Valine Prices Show a Pessimistic Trend in USA and Europe at the End of June 2023

The market trend of Valine in both the North American and European regions mimicked the previous month's trends. The downward price trend of Valine for both feed and food grade was attributed to several factors that include a persistent drop in domestic and international inquiries and low production rates, which flagged the way for widened demand-supply gap resulting in the current price trend. However, a declining trend in the prices of Valine was observed, majorly due to declined demand for the product from the major importing country, mainly China.

As per the sources, China and India are considered the two largest producers of Valine globally. In recent months, both countries have increased their production of Valine due to increased necessity from the dietary supplement and animal feed industries. This has led to a surplus of Valine in the global market, which has put downward pressure on prices. Moreover, upstream Soyabean continued to slide down. One primary reason is the abundance of Soyabean stocks in the domestic market and its soft demand, resulting in a negative trend. Additionally, higher soybean production has contributed to the increase in supply, putting further downward pressure on its prices.

Additionally, China's exports contracted again in May in US dollar terms. Imports remained sluggish, leading to a weakening manufacturing process. Likewise, the exports will continue to slow in the coming months, but it is expected that the overall export to continue outperforming those in other Asian economies. Imports will increase slowly in the coming quarters, but it is still projected that China will serve as a major engine of global demand this year.

Parallelly, the prices of Valine in the European region also continued to remain on the lower side throughout June 2023. There has been a consistent increase in the supply of downstream Valine in recent months due to new production facilities coming online in exporting nations and increased production from existing facilities. This has led to decreased prices for various end products, such as Valine, across the region. Additionally, merchants and suppliers had to lower their prices for collected inventories of Valine for both feed and food grade to balance their profit margins.

As per the ChemAnalyst Analysis, "it is anticipated that the prices of Valine might rise in the coming months in both European and North American countries as the demand from domestic and international markets may increase moderately. Furthermore, end-user markets are expected to witness a positive market attitude and might focus on raising their stock levels".