Threonine Prices Soar Across the Globe Amidst Increase Demand and Limited Imports

The price of Threonine has been trending upward due to the high consumption in the downstream industry. The manufacturers were further encouraged to increase production momentum and maintain their profit margins by a rise in domestic demand from the terminal market. The current market trend for Threonine was supported in the middle of the second quarter of 2023 by several factors, including improved consumer interest and constrained stockpiles, and is predicted to continue in the forthcoming months.

The German market prices for feed-grade and food-grade Threonine grew by around 4% and 1% during May, indicating an increase in demand for Threonine in the domestic market. Additionally, because of the expensive cargo from the Asian market that was purchased for German customers due to the exporting countries, principally China's, facility that had undergone maintenance leading to inadequate production activities, the pricing patterns in the domestic market for Threonine were influenced. Additionally, it predicts that economic activity will slightly increase after the second quarter of 2023. The inflation rate in Germany continued to decline in May 2023, with an inclination rate of 6.1%. Additionally, the Year-Over-Year (YoY) increase in energy prices in May 2023 was 2.6%, which was lower than the overall index's change rate. The index level was high in May 2022 after energy prices had risen sharply as a result of the Russian attack on Ukraine, so there is a base effect.

On the other hand, the US market also experienced an increased trend during this time; more Threonine material was consumed, and domestic demand continued to rise. The quotation prices for the end product, Threonine, increased further as a result of more inquiries about the product from the downstream industry. The industry is also operating at a low level as mainstream businesses alternate starting maintenance. The market is expected to become more competitive, and "Fufeng" plans to start producing again in China later this month. This will likely have a negative impact on the market for Threonine in the US as a whole because suppliers will have fewer supplies and will see fewer imports. However, Chinese manufacturers continue to raise prices, taking into account terminal demand and manufacturer production.

According to ChemAnalyst, "The prices of Threonine are anticipated to rise in the coming months because participants anticipate that both the domestic and international demand will remain on the upper side. Moreover, trade activity is further expected to support the positive market trend of Threonine in the forthcoming months".