Global Threonine Prices Likely to Rise in the Q2 of 2023 Due to Optimistic Demand
- 18-Apr-2023 6:52 PM
- Journalist: Li Hua
Threonine prices are predicted to surge with the start of the second quarter of 2023 across the global market. This surge in prices is likely to get supported by certain factors, including rising demand, consistent drop in energy costs, consumer confidence, and a rise in trade activity.
In the Chinese market, the prices of Threonine feed grade are estimated to rise in upcoming months as compared to the first quarter of 2023. This price trend might reinforce by the fact that manufacturers and suppliers are expected to raise their production cost and selling prices of this end product within both the domestic and the international market after witnessing the drastic loss. Moreover, at the end of March, the prices of Threonine for feed grade demonstrated a significant drop, resulting in higher stockpiles for this product among the domestic merchants because of which they feared loss aversion and focused on destocking their stockpiles at a lower rate than expected. According to the current sources, as the second quarter of 2023 begins, market participants anticipate to offers Threonine feed grade at a higher cost than expected in order to cover up their losses. Besides this, manufacturers are likely to focus on their manufacturing activity based on the demand and inquiries from the local and global markets.
Similarly, in the US and German markets considering the demand side, the Chinese exporters are likely to quote the prices of Threonine feed grade at a higher rate, due to which the domestic market of both regions might witness a higher price trend for this product. However, as the inquiries from the international market are forecasted to rise in upcoming months, consumer confidence might improve, which is supposed to help domestic retailers increase their local market prices of Threonine.
Also, another element that is anticipated to assist the upward trend in both regions is the ongoing export from China, one of the main suppliers. Threonine prices might surge in the upcoming month as a result of decreased freight costs and lower energy costs.