US Threonine Prices Likely to Decline as September Ends Amidst Weaken Demand Outlook

Feed and food-grade Threonine prices drop as the third quarter of 2023 ends across the United States. Yet again, with a decline in downstream demand in the domestic market, higher input cost, and persistent higher inflammatory pressure, reduced imports from China support the current market trend for Threonine, an amino acid, beginning September 2023. Increased production capacity of both feed and food-grade amino acids in the US is one of the factors causing this drop in Threonine prices across the US market. As a result, there is now more Threonine available, which has caused its price to decline. Furthermore, China is a significant exporter of feed amino acids, but recent decreases in downstream consumption have significantly impacted Threonine exports. Because of this, there is a shortage of feed amino acids in the US market, which has caused prices to rise.

Additionally, as the global economy slows, there is a persistent decline in the offtakes for all goods, including feed and food-grade amino acids like Threonine. Decreasing feed and food-grade amino acid prices is a good development for suppliers and food producers. They will be able to produce food more cheaply and effectively. The feed and food-grade amino acid market is, however, one that is unstable, and prices can vary widely depending on a number of factors. As a result, buyers must keep a close eye on the market and choose the right time to buy feed- and food-grade amino acids.

The pricing dynamics of some amino acids, including Threonine, have also been significantly impacted by difficulties in the fields of logistics and transportation. The market trend for feed and food grade was kept on the downside by protracted disruptions combined with weaker import activity, primarily from the Asia-Pacific region, which worsened the downward price trajectory for Threonine in the region. Additionally, manufacturers have not experienced any supply-related problems since the beginning of September because they were able to meet the overall arrived demand with their stockpiles inventory from previous months. Concerning the seasonal variations, as we approach the end of the third quarter, the onset of winter causes a decrease in the consumption of amino acids in the feed industry, which further ties the downward price trend for Threonine across the US market. As market participants anticipate declining market demand for amino acids like Threonine both domestically and internationally, the trading activity for Threonine from major exporting nations across the APAC region is expected to decline until the final weeks of September.