For the Quarter Ending June 2023
North America
During the Q2 2023, Amino Acid prices followed the market trend in India. The prices improved during Q2, but saw a sharp drop in early April, following the market trend in March. The price trend was supported by a steady decrease in domestic and overseas inquiries. In addition, retailers across the domestic market had surplus warehouse inventory that they had ordered in previous months during the epidemic. In response to the surge in demand, merchants that had higher stockpiles among themselves now had to sell their inventories at higher-than-expected prices to make up for their earlier profit losses. As Amino Acid prices started to improve towards the middle of Q2, they continued their upward trend until the end of Q2. The positive market trend of Amino Acid in the United States was further supported by a rise in the US consumer price index (CPI) from May to June, as reported by Statistics.
Asia Pacific
Amino Acid prices show an increasing trend throughout Q2 2023. Amino Acid values decreased sharply in April due to decreased demand and decreased offtakes predicted from both domestic and international markets. Domestic factories had low demand, upstream shipment pressure was high, and inventory remained high. This led to a continuous decrease in Amino Acid prices. As Q2 progressed, Amino Acid prices began to recover and remained on the high side until the end of June. As purchasing activity resumed, the market participants started to deplete their inventory first. Also in May, China's purchasing managers' index (PMI) for manufacturing increased from 49.5 in April to 50.9 in May 2023, surpassing market estimates of 50.3. According to the reading, China's manufacturing industry grew for the fifth straight month in May, further supporting the optimistic market trend for feed grade. However, the overall demand was balanced with sufficient supplies among the merchants as June concludes, In India and is expected to increase in the coming months at a healthy pace. This was mainly due to the announcement of EPPEN on June 8th, 2023, that it will close its bases in Heilongjiang, and Inner Mongolia, respectively, in June and July for equipment maintenance. This impacted the overall availability of a variety of end-products, including Amino Acid, in the domestic and foreign markets as increased demand for Amino acids led to decreased availability and affect the trade momentum across the region, resulting in a significant increase in its prices.
Europe
Throughout Q2 2023, Amino Acid values followed the market trend in Asia Pacific region across the whole European market. Amino Acid prices remained south side during April while they started to move to the south side as the month progressed. The decrease in the prices in April was mainly due to the consistent decrease in domestic demand, which resulted in a significant drop in import activities during April. The market participants also had higher inventories in this month, which balanced the overall Amino Acid demand side during April. As the month progressed, Amino Acid prices started to move to a moderate level in May, resulting in an increase in domestic enquiries. This price trend continued until the last weeks of June, supporting the upsurging market trend in the European Amino Acid market during May. The Consumer Price Index (CPI) in Germany increased by 6.1% compared to the previous year in May further supporting the optimistic market trend. additionally, the trade activity also resumed owing to higher domestic inquires which compelled the merchants to raise their inventories within the region.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw a decline in the values of Amino Acids. Early in January, prices showed an upward trend that was improved by an uptick in downstream demand from the end-user sector. Positive market sentiments were also influenced by the suppliers' and traders' limited supply until the last week of January 2023. Moreover, as February approached, the prices started to decline for Amino Acids with lessened trade activity supporting the weaker market trend. Furthermore, owing to a consistent drop in domestic demand and higher stockpiles among the market participants, the traders and suppliers pulled back their newer quotation to prevent loss aversion and focused on the destocking process.
Asia Pacific
Prices for Amino Acids decrease in the APAC region during the first quarter of 2023. In January 2023, with strong downstream demand from the domestic market, Amino Acid prices in the Chinese market saw an increase in pricing sentiment. Although the production started to rise significantly until the end of February, the rise in container logistics suggests that the downward trend has finally come to an end, which is encouraging for many players who export to foreign markets until the final weeks of January 2023. However, as February drew near, the prices started to decline considerably owing to a decrease in inquiries from both the domestic and international markets. With this, the prices for Amino Acid during March were assembled at USD 1887.8/MT in India.
Europe
As the first quarter of 2023 comes to a close, the price of Amino Acids fell in the European region. A decline in end-user industry demand weakened consumer confidence, and increased supplies were some of the factors that kept Amino Acid prices moving downward. Following a month-over-month decline in price, the price of Amino Acids showed an inclined price trajectory in January 2023. In Germany, the market trend for Amino Acids was supported by reduced inflation, logistic costs, rising energy costs, and increased consumer demand. As February approached, Germany's imports of various Amino Acids from Asia gradually decreased due to a significant decrease in downstream inquiries, which has led to higher supplies among domestic merchants.
For the Quarter Ending December 2022
North America
Prices for Amino Acids plunged in the last quarter of 2022, particularly in the United States market. As the fourth quarter got underway, prices skyrocketed due to a rise in demand for both foods- and feed-grade products. Due to growing inflation, numerous logistical challenges, and greater manufacturing costs in the exporting nation, prices increased during the first half of the fourth quarter. Additionally, prices began to progressively decrease in the middle of the fourth quarter because fewer inquiries kept the stocks at their highest levels later in December.
APAC
During the fourth quarter of 2022, Amino acid prices in the APAC area had a downward price trend. This pricing pattern was influenced by domestic market participants' large stocks and weak demand. The pricing also pointed to a decline in market sentiment in China, which was primarily sparked by rising stocks, a lack of demand from the downstream industry, and deteriorating meteorological conditions that resulted in heat waves, droughts, etc. Additionally, from the conclusion of the first quarter to December, prices in both APAC countries fell significantly. The cost of L-lysine hydrochloride in India, however, declined in the following quarter. Towards the end of the quarter, the prices for Amino acids were assessed around USD 1913.84 /MT for Ex-Hyderabad in December.
Europe
Prices for Amino Acids in the European region exhibited a decline in market sentiment during the fourth quarter of 2022. Due to rising energy prices and hindered trade activities, the price trend for Amino Acids was on an upward trend at the beginning of October. Following November, prices began to fall steadily, mostly because of a reduction in overseas orders, particularly from China's exporting countries. However, as a result of fewer or no queries due to the market's brief shutdown, prices at the close of this fourth quarter continued the trend of November.
For the Quarter Ending September 2022
North America
The third quarter of 2022 saw a declining trend for Amino Acid prices, supported by less downstream demand on the domestic market. Furthermore, China's zero covid policy has significantly impacted imports of L-lysine hydrochloride into the US. They exacerbated the weather in the early half of Q3, causing heatwaves, droughts, and flash floods. This stopped the trading momentum and helped the US market trend for L-Lysine Hydrochloride. A trend decline was also seen in the third quarter's h2 and h3.
APAC
During the third quarter of 2022, Amino Acid prices in the APAC area had a downward price trend. Weak demand and ample stockpiles among domestic market participants contributed to this pricing trend. During the first part of q3, prices in India increased by 2.06%. At the same time, the price indicated a downturn in the market mood in China, which was primarily brought on by increasing stocks, a lack of demand from the downstream sector, and worsening weather conditions that led to heat waves, droughts, etc. In addition, both APAC nations saw a sharp decline in prices from the end of the first quarter until September. However, it is projected that L-Lysine Hydrochloride prices in India may increase in the upcoming quarter. Towards the end of the quarter, the prices for Amino acids were assessed at around USD 2121/MT for Ex-Hyderabad in September.
Europe
In Germany's third quarter of 2022, the European market follows a similar pricing trend to the North American region, supported by uneven downstream demand from end-user industries. Additionally, less buying activity strongly supported the decreased price trend of L-Lysine Hydrochloride in the local market. Because of the decreased downstream direction from the customers, manufacturers have been hoarding amino acids. In addition, a decline in trading activity, the conflict between Russia and Ukraine, and stored cargoes had a negative impact on the trajectory of L-Lysine Hydrochloride prices.
For the Quarter Ending March 2022
North America
In Q1 of 2022, the domestic market trend of Amino Acid followed an upward trajectory across the North American region. The food and beverage industry saw large offtakes throughout the quarter on the demand side. In terms of supply, there were enough stockpiles to accommodate overall demand, as traders stocked up in anticipation of the Asian festive season shutting down the market. Throughout the first quarter, the US Amino Acid market was in limbo due to protracted port congestion and a disrupted supply chain from China owing to the CNY holidays. However, the high degree of Amino Acid consumption in the downstream businesses, on the other hand, provided a robust foundation. The discussions for Amino Acid in USA were assessed at USD1420 per MT in January.
Asia Pacific
During the 1st quarter of 2022, the prices of Amino Acid rose significantly across the Asia Pacific region on the back of the increased demand and consistent offtakes in the end-user industries. Amino Acid prices in China have been steadily rising for some time, as they were evaluated at USD970/mt FOB Qingdao in the month of January. International traders were experiencing a sharp increase in raw material costs, while the domestic downstream sector had been seeing strong offtakes. Furthermore, the local market was badly impacted by a production standstill in China due to high energy prices resulting from the Russia-Ukraine conflict. In addition, significant production facilities in China were temporarily shut down, hurting overall product supplies in the country. Ex-Hyderabad discussions for Amino Acid in the Indian domestic market in the month of March were assessed at USD1150 per MT.
Europe
In the European region, the price trend of Amino Acid hopped upwards in Q1 2022 as it followed the same market trend as the North America. The Amino Acid market in Europe showed favorable emotions as a result of the consistency in downstream offtakes. Increased raw material costs and a lengthy supply chain interruption from Asian countries, particularly Singapore and Japan, had a significant impact on the domestic market. Due to a scarcity of feedstock sources and high input costs because of the peaking energy crisis, domestic European producers were compelled to trade Amino Acid at slightly higher prices. In the second part of Q1, the Amino Acid market in Europe was further influenced by increased production costs due to high oil and gas prices amidst the Russia-Ukraine crisis. Amino acid prices in Europe were settled at USD1880/mt in the first month of the quarter.
For the Quarter Ending December 2021
North America
The prices of Amino Acids continued to hop upwards in the North American region on the back of the sharp increases in commodity and energy prices, labor shortages, freight charges, and the unprecedented spread of the coronavirus pandemic. The consumption volumes remained strong from the downstream food and beverages industry. Changing consumer habits as the end-clients increasingly demand full transparency about their ingredients, production processes, and supply chain is subsequently profiting margins in the US. The logistics issues and shortages of containers in China have further supported the price trend across the region.
Asia
In the Asian market, the pricing trend of Amino Acid witnessed an upward trajectory during the fourth quarter of 2021. In the Indian domestic market, the Ex-Hyderabad prices of Amino Acid escalated from USD 2355.58/mt to USD 2533.37/mt from October to December. Several Indian traders were battling with a steep hike in imported material cost while witnessing firm offtakes from the domestic downstream market. The production halt across China due to the shortage of coal has negatively impacted the Indian market, as several manufacturers were quoting out of availability for several Amino Acids. Additionally, several manufacturing units in China declared forced closure which affected the overall supplies of the product across China as well as in India.
Europe
The European market witnessed a hike in the Amino Acid prices in quarter four of 2021 amid persisting supply bottlenecks, rising commodity prices, and the emergence of the Omicron variant of the coronavirus. According to some recent surveys regarding European economic activity, the growth momentum remained weak at the start of Q4, in several sectors, owing to the above-mentioned supply bottlenecks. Skyrocketing shipping charges along with the shortage of containers further supported exacerbated the pricing trend of Amino acids in Europe.
For the Quarter Ending September 2021
North America
The prices of Amino Acids soared in the North American market during the third quarter of 2021 owing to its huge consumption in the food and beverages sector. The US market experienced mixed sentiments due to the delayed shipping of raw materials from Asia caused by the increasing cargo demand and shortages of containers in China. Increment in the shipping charges by more than 6 percent led to the steep rise in the prices of Amino Acids in the US. In addition, due to logistics problems, the time delivery to the US west coast increased from 3 weeks to 5-6 weeks, which further affected the Amino acid market outlook in Q3.
Asia
The Asian market outlook of Amino Acid witnessed an upward trajectory due to the increased demand from downstream industries in Q3 2021. A marginal surge in the prices of Amino Acid was observed during the third quarter due to the rising import cost. In China, the market recently encountered strict rules and regulations regarding the consumption of energy, which affected the overall output of Amino Acids of the country. The market price of Threonine rose, and the manufacturer's supply was tight. China’s threonine quotations stood around about USD1650-USD 1690/MT in September. Resolutely high freight rates under crippling container availability had further exacerbated the overall price scenario in the Asian Amino Acid market.
Europe
During the third quarter, there was an increment in the demand for Amino Acids in the European region backed by the domestic feed additive sector. Amino acid prices rose throughout the quarter in the market which was driven by the rising cargo demand and lack of containers from Asian countries due to the increasing shipping charges. Furthermore, delayed supply of raw materials from China hindered the Amino Acid market in Europe during Q3.
For Quarter Ending June 2021
North America
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
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.
Europe
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
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
