For the Quarter Ending March 2023
North America
The prices of Methionine in the North American region witnessed depreciating market sentiments throughout the first Quarter of 2023. At the termination of Q1 2023, prices of Methionine were assessed at USD 2775/MT Feed grade CFR New York and USD 4720/MT Food grade CFR New York with an average quarterly decline of 3.25% and 1.71%, respectively. The cost of raw materials declined for both the feed and food grade markets, which had an impact on production costs and, ultimately, on domestic market pricing. The demand for both grades was steady in January, but as February got underway, the market position was significantly impacted by the offtake from both the local and foreign markets. Additionally, since the market participants were left with ample stocks and inventories, this droves them to cut their quotations in order to sell off the existing goods. Additionally, the North American region saw significant reductions in freight and transportation costs, which further accelerated the downward trend.
Asia
The prices of Methionine in the Asia Pacific region witnessed mixed market sentiments throughout the first Quarter of 2023. At the termination of Q1 2023, prices of Methionine were assessed at USD 2465/MT Feed grade FOB Shanghai and USD 4465/MT Food grade FOB Shanghai with an average quarterly decline of 2.31% and incline of 0.50%, respectively. For both the feed and food grade markets, the prices of raw materials decreased, which influenced the production cost, and eventually, the prices decreased in the domestic market. The demand for both grades was consistent in January, but with the commencement of February, the offtake from both the domestic and international markets negatively influenced the market situation. Also, as the market players left with enough stocks and stockpiled inventories, this propelled them to lower their quotations to clear out the existing stocks.
Europe
The prices of Methionine in the European region witnessed depreciating market sentiments throughout the first Quarter of 2023. At the termination of Q1 2023, prices of Methionine were assessed at USD 2580/MT Feed grade CFR Hamburg and USD 4670/MT Food grade CFR Hamburg with an average quarterly decline of 2.82% and 1.36%, respectively. The cost of raw materials declined for both the feed and food grade markets, which had an impact on production costs and, ultimately, on domestic market pricing. The demand for both grades was steady in January, but as February got underway, the market position was significantly impacted by the offtake from both the local and foreign markets. Additionally, since the market participants were left with ample stocks and inventories, this droves them to cut their quotations in order to sell off the existing goods. Additionally, the European region saw significant reductions in freight and transportation costs, which further accelerated the downward trend.
For the Quarter Ending December 2022
North America
In the North American region, primarily the United States market, the prices of DL-methionine plummeted during the final Quarter of 2022. With the commencement of the fourth quarter, the prices decreased considerably as the demand for both food and feed grade declined. In the fourth quarter of 2022, DL-methionine continued to drop, with CFR New York prices for food and feed grade settling at $4990/MT and $3070/MT, respectively, in December. Enough inventories among the market players and domestic merchants supported the market situation in the fourth quarter of 2022. The prices for food grade improved at the termination of Q4 2022 with the rise in demand from the downstream sector.
Asia
The prices of Methionine in the Asia Pacific region, majorly in China, demonstrated mixed market sentiments throughout the last Quarter of 2022. Although, in October, the prices for Methionine inclined significantly following November 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 Methionine on the lower side. With the ending of the fourth quarter, i.e., in December, the prices of Methionine inclined again with a settlement at USD 4410 /MT FOB Shanghai Food Grade.
Europe
Following a downward trend over the fourth quarter of 2022, the CFR Hamburg negotiations for Food grade and Feed grade Methionine in Germany were resolved at $4880/MT and $2820/MT, respectively, in the month of December. The on-and-off port restrictions in China made the business climate in Europe worse, together with the unrest in Russia and Ukraine. On the demand front, offtakes in the end-user industries during this quarter ranged from modest to stable. Additionally, this quarter witnessed a continuous lackluster demand from the feed sector. On the contrary, the market situation for food grade improved with a slight rise in the inquiries from the end-user sector.
