For the Quarter Ending March 2025
North America
The North American Valine market in Q1 2025 is characterized by a supply-demand imbalance, with demand notably exceeding supply for feed grade variants, while food grade demand shows a modest upward trajectory.
Limited production capacity and weakened inventories, compounded by rising freight costs and currency fluctuations, have constrained trade flows, particularly between Asia and the region. Despite these pressures, increased imports have bolstered supply, leading to a generally balanced market with stable demand patterns and cautious inventory management as the quarter progresses.
In the USA, Valine prices declined by 1.41% from Q4 2024 to Q1 2025, averaging $2,123/MT during the current quarter with a relatively flat intra-quarter trend. This stability reflects a balance between strong feed grade demand surpassing supply and increased imports enhancing availability. Freight cost fluctuations and currency volatility continue to influence import prices, while subdued end-user inquiries suggest a cautious near-term outlook with prices expected to remain steady yet slightly pressured.
Asia Pacific
The APAC Valine market in Q1 2025 is characterized by a complex interplay of supply and demand factors. While increasing global meat production supports higher feed-grade L-Valine consumption, supply constraints from raw material shortages and production bottlenecks exert upward pressure on prices. However, abundant inventories and subdued regional inquiries have created a loose supply-demand balance, prompting traders to focus on inventory clearance at discounted rates. The market sentiment remains cautiously optimistic but tempered by transitional trading hurdles and logistical challenges, leading to a generally muted trading environment as the quarter progresses.
In China, L-Valine feed grade prices declined by 4.81% from Q4 2024 to Q1 2025, averaging 1881 USD/MT during the quarter. Monthly prices exhibited a relatively flat trend, reflecting stable production amid consistent demand. Price movements were influenced by limited raw material availability, elevated manufacturing costs, and cautious buyer behavior amid sufficient merchant inventories. The overall market trend in China is mildly bearish, with expectations of continued inventory-driven price corrections in the near term.
Europe
The European Valine market in Q1 2025 is characterized by sustained elevated prices driven by persistent demand from key end-user sectors such as livestock and poultry feed. Supply constraints, exacerbated by higher feed corn costs and logistical challenges, have tightened availability, prompting importers to build excess inventories. While freight conditions have stabilized, ongoing global shipping cost pressures and regulatory disruptions continue to influence trade dynamics. Market sentiment remains cautiously optimistic, with expectations of a gradual price correction as inventory levels normalize toward mid-year.
In Germany, Valine prices declined by 2.36% from Q4 2024 to Q1 2025, averaging USD 2,068 per metric ton. Monthly prices exhibited a relatively flat trend throughout the quarter, reflecting a balance between sustained demand and supply-side pressures. Elevated feed corn costs and limited domestic production underpin price volatility, while importers' inventory accumulation has driven short-term price surges. The overall market outlook is stable to mildly bearish, with anticipated downward pressure entering Q3 as stocked inventories are cleared.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Valine market, particularly in the U.S., experienced a mixed trajectory influenced by supply-demand imbalances and global market dynamics. Feed-grade Valine saw consistent price declines throughout the quarter due to oversupply and reduced procurement activity, as key buyers leveraged existing inventories.
Food-grade Valine initially faced downward pressure, with major end-users delaying purchases. However, November brought an upward price trend for food-grade Valine, driven by strong demand from the health supplement and fortified product sectors, alongside rising production costs linked to higher corn prices and supply limitations from exporting regions.
By December, food-grade Valine prices fell sharply as stable quotes from Chinese suppliers, coupled with efforts to clear inventories, reduced urgency among U.S. buyers. Softer feedstock prices and muted domestic consumption further reinforced the price decline across both Valine grades, exacerbated by limited spot buying and weaker international demand. Additionally, hesitancy from domestic clients to commit to new projects amid anticipated policy changes under the Trump administration contributed to a pessimistic outlook. Despite these challenges, manufacturers increased employment, though reduced capacity utilization and cautious purchasing signaled ongoing market headwinds. Overall, Q4 2024 marked a challenging period for the U.S. Valine market with minimal signs of recovery.
APAC
In Q4 2024, China's L-Valine market experienced a mixed trajectory, with feed-grade Valine continuing its downward trend, while food-grade Valine saw significant fluctuations. October witnessed a sharp decline in both feed and food -grade Valine prices, driven by lower feed ingredient prices (corn and soybean meal) and weak overseas quotations. This resulted in elevated inventories and subdued market activity, with suppliers adjusting prices to move stock, benefiting end-users with more affordable food. However, the decline in feed-grade Valine was offset by robust demand for food-grade Valine, which witnessed a significant upward price trajectory due to strong rebound from the pharmaceutical and nutraceutical sectors in November 2024. While at the same time, the Market conditions were further impacted by geopolitical factors, including potential U.S. tariff changes and China’s currency adjustments, which led to aggressive destocking and discounted pricing concerning the feed grade. Moreover, with a significant rise in downstream consumption both from the regional and overseas market, traders focused on clearing their inventories at a higher price thereby benefiting them in terms of sales and heightening profit margins. However, as Q4 concludes, the prices dropped considerably for food grade and buyers remain cautious, limiting purchases to immediate needs, which has intensified price competition among suppliers for the entire month, resulting in a significant price drop. While that of feed grade, the market continued to remain weak with traders mainly engaged in destocking practices. Overall, the market remained on the southerly side for feed grade while demonstrated a positive trajectory for food grade with respect to the fourth quarter of 2024.
Europe
In Q4 2024, Germany's L-Valine market exhibited a continued divergence between the feed-grade and food-grade segments. The feed-grade Valine market remained weak, with prices declining due to sustained low demand from the livestock and poultry sectors. Economic pressures and reduced consumption in neighbouring states further exacerbated the downturn, while global supply-chain disruptions added to the challenges. On the other hand, the food-grade Valine segment showed resilience, experiencing steady price increases driven by stable demand for food additives and ingredients, alongside strategic inventory management by suppliers in November. In December, both grades saw a consistent decline in prices, reflecting broader regional market weakness. This decline was primarily attributed to global oversupply, driven by excessive pre-holiday stockpiling, which led to a significant supply-demand imbalance. As a result, suppliers in both segments were forced to implement price corrections and promotional strategies to manage elevated inventories. Lastly, the logistics disruptions at major ports, such as Rotterdam and Hamburg, had minimal impact on market sentiment, while cautious purchasing behaviour and muted activity in the livestock sector contributed to the overall bearish market outlook for feed grade while a positive trajectory for food grade witnessing a balanced supply-demand side.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Valine market, particularly in the USA, experienced a significant upward pricing trend, driven by various supply-demand dynamics. Key factors influencing this surge included robust demand across major sectors, disruptions in the supply chain caused by ongoing trade disputes, increasing freight costs, and fluctuations in feedstock prices. Suppliers struggled to maintain adequate inventory levels due to a surge in bulk procurement orders, especially from prominent exporting regions. This intensified pressure on the already constrained supply chain, resulting in tighter availability and driving prices higher.
On the production side, while feedstock costs remained relatively low, reducing overall production costs, the depreciation of the U.S. dollar against the Chinese yuan and other currencies led to higher import prices. Despite these cost advantages, the ramp-up in production was slower than anticipated, limiting the influx of new inventory and maintaining a tight market. Additionally, the anticipation of potential tariffs on Chinese goods ahead of the U.S. presidential election caused importers to stockpile L-Valine in an effort to mitigate potential price increases, further straining supply chains.
Although shipments gradually resumed, the inventory inflow remained modest, and market volatility persisted. The convergence of bulk purchasing, inflationary pressures, and supply chain disruptions created a challenging market environment. By the end of Q3, L-Valine Feed Grade was priced at USD 2425 per metric ton (CFR New York), while L-Valine Food Grade reached USD 3630 per metric ton (CFR New York), reflecting a continued upward pricing trend amidst a volatile market backdrop.
APAC
In Q3 2024, the Valine market in the APAC region experienced a marked uptrend in prices across both feed and food grades, driven by several key factors. Global demand surged, particularly from sectors such as food, beverages, cosmetics, and pharmaceuticals, significantly influencing price increases. This demand spike was further amplified by seasonal preparations for winter, prompting manufacturers to adjust prices upward while meeting the needs of international buyers. Enhanced logistical operations and improvements in supply chain efficiency supported export activities, contributing indirectly to price escalations. Despite efforts by amino acid producers to stabilize the market by raising quotations, the supply-demand imbalance persisted, exerting upward pressure on prices. In China, where the most pronounced price movements were recorded, the combination of reduced production sentiment, lower manufacturing volumes, and increased unit costs contributed to substantial price hikes. The market, however, showed volatility in the food-grade segment, with prices declining at the start and end of the quarter. Nonetheless, overall market sentiment remained optimistic, as active trading of higher-priced goods continued throughout the period. By the end of Q3, the L-Valine Feed Grade FOB Shanghai price had settled at USD 2165/MT, while the L-Valine Food Grade FOB Shanghai price reached USD 3380/MT, reflecting a consistent upward pricing environment despite periodic fluctuations, driven by strong international demand and supply-side constraints.
Europe
Throughout Q3 2024, the European Valine market witnessed a significant uptrend in prices concerning both feed and food grade, with Germany experiencing the most pronounced changes. Several key factors influenced the market dynamics during this period. A continuous surge in demand from various industries, coupled with limited supply due to disruptions and plant shutdowns and maintenance within the key producing nations created a tight market environment. Rising production costs, supported by the limited availability of the feedstock corn, further pushed prices upwards. Supporting this further, the appreciation of the Euro against the dollar added to the cost pressure, impacting import prices. Seasonal trends also played a role, with the approaching holiday season driving bulk procurement activities and increasing international demand across the feed and food including nutraceuticals sectors additional continued to support this upward trend. Overall, The correlation between these factors led to a continuous increase in prices from the previous quarter with values settled at USD 2500/MT for L-Valine Feed Grade CFR Hamburg and USD 3530/MT for L-Valine Feed Grade CFR Hamburg respectively.
For the Quarter Ending June 2024
North America
The Valine market in North America faced a significant downturn even during the entire second quarter of 2024. A persistent drop in L-valine prices, echoing a parallel downturn seen in key producing nations such a Chinese province depicting a significant exporter to the USA.
A confluence of factors contributed to this downturn, notably the alleviation of geopolitical tensions from past months, which led to a significant reduction in freight charges, shifting consumer preferences towards other amino acids, and a reduction in overall feedstock prices. This reduction in transportation costs consequently impacted shipment expenses and the overall pricing of valine within the US market, making it easy for the availability of goods within the market. However, the presence of substantial existing inventories in the regional US market, steaming from the continuous drop in regional quotations particularly from the feed sector contributed to a subdued market sentiment. This surplus in inventory, coupled with diminished purchasing activities and weakened consumer confidence across end-user sectors, notably amid increased inflationary pressures, further dampened the demand for L-valine. Moreover, supply dynamics played a pivotal role in shaping the pricing landscape. The elongated supply length, coupled with higher prices for raw material Corn, compelled some producers to either reduce run rates or idle capacity, consequently preventing the additional cost of storage of the material while destocking them as soon as possible. While on the demand side, across the North American market, the overall market activity has been subdued, with fewer transactions taking place. This subdued activity was a result of the weak demand from downstream sectors. End users are reported to have existed stocks, leading to weaker demand for new purchases.
Participants remained largely inactive in placing fresh orders, adopting a cautious wait-and-see approach, and engaging in procurement activities solely to meet immediate requirements. This muted demand pattern raised concerns among domestic retailers and suppliers regarding potential destocking practices. Adding up to this, regarding the export market dynamics, there were consistent indications that enterprise-level imports of Valine could have experienced a further decline. Overall, this potential reduction in import volumes could be attributed to various factors, such as weakened regional market orders, demand volatility, trade regulatory implications, or competitive pricing pressures from other global suppliers. With this, the import prices concerning the both feed and food grade L-valine during the second quarter of 2024 ending in June were assembled at USD 2220/MT USP Feed grade CFR New York and 3500/MT USP Food grade CFR New York respectively.
APAC
Throughout the second quarter of 2024, the Valine market in the APAC region, particularly in China, faced numerous challenges, resulting in an overall downward pricing trend. Considering the feed grade, the prices remained on the lower side throughout the quarter while rose steadily in the end of the quarter and food grade remained o the lower side. On the supply side, the current dynamics of the valine market, both domestically and in the export market, reflect a state of oversupply and subdued demand, leading to pricing pressures. Manufacturers continued to weaken their profit margins to destock their inventories as traders holding high levels of inventory were willing to sell their end-products at reduced prices to liquidate their stock and generate cash flow. This was driven by concerns about the shelf life of the products and rising storage costs due to increased raw material prices. Further, some market experts noted that another reason for the price dip could be manufacturers bound by long-term contracts with suppliers or engaging in hedging strategies to mitigate the impact of raw material price fluctuations. This uncertainty has led to a cautious approach in purchasing decisions, with buyers hesitant to place large orders or commit to long-term contracts with Chinese suppliers, creating significant imbalances in supply-demand dynamics and leaving traders grappling with higher inventories. This trend continued even in the middle of the quarter. While moving forward towards the end of the quarter, feed-grade prices experienced a moderate uptick, while food-grade prices saw a significant decline. In the feed-grade sector, despite an overall downward trend in amino acid trading from China, demand for certain amino acids, including Valine, remained robust. This sustained demand supported an optimistic price trajectory for feed-grade Valine. Notably, production levels remained high despite price fluctuations and variable replenishment sentiment, indicating that manufacturers maintained full or near-full capacity operations, supported by the higher cost associated with the feed-grade corn. Additionally, demand from downstream traders in major importing countries further bolstered the market, as buyers actively replenished inventories. Supportingly, persistent logistical challenges and trade issues prompted feed buyers from importing nations to proactively secure Valine stocks, anticipating potential supply constraints or price increases. This pre-emptive purchasing behaviour sustained the upward trend in feed-grade Valine prices. With this, the exporting prices for feed grade and food grade amino acids were settled at USD 2000/MT USP feed grade FOB Shanghai and USD 3300/MT USP food grade FOB Shanghai.
Europe
The pricing environment for Valine in the European region during the entire second quarter of 2024 remained predominantly on the downward side with prices experiencing a steady rise yet very steady rate in the end for feed grade. Overall, the demand for Valine, both in feed-grade and food-grade variants, fell short of industry expectations. Despite the usual increase in demand before spring, sluggish economic activity and sufficient domestic stocks kept prices low. Moreover, the trading atmosphere of Valine was average, with factories lowering their quotations and selling the product at discounted rates given the diminished demand. Weakness in downstream inquiries from both feed and food industries was characterized by sporadic small-scale transactions tailored to their specific requirements only. Nonetheless, Stepping into May 2024, freight transportation costs have seen a significant increase, impacting businesses and consumers alike. This rise in shipping costs has been attributed to a variety of factors, including rising fuel prices, supply chain disruptions, and increased demand for transportation services. The spike in transportation costs has hit businesses relying on shipping hard. Many were reassessing pricing strategies, either absorbing the costs or passing them on to customers. This has led to higher prices for consumers, reducing purchases and keeping overall sentiments weak and consolidated. Enterprises, grappling with escalating costs associated with storage and the inherent risk of product deterioration, have commenced releasing their stockpiled Valine into the market. This strategic maneuverer has augmented the available supply for buyers, further exerting downward pressure on prices. Industry analysts have noted that the synergistic interplay of these elements has engendered a propitious environment for buyers, benefitting them in terms of more attractive pricing. While the diminished reluctance to engage in procurement activities, kept the overall market trade sentiments and prices to remain weak and consolidated during the month ending in May 2024. However, the market considering the feed grade witnessed a steady rise as of June 2024, followed by sufficient stockpiles among the traders supported by a steady price rise in key producing nations. On the market side, the spot inquiries were relatively high, and traders held significant stockpiles in both inland and coastal regions, thus balancing the overall supply-demand scenario. Buying interest from end-user industries surged, contrary to previous expectations, leading traders to liquidate them yet at a higher price. Although buyers accepted goods at higher rates as various traders were actively marketing their inventories at a higher cost, despite an appreciation of the euro against the dollar across the regional market. Additionally, considering the highest demand side, there has been an increase in sea freight costs following the past month. This increase was attributed to the higher costs of shipping and the current shortage of sea containers which kept the overall imported cost of Valine on the upper side. While, considering the feed grade, the prices continued to remain on the lower side with supply side balancing the overall demand side. Overall, the prices for feed and food grade were settled at USD 2120/MT Feed grade CFR Hamburg and USD 3420/MT USP Food grade CFR Hamburg.
