US Witnessed March Amino Acid Price Hike, Next Month Projections Stay Elevated
US Witnessed March Amino Acid Price Hike, Next Month Projections Stay Elevated

US Witnessed March Amino Acid Price Hike, Next Month Projections Stay Elevated

  • 04-Apr-2024 4:28 PM
  • Journalist: Yage Kwon

The Amino Acids market in the United States experienced a weighty price hike throughout March 2024, influenced by factors such as improved demand dynamics, rising raw material prices, and economic upturn, including currency appreciation and strategic restocking maneuvers by market players.

Amino Acids find extensive use as food additives in the food and beverage industry, enhancing flavor, improving texture, and increasing nutritional value in products like sports drinks, protein bars, and fortified beverages. Amino Acids are also commonly included in animal feed formulations to ensure optimal animal health, growth, and productivity. A modest rebound in end-user production activity contributed to a resurgence in demand for Amino Acids as feed, allowing producing nations to destock their inventories at higher prices.

Despite a temporary slowdown in economic activity during Lunar New Year and Spring Festival celebrations, China, a significant exporter of Amino Acids to the U.S., swiftly resumed downstream operations. A surge in demand for various commodities including Amino Acids across various downstream industries catalyzed an upswing in regional and international inquiries for Amino Acids following China's post-holiday resumption of regular business.

Analysts in importing countries, primarily the United States noted that as of March 2024, the United States' seasonally adjusted manufacturing Purchasing Managers' Index (PMI) maintained a consistent trend. While the PMI remained above the 50 mark for the third consecutive month, it experienced a slight decline to 51.9 from February's 52.2, indicating a slightly less significant enhancement as the first quarter concluded.  In March, manufacturers experienced a robust and rapid increase in production, marking the highest growth rate seen in nearly two years. Improving demand conditions were reflected in the continuous increase in new orders for the third consecutive month. However, input costs surged, driven by higher prices of oil and raw materials, as well as increased transportation rates, leading to an uptick in inflation compared to February. These factors collectively contributed to sustained demand for commodities in various sectors including food, nutraceuticals, and a slight rebound in the livestock sector, keeping the offtakes for Amino Acids on the upper side.

Furthermore, the appreciation of the U.S. Dollar against exporting nations' currencies in March facilitated cheaper imports, exerting additional upward pressure on import quotations for Amino Acids in the region. However, the drop-in freight rates emerged as a notable factor impacting shipping costs, posing challenges to cost support for the Amino Acids market as traders benefitted from lower shipping charges compared to the previous month. Furthermore, this trend is expected to persist on the upper side, with demand surpassing supply, coupled with related port congestion affecting importing activities across the United States in forthcoming months, according to ChemAnalyst’s anticipation.

Related News

Global rise in Amino Acids prices is expected throughout the second quarter of 2024
  • 30-Apr-2024 2:51 PM
  • Journalist: Patrick Knight
Grace Enhances Fine-Chemicals and Contract-Manufacturing Facility in Michigan
  • 19-Mar-2024 3:01 PM
  • Journalist: Jai Sen
Navigating Amino Acid Price Escalation: January 2024 Dynamics of Demand and Trade Pressures
  • 02-Feb-2024 3:36 PM
  • Journalist: Jacob Kutchner
US Amino Acid Prices Likely to Continue its Optimistic Trend in November 2023
  • 09-Nov-2023 5:15 PM
  • Journalist: Xiang Hong