Amino Acid Import Prices Continue Upward Trend Amid Global Supply Chain Disruptions
- 28-Feb-2025 2:45 PM
- Journalist: Conrad Beissel
The United States is witnessing a continued rise in amino acid import prices as global supply chain disruptions and international trade tensions impact this crucial market sector. Industry analysts report that prices have surged by approximately 5% at the beginning of 2025, with further increases anticipated in the coming months.
The amino acid market, essential for industries such as animal feed, food additives, and pharmaceuticals, remains heavily influenced by international trade relations, particularly between the U.S. and China. As the world’s leading producer of amino acids, China’s manufacturing capabilities play a pivotal role in global supply and pricing.
Market experts state that the ongoing trade tensions between the U.S. and China continue to drive uncertainty in the market. “Tariffs and trade barriers are exerting cost pressures throughout the supply chain, significantly impacting U.S. importers and end-users, further driving the upward trend in amino acid import prices across the nation.”
At the start of February, ahead of the Lunar New Year holidays, the U.S. amino acid market had already experienced volatility due to fluctuating demand and supply-side uncertainties. Many buyers engaged in stockpiling to offset potential supply gaps, contributing to early price firming. Meanwhile, major manufacturing hubs in China slowed operations for the holiday period, exacerbating supply chain constraints and further straining global availability concerning the amino acid. Adding to these pressures, a series of planned maintenance shutdowns at major amino acid production facilities in Asia and the Americas have tightened supply and are expected to have lasting effects. Key shutdowns include those at Archer Daniels Midland Company (ADM) from February 10–15 and February 14–20, as well as Evonik Industries from February 15–20. These temporary closures have led to short-term production disruptions, particularly affecting the availability of lysine, methionine, and threonine, essential amino acids for the feed and pharmaceutical sectors. With approximately 65% of amino acid imports coming from Chinese manufacturers, U.S. buyers have limited alternatives in response to supply constraints or price increases. Consequently as market participants are facing procurement challenges, this could drive an increased reliance on imports or alternative source strategies.
Lastly, the animal feed industry, which accounts for nearly 70% of amino acid imports, has been particularly affected by the price surge. Feed manufacturers warn that they may soon need to pass these increased costs on to livestock producers, potentially leading to higher meat and dairy prices for American consumers.
Industry experts anticipate that the current market conditions for amino acid will persist through at least the second quarter of 2025. As global trade relations evolve and production facilities resume full capacity following scheduled maintenance, market analysts will closely monitor whether prices stabilize or continue their upward trajectory concerning the amino acid across the region and within the global market.