Tryptophan's global prices have seen a slight decline in March 2025, especially influenced by the muted demand, sufficient supply on the market and growing geopolitical uncertainty.

One of the major factors behind this decrease of tryptophan prices was an increase of industrial activity in China. As reported by the National Bureau of Statistics, China's official Purchasing Managers’ Index (PMI) increased to 50. 5 in March, indicating its most rapid growth in a year and showcasing renewed momentum in manufacturing. Encouraged by government support programs and favorable operating conditions, manufacturers of nutraceuticals and amino acids in China, including those involved in tryptophan production, expanded their production. Additionally, manufacturers increased production in preparation for planned maintenance shutdowns during the summer, resulting in a well-stocked market that helped alleviate upward price pressures. Prices of tryptophan have settled at $6900 per metric ton in the last week of March, reflecting a monthly decline of 0.75%, as market participants carefully modified their price strategies.

As stockpiles grew, many producers made the decision to offer discounted prices towards the end of the quarter, aiming to reduce inventory and improve their financial situation. Besides the supply side factors, the appreciation of the Chinese yuan versus the US dollar has raised the cost of Chinese exports for buyers around the world. This caused foreign orders to fall and inventory to rise, which further strained tryptophan prices.

Another main element contributing to the weaker demand of tryptophan was growing concern over global trade policies. The market responded nervously after former US President Donald Trump doubled the tariffs to all Chinese imports to 20% on March 4. This step forced many buyers in the US to delay or suspend new purchasing of tryptophan and wait for clarity in future terms and conditions. This hesitation contributed to wider international caution, especially in regions sensitive to the disturbance of the supply chain and the volatility of the customs tariff.

Meanwhile, logistics challenges in Chinese ports also played a role. The reports indicate overload at the main hubs such as Shanghai- Ningbo and Qingdao, where over 140 vessels were anchored as a result of a combination of high traffic and weather closure. These disruptions were complicated by the timetables of transport and discouraged new commands from importers that are guarding the potential delay, which further suppresses the overall demand of tryptophan.

Looking ahead, Q2 contracts are mostly secured, indicating restricted short-term price fluctuations. Nevertheless, analysts warn that the complete effect of recently enacted U. S. tariffs on Chinese products—particularly on essential feed and nutritional components such as tryptophan—might alter market dynamics in the upcoming months. At this moment, the tryptophan market continues to be at a stable-to-weak stage, marked by adequate supply and cautious demand from the buyers.