Arginine Prices Likely to Follow a Pessimistic Market Outlook in May 2023

Effective in Q2 2023, prices for Arginine are anticipated to fall due to a number of variables, including a stable demand, a large supply, consumer confidence, and an increase in trade activity.

This month, the price of Arginine feed grade is expected to decrease in the Chinese market, maintaining the previous depreciation pattern. Low production costs in the domestic and international markets kept the Arginine market weak despite the declining inquiries. The decision of manufacturers and suppliers with enough stock to continue enacting cost-cutting measures to empty their shelves before refilling them in the second quarter of 2023 may have strengthened this price trend. The price of Arginine for feed grade also dramatically decreased towards the end of March, which led domestic merchants to boost their stockpiles of this Arginine feed grade. They concentrated on destocking their inventory at a slower rate than anticipated because they were concerned about loss aversion. The most current sources indicate that to make up for their losses, market participants plan to provide Arginine beginning next month at a price higher than expected. Additionally, manufacturers will probably concentrate on their manufacturing activities in response to requests and want from both domestic and overseas markets. Due to things being sold for nearly what it costs to create them to clear the supply, prices for Arginine have plummeted both last month and this month.

The pricing of Arginine feed grade is expected to be quoted by Chinese exporters at a lower rate than the German markets, taking demand into account. As a result, local markets in certain parts of Europe may notice a price trajectory softening. Since trade activities were simple and freight costs were cheap, Arginine prices were also low. However, more global inquiries are projected to increase in the coming months. This could enhance customer confidence and allow domestic retailers to raise the price of Arginine in their local marketplaces.