beverages and pet nutrition blends, the market was still weak in restocking and forecasting. As November progressed, purchasing teams were monitoring the market softness and were waiting for further decline before they would contract more. This collective caution kept the L-Taurine market soft and left sellers with no room to recover.
According to market sources, L-Taurine prices will continue to decline as US demand is soft and distributors are working through inventory. Asian L-Taurine suppliers are still sending adequate amount of product and buyers are negotiating aggressive price, limiting any upside for sellers.
