For Quarter Ending June 2021
Amino Acid prices skyrocketed this year, as the demand from feed additives segment remained firm enough to drive its consumption. Prices primarily increased due to expensive cargoes of raw materials from Asia, especially from China. In USA, prices of Amino Acid started declining in the third week of April, supported by improved feedstock availability. However, major producers in USA revealed that the prices of Amino Acid remained volatile due to frequent fluctuations in the Asian market. In addition, high freight cost and critical shortage of shipping containers also provided additional burden over the prices during this timeframe.
Asia encountered an overall boom in demand for Amino Acid during Q2 2021. Manufacturers based in China revealed that they received massive enquiries from both domestic and international market, and thus operated their plants on high capacity. On the other side, demand in Indian market remained high as the domestic feed additives sector remained bullish throughout the quarter. Despite the off season, demand for Amino Acid from domestic feed additive sector remained high due to high demand for poultry meet in India, under influence of the ongoing pandemic in the country. Therefore, prices of Amino Acid rose from USD 2057/MT to USD 2203/MT within the quarter.
European Amino Acid sector showcased bullish sentiments throughout the quarter, thus the prices remained effectively high in the timeframe. The demand was majorly driven by domestic feed additive sector. Major reason behind this price rise was expensive cargoes from Asian countries due to the fuming freight cost and shortage of shipping containers across the prime trade routes. In addition, fluctuations in demand from the Asian market also remained a major concern for European traders, who were restraining from any loss in this volatile situation.
For the Quarter Ending March 2021
Global rise in the prices of Amino Acids changed the market dynamics of the entire North America. Owing to firm demand from the domestic feed additives market, imports from China and other countries remained strong during the first quarter. Experts suggested to divert the imports of key materials like corn and soya to South America rather than buying from the domestic market at premium prices, to improve margins amidst surging market conditions. This prompted prices of Amino Acids like Lysin and Threonine to pick up across the region during this timeframe. Amino Acids are used in a wide variety of pharmaceutical and nutritional applications. Rising demand has fetched considerable margins to the regional producers.
The Asian market witnessed a boom in its Amino Acid prices with the supply side largely pressured amidst stable demand. Due to global feedstock shortage and high prices, major Amino Acids producers encountered difficulties in production. Qiqihar Longjiang Fufeng Biotechnologies Ltd. in China faced difficulties in production after the Lunar New Year holidays, as the feed market started booming again and they struggled to keep their production levels on peak. In addition, high freight prices further affected the prices of traded products and put extra burden on prices, like in the Indian market, price rose from USD 1860/MT to USD 2024.6/MT during Q1 2021.
The European market reported an upsurge in the prices of Amino Acid Lysin and Threonine amidst strong demand from the domestic feed additives sector. Shipping delays, high demand in China and logistical disruptions including longer delivery times at several European ports have been cited as key reasons for sharp price increases observed in several amino acids in Europe. Traders also indicated towards a lack of offers from most Chinese suppliers during Q1, while stocks available within Europe were available at increased prices amidst firming sentiments from the feed additives sector.
For the Quarter Ending December 2020
Demand for Amino Acid remained firm in Asia Pacific region. Import of Amino Acid and its derivatives in Q4 2020 has increased by 16.80 percent compared to Q3 2020 in Japan. Continuous rise in demand of Amino Acid is also observed from China and South Korea. However, the demand from other APAC counties was moderate. L-Threonine 98.5% feed grade was traded at 940-1200 USD /MT across the APAC region. The prices of L-Threonine 98.5% feed grade have gradually increased in APAC region by 3-4% compared to the last quarter. Daesang Corporation, one of the major producer of Amino Acid and its derivatives, reported rise in export in Q4 2020, compared to Q3 2020. The consumption of Amino Acid is anticipated to increase in Q1 2021 which will fuel the prices of Amino Acid and its derivatives.
Prices of Amino Acid witnessed a V-shaped recovery in European region during Q4 2020. The price of Amino Acid in December 2020 increased by 2% compared to October 2020. The market sentiments have improved in Q4 2020 compared to Q3 of 2020. The exports from Turkey have risen by 93 percent compared to last quarter. France, United Kingdom, Lithuania, Switzerland, Spain and Russia reported increase in export compared to Q3 2020. The price of Amino Acid is anticipated to increase in Q1 2021 due to rising export and recovery in market across the globe.
Surge in demand for Amino Acid is observed in Canada, while the demand from USA has declined in Q4 2020, and the export from USA has increased in Q4. The prices in USA have declined by 3-5% respectively compared to Q3 2020. Upward price trend was witnessed in Canada with 4% increase in December 2020 in comparison to November 2020. Mixed demand was observed in North America, while Mexico reported surge in demand in September and December 2020, while the imports from USA increased in the country. However, a decline in import from China was observed. The prices of Amino Acid in North America witnessed a mixed trend and are expected to become stable in coming months.