Methionine Prices Anticipate Declining Trend in April 2023 Due to Sluggish Demand

At the beginning of Q2 2023, Methionine prices are predicted to decline across the globe by several factors, including stable demand, ample supply, lower consumer confidence, and increased trade activity.

In the Chinese market, the prices of Methionine feed grade are estimated to drop this month in continuation with the former depreciating trajectory. The fact that manufacturers and suppliers with sufficient inventory on hand chose to continue with a price reduction to clear out their existing inventories. The low production within both the domestic and international markets after witnessing the deprecating inquiries kept the Methionine market feeble. Additionally, at the end of March, the prices of Methionine for feed grade showed a significant decline, leading to higher stockpiles of this Methionine feed grade among domestic merchants. As a result, they were concerned about loss aversion and concentrated on destocking their stocks at a slower rate than anticipated. The market participants plan to supply Methionine at a higher price than anticipated starting next month in order to make up for their losses, according to the most recent sources. In addition, manufacturers will probably concentrate on their production activities in response to demand from both domestic and international markets. Since the products are being sold close to their cost of production to clear the existing supply, Methionine prices have declined both last month and this month.

Similar to the Chinese market, the US and Germany are expected to quote the prices of Methionine feed grade at a lower rate considering the demand side. As a result, the domestic markets of both regions may experience an easing in the trajectory of prices. Additionally, because trade activities were simple and freight costs were minimal, Methionine prices were on the lower end. However, as more overseas inquiries are anticipated in the coming months, consumer confidence may increase, which is intended to support domestic retailers in raising the price of Methionine in their local markets.