For the Quarter Ending December 2022
North America
North American region, primarily the United States market, the prices of Arginine plummeted during the final Quarter of 2022. With the start of the fourth quarter er, the prices increased considerably. The prices witnessed an increment during the first half of the fourth quarter due to rising inflation, numerous logistic issues, and higher manufacturing cost in the export country. Additionally, prices began to drop progressively in the middle of the fourth quarter because fewer inquiries kept the stocks at their highest levels later in December. Also, with ease in inflation and other logistics, the prices decreased in the month of December.
Asia Pacific
The prices of Arginine in the Asia Pacific region, majorly in China, demonstrated mixed market sentiments throughout the fourth quarter of 2022. Although, in October, the prices for Arginine inclined considerably. Following November, the official manufacturing purchasing managers index (PMI) fell to 48.0% in November, slipping well below last month's reading of 49.2, along with reducing inquiries that kept the prices of Arginine on the lower side. Also, lowering end-user sector demand and enough inventories among the market players further supported the market trajectory in the APAC region. Ease in strict zero covid policies also kept the market situation feeble towards the end of Q4 2022. Towards the end of Q4 2022, the price of Arginine was recorded at USD 5554/MT.
Europe
Prices for Arginine in the European region showed a see-saw tendency in the fourth quarter of 2022. In the first two months of Q4, the demand for Arginine in the downstream pharmaceutical industry was seen to be steady. The supply chain was impacted by the continuous port congestion and supply disruption in the European region, which forced an increase in pricing. High freight costs were another factor in Arginine's upward trend. Due to the impending holiday season, European retailers have decided to refill their stocks in large quantities. However, because of existing stocks and declining end-user sector demand in December, prices declined. Towards the end of Q4 2022, the price of Arginine was recorded at USD 6139/MT.
For the Quarter Ending September 2022
North America
The third quarter of 2022 saw a decline in the market trend for Arginine, with CFR Los Angeles values dropping from $6250/mt to $5940/mt from July to September. Because of China's zero-covid policy, imports of several amino acids into the US were heavily restricted, Arginine. Due to the heat wave and a power shortage, several Chinese industrial facilities were forced to shut down in the second half of Q3, which had a detrimental impact on US business. The nation's declining demand was attributed to a number of issues by various businesses and experts, including inflation, supply shortages, and the country's high-interest rates.
Asia
In China, with FOB Shanghai values falling from $6080/mt to $5700/mt from July to September, the market trend for Arginine in the Asia Pacific area showed a negative tendency. This pricing pattern has been influenced by a number of factors, including fluctuating raw material costs, sluggish consumer spending, and weak end-user sector demand. Due to the slow offtakes and weak downstream demand during the first half, big suppliers delayed making significant orders. Following the shutdown, various manufacturing facilities, including Vega Pharma, Prumix, and others, were undergoing maintenance when the markets reopened in the last week of July. This had an influence on the product supply for both domestic and foreign suppliers throughout the second half of the quarter. Extreme weather and economic factors have also negatively impacted the market dynamics in China this quarter.
Europe
In the German domestic market, the CFR Hamburg negotiations dropped from $6180/mt to $5770/mt from July to September 2022, continuing a decreasing trend over the third quarter. In addition to the upheaval in Russia and Ukraine, the on-and-off port restrictions in China exacerbated the already challenging economic environment in Europe. Furthermore, this quarter saw a weak demand from the food and feed sectors. Offtakes in the end-user industries for the demand during this quarter ranged from low to stable.
