For the Quarter Ending December 2022
In the North American region, primarily the United States market, the prices of Lysine Hydrochloride plummeted during the final Quarter of 2022. With the start of the fourth quarter, the prices increased considerably as the demand for both food and feed grade inclined. Further, 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. Further, following the mid-q4, the prices started to decline gradually due to fewer inquiries which kept the inventories on the upper end later in December. With this, the cost of Lysine Hydrochloride witnessed was assembled at USD 3390/ MT CFR New York food Grade.
The prices of Lysine Hydrochloride in the Asia Pacific region, majorly in China, demonstrated a mixed market sentiment throughout the last Quarter of 2022. Although, in October, the prices for Lysine Hydrochloride inclined significantly 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 kept the prices of Lysine Hydrochloride on the lower side. With the ending of the fourth quarter, i.e., in December, the prices of Lysine Hydrochloride inclined again with a settlement at USD 2750 /MT FOB Shanghai Food Grade.
During the fourth Quarter of 2022, the prices of Lysine Hydrochloride showed descending market sentiments in the European region. At the start of October, the price trend for Lysine Hydrochloride was observed on the upper side on the back of soaring energy costs and disrupted trade activities. Following November, the prices started to decline gradually, primarily due to a decline in international orders, notably from exporting nations from China. However, towards the end of this fourth quarter, the prices followed the trend of November on the back of lesser or no inquiries because of a temporary market closure. With this, the cost of Lysine Hydrochloride witnessed during q4 was recorded at USD 3060 CFR Hamburg in Germany for Food Grade.
For the Quarter Ending September 2022
The prices of L-Lysine Hydrochloride witnessed a decremented trend throughout the third quarter of 2022, backed by weakened downstream demand in the domestic market. Furthermore, L-Lysine Hydrochloride's imports into the US were primarily affected by China's zero covid policy. They worsened climatic conditions such as heatwaves, droughts, and flash floods in the first half of q3, which halted the trading momentum, positively supporting the market trend of L-Lysine Hydrochloride in the United States. Additionally, declining trends were observed during h2 and h3 of the third quarter. Moreover, towards the termination of Q3, the prices for L-Lysine Hydrochloride showcased were assessed at USD 3768/MT CFR New York.
In the APAC region, the prices of L-Lysine Hydrochloride witnessed a declining price trajectory during the third quarter of 2022. This price trend was supported by weak demand and sufficient inventories with the domestic market participants. In India, the prices went higher by 2.06 percent during the first half of q3. At the same time, the price demonstrated dulled market sentiments in China, which was majorly due to higher inventories and no demand from the downstream sector, along with the worsened climatic conditions, which resulted in drought, heatwaves, etc. Moreover, the prices dropped significantly in both the countries of the APAC region towards the end of h1 till September. However, in India, it is anticipated that the prices of L-Lysine Hydrochloride might incline in the upcoming quarter. With this, the price for L-Lysine Hydrochloride was assessed at USD 2130/MT FOB Shanghai in China.
The European market mimics a similar price trajectory as the North American region during the third Quarter of 2022 in Germany, backed by unbalanced downstream demand from end-user sectors. Additionally, weakened buying activities significantly supported the decremented price trend of L-Lysine Hydrochloride in the regional market. The reduced downstream direction from the customer's side led to the stockpiling of stocks of L-Lysine Hydrochloride with the manufacturers. Besides that, a decrease in trading activities, the Russian-Ukraine war, and stockpiled cargoes negatively impacted the pricing trend of L-Lysine Hydrochloride. Furthermore, towards the end of q3, the prices displayed for L-Lysine Hydrochloride were settled at USD 3240/MT CFR Hamburg in Germany.