Positive Price Surge Anticipated as US Threonine Demand Looks Up in November 2023

As of early November,  the prices of certain Amino Acids, such as Threonine, are likely to witness a moderate improvement across the United States. Supported by rising inquiries within the domestic market and balanced by heightened availability among the market players, it is further expected to keep the overall market trajectory optimistic. Considering both the feed and food sectors, the market witnessed a slight inclination at the beginning of November due to a rise in downstream consumption of Threonine as a feed supplement across the nation.

This ascent in the downstream uptake of Threonine has considerably provided an added advantage to market participants and suppliers to clear out their excessive inventory levels of past months, which has put upward pressure on prices. This has led to some additional demand for Threonine as buyers have stocked up on the amino acid. Supporting this, the rise in energy costs in recent months has also increased the cost of manufacturing goods. This addition is considered another factor that might keep the overall prices on the upper side.

Further, certain industry experts point to the ongoing challenges in producing and transporting raw materials as a primary driver behind the spike in Threonine prices. This means that the prices of raw materials, primarily corn, might witness a moderate uptick, as its consumption in the feed sector is further expected to rise shortly, which might sustain a significant balance between the Threonine supply sides, another factor contributing to a higher price trajectory across the North American region. Also, the global supply chain has been grappling with various disruptions, ranging from logistical issues to shortages of some of the key ingredients. These challenges have created a domino effect, impacting the production and availability of Threonine in the market.

Also, increased demand for high-quality animal protein, particularly in emerging markets, has put additional pressure on Threonine supplies. As the global population grows and dietary preferences shift towards protein-rich diets, the demand for livestock and poultry products has surged, amplifying the need for essential amino acids like Threonine.

Industry stakeholders are closely monitoring the situation and are calling for further focus on clearing their inventories of the past months. As the situation continues to unfold, the global agricultural and other food sector communities remain on high alert, hoping for swift and effective measures to stabilize both the upstream and downstream Threonine prices and safeguard the sustainability of the livestock and poultry industries.