For the Quarter Ending December 2024
North America
During the entire the fourth quarter of 2024, the U.S. amino acids market witnessed fluctuating dynamics, marked by varying demand and shifting price trends.
Early in October, the market saw upward pressure on prices due to heightened demand from the animal nutrition sector, spurred by seasonal requirements for better feed quality. However, logistical issues and production setbacks ahead of the holiday season led to supply shortages, exacerbating the price increase. As November progressed, the market experienced a slowdown. Demand from key sectors, such as dietary supplements and animal feed, softened, prompting manufacturers to reduce prices. With the drop, an oversupply situation lingered, with many downstream industries holding onto excess inventory. The cautious buying behaviour of end-users, awaiting further price adjustments, led to lower trading volumes.
By December, the market shifted towards a more positive outlook. Price increases were driven by stronger demand from the pharmaceutical and food industries, coupled with rising feed costs. This created a favourable environment for suppliers, while improved purchasing strategies from buyers helped drive up market activity. The combination of strong export demand and heightened profit margins benefited traders, especially as the year closed with more stable pricing patterns.
APAC
In the fourth quarter of 2024, the Indian market for amino acids experienced mixed trends, reflecting both challenges and opportunities. October saw significant price hikes driven by increasing demand from the livestock and poultry sectors, which required higher nutritional intake due to seasonal changes. However, logistical hurdles and production disruptions ahead of the festive season restricted supply, causing a supply-demand imbalance that pushed prices up. Furthermore, the depreciation of the Indian Rupee provided an advantage for exporters, enhancing trade competitiveness. Moving into November, the market took a more subdued turn. Demand weakened across key industries, including animal nutrition and dietary supplements. Manufacturers responded by lowering prices slightly, but the market remained oversupplied, with downstream industries holding ample stock. Buyers were cautious, hesitant to restock as they awaited potential further price reductions. This phase was characterized by lower transaction volumes and sluggish trading activity, indicating a pause in market momentum. Lastly, By December, the Indian Amino acid market exhibited strong bullish momentum. The price rally was particularly evident in India's western and northern industrial hubs, supported by heightened demand from the pharmaceutical and food industries. Rising feed corn prices provided additional cost support, creating a supplier-favourable market while buyers maintain aggressive procurement strategies to secure volumes to prevent ahead of the festive season, benefiting the traders in terms of higher export prices and heighten profit margins.
Europe
In Q4 2024, the German amino acids market displayed a mixed performance due to various domestic and international factors. October witnessed a notable price increase driven by robust demand from the livestock and poultry industries, where seasonal shifts led to higher nutritional requirements. However, logistical disruptions and production issues related to the upcoming holiday season created supply shortages, amplifying the supply-demand imbalance and pushing prices higher. Additionally, the depreciation of the euro bolstered export competitiveness, benefiting trade dynamics. November saw a cooling in demand, especially in animal nutrition and dietary supplements, leading to reduced pricing pressures. Despite this, the market remained oversupplied, with downstream sectors holding substantial inventories. Caution prevailed among buyers, who refrained from restocking in anticipation of further price declines. Trading volumes were subdued, reflecting a temporary pause in market activity. By December, the market shifted back into a bullish trend, fueled by increased demand from the pharmaceutical and food sectors. Rising corn feed prices contributed additional cost support, benefiting suppliers. In response, aggressive procurement strategies among buyers helped to secure favorable volumes, boosting export prices and profit margins for traders.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American region experienced stable prices for Amino acids, with notable fluctuations in the USA market. Several factors influenced market dynamics, including abundant supply, weak demand, and subdued consumption patterns. The oversupply situation, along with reduced trading activity, contributed to price declines.
Suppliers responded to lower new orders by scaling back production, resulting in shortening supplier lead times. End-users adopted a cautious purchasing strategy focused on necessity, further dampening overall buying interest. Despite some optimism tied to strategic sales efforts, market sentiment remained weak due to the ongoing surplus and reduced demand.
The USA experienced the most significant price changes during the quarter, marked by challenges related to limited inventory and rising prices. Increased demand from downstream industries and positive market sentiment drove prices higher, while slight fluctuations in the pricing environment persisted. By the end of Q3, the USA Amino acid market saw a significant price increase, primarily due to heightened demand in both domestic and export markets, compounded by declining inventory levels and robust end-user consumption. Overall, despite witnessing an optimistic trajectory, the overall market witnessed a pessimistic trajectory with supply
APAC
In the third quarter of 2024, the amino acid market in the APAC region demonstrated overall stability, with periods of notable price fluctuations driven primarily by dynamics in China. Early in the quarter, amino acid prices surged, propelled by increased demand from sectors such as animal feed, pharmaceuticals, dietary supplements, and food additives. Supply chain disruptions, production challenges, and global demand pressures contributed to this upward price trend. Key industries like poultry and aquaculture, reliant on amino acids for growth and health, felt the impact, as did pharmaceutical companies facing elevated production costs due to rising energy, feed, and labor expenses. However, August saw a sharp price decline. The appreciation of the Chinese yuan against the US dollar reduced arbitrage opportunities and bolstered domestic supply, which weakened global competitiveness. Geopolitical tensions and rising freight costs further disrupted trade, and seasonal manufacturing shutdowns resulted in inventory liquidation, particularly for heat-sensitive amino acid products. As the quarter progressed, prices rebounded sharply. Supply shortages and rising demand, especially with the approach of the festive season, fueled proactive buying and heightened competition. The reopening of production facilities and concerns over potential shortages increased the urgency in procurement. Supply chain disruptions and higher phosphoric acid costs exacerbated market conditions, leading to reduced inventories and higher prices by the end of the quarter. The stronger yuan further bolstered the competitiveness of Chinese exports. Overall, the market sentiments concerning amino acids witnessed a downward trajectory throughout the quarter with the supply side outspacing the demand side.
Europe
In Q3 2024, the European amino acid market experienced a dynamic pricing environment shaped by supply-demand imbalances, economic pressures, and strategic inventory management. The quarter began with stable prices, particularly in Germany, where robust bulk purchasing and limited stock availability drove price increases in July. However, by August, prices dropped significantly across the region due to a combination of reduced production costs, lower energy expenses, and oversupply resulting from weakened demand in key sectors. This surplus led to intensified destocking efforts by companies aiming to clear inventories, further exacerbating the supply glut.
Germany, the region’s most volatile market, saw a mixed economic outlook during the quarter, with challenges in its manufacturing sector and signs of easing inflation. Despite these factors, demand in critical end-use sectors remained subdued, contributing to the overall downward price trend. By late September, prices began to rebound as escalating storage costs and the risk of product degradation prompted companies to offload amino acid inventories. Additionally, rising quotations from end-users and traders’ efforts to stabilize cash flow helped lift prices toward the end of the quarter.
Overall, while Q3 2024 saw considerable fluctuations in the European amino acid market, the period ended with a consistent downward price trend despite short-term rebounds driven by inventory management strategies.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, the Amino Acid market in North America showcased a nuanced pricing landscape, influenced by the key market trends witnessed in producing nations, particularly the Apac.
Starting with the quarter the prices rose steadily marked by increased regional demand for amino acids from downstream nutraceuticals and livestock industries. Furthermore, supply-chain disruption across the region also hampered the overall availability of materials within the nations with the bridge collapse in Baltimore being a key contributor. This incident caused significant delays and blockages in cargo movement, particularly affecting East Coast ports and consequently impacting the Amino acid market nationwide. Compounding these challenges was the anticipation of increased cargo volume at major ports like Los Angeles and Long Beach. Additionally, recent geopolitical tensions in West Asia, highlighted by Iran's military activities targeting Israel, have injected further uncertainty into global trade and shipping routes, including those crucial for the Amino acid trade. Concerns over a potential blockade in the Persian Gulf have spurred a surge in demand for alternative maritime routes, exacerbating logistical complexities. Moreover, as a significant importer, the United States closely follows the trajectory of exporting nations to maintain competitiveness in the market, thereby supporting overall higher prices until the final weeks of May.
However, as June commenced, the prices dropped significantly marking an overall pessimistic trajectory in terms of supply-demand dynamics. Concerning the overall supply side, the Lysine Hydrochloride for both the grades market exhibited ample spot inventories alongside subdued trading activity. This was driven by heightened stockpiling among merchants in anticipation of increased regional demand that failed to materialize. The activation of new production lines exacerbated the supply glut, surpassing current demand levels. Concurrently, traders engaged in active inventory liquidation, further bolstering available supply. On the demand side, the trading environment witnessed a subdued trajectory, with factories primarily focused on fulfilling existing orders through active shipping. However, Downstream buyers took advantage of lower prices, but their purchases were mostly limited to specific needs rather than bulk acquisitions, resulting in weak and small-scale transactions, and a market to trend on the southerly side.
APAC
In Q2 2024, the Amino Acid market in the APAC region experienced a declining price trend driven by several significant factors. The market observed a persistent decrease in demand from key sectors, including livestock feed and pharmaceuticals, which led to a surplus in supply. Focusing on India, the country witnessed the most significant price changes in the region. The overall trend during the quarter was negative, influenced by seasonal factors such as reduced agricultural activity and lower feed demand in the summer months. The correlation in price decreases was evident as the market adjusted to the reduced demand and stabilized supply. Compared to the same quarter last year, the prices were notably lower, reflecting the broader economic conditions and sector-specific challenges. From the previous quarter in 2024, prices decreased by 9%, highlighting the substantial shift in market dynamics. A closer look at the quarter reveals an average drop of 0.3% during the entire quarter, underscoring the consistent downward trend. Additionally, the stabilization of upstream feedstock costs and lower energy prices contributed to the downward pressure on Amino Acid prices. However, a steady upward trend was witnessed in the first two months. This trend was marked by higher inquiries arriving from the downstream industry, The sector was also impacted by logistical challenges, including delayed shipments and reduced container availability, which affected the overall trading sentiments ahead of the persistent effect of the Red Seas disputes. Lastly, various market experts stated that, with a continuous rise in the demand side, the suppliers were able to sell their goods at a higher cost within the domestic market ahead of a continuous depreciation of INR against the dollar. As of the end of Q2 2024, the price of Amino Acid Ex-Hyderabad in India was USD 152,910/MT with a sudden decrease in prices, reflecting an overall negative pricing environment in the APAC region for this quarter.
Europe
During the entire second quarter of 2024, the imported prices of amino acid across the European region followed the market trend of other trading nations such as the North American region. Initially, the quarter saw weak market prices for amino acids, driven largely by reduced demand from downstream sectors such as nutraceuticals and supplements. This decrease in demand was further supported by lower production costs due to the feedstock corn market. With prices declining at a steady rate. On the market side, spot inquiries were relatively quiet, and traders held significant stockpiles in both inland and coastal regions. Buying interest from end-user industries eased, contrary to previous expectations, leading to excess inventories and prompting traders to liquidate them throughout the month. However, by the end of June 2024, prices rose steadily. Overall purchasing was primarily made on an as-needed basis, with clients buying according to their stock consumption. Despite slight variations in both feed and food grade, overall market sentiments concerning Threonine remained optimistic throughout the quarter.
For the Quarter Ending March 2024
North America
Throughout the initial quarter of 2024, the Amino Acid market in North America showcased a nuanced pricing landscape, influenced by a myriad of factors contributing to its intricate dynamics. While there was an overall increase in prices compared to the same period last year, the United States experienced particularly notable fluctuations, reflecting the market's sensitivity to various influences. One significant factor contributing to these fluctuations was disruptions in the supply chain, which posed challenges to the seamless flow of goods. Geopolitical tensions further compounded these challenges, adding to the uncertainty surrounding market conditions. Additionally, rising costs of raw materials played a role in shaping pricing dynamics, as producers grappled with increased production expenses.
Furthermore, the market experienced interruptions due to plant shutdowns in exporting nations, with China's temporary closure ahead of the Lunar New Year holidays being particularly impactful. This disruption hindered import momentum until mid-February 2024, resulting in sustained upward pressure on Amino Acid prices throughout the quarter. The consequent imbalance between supply and demand further contributed to pricing complexities, creating challenges for market participants.
Moreover, rising freight and transportation costs exacerbated logistical hurdles, making it increasingly challenging to procure products. These elevated costs added to the overall trade momentum's disruption, amplifying the imbalances in supply and demand within the market. However, following the trajectory of exporting nations the prices witnessed a steady decline in January 2024. This was supported by Year-end destocking activities in the prior month, resulting in reduced demand and ample inventories, which exerted downward pressure on prices.
APAC
Throughout the first quarter of 2024, the pricing dynamics of Amino Acid in the APAC region experienced notable fluctuations, with a focus on the Chinese market. Beyond the conventional factors, several nuanced influences impacted the market. The overall trend in China reflected an upward trajectory in prices, driven by a persistent rise in end-users and overseas demand from both domestic and international markets considering the food and feed industries. Furthermore, witnessing this, the market situation in China was additionally characterized by limited supply supported by a temporary slowdown, with manufacturing units shutting down, a shortage of labour, and a weakening export momentum. However, upon the resumption of regular operations post-holiday, there was a notable uptick in both regional and international inquiries for Amino Acid, providing an added advantage to suppliers and manufacturers. Recognizing the potential for increased profitability, industry stakeholders strategically elevated prices to optimize their maximum profit margins. Additionally, a robust export market substantially supported the price of Amino Acid during the month. Moving forward toward the end of the quarter, the ongoing tensions in the Red Sea region and the resulting trade disruptions eased to some extent supported by a drop in freight charges and the reopening of the market. This reopening of the Chinese market after seasonal festivities marked a significant milestone, ushering in a resurgence of production activities across manufacturing units by market participants to fulfil renewed demand, and merchants adjust pricing strategies to compensate for previous profit losses.
Nevertheless, prices dropped considerably as January commenced. This was supported by weaken demand, sufficient supplies and moderate trade momentum balancing the overall supply-demand side. Additionally, as the market reopens after a significant end of new year generally witnessed a lower demand from regional and overseas market. As a result, traders focused on year end destocking activity thereby resulting in a steady price drop.
Europe
In the first quarter of 2024, the Amino Acid market in Europe experienced significant price fluctuations, with Germany particularly following the market trajectory of exporting nations particularly the Apace. Several factors contributed to this pricing volatility beyond the usual market drivers. Firstly, heightened demand from the downstream sector, spurred by the cold and flu season, holiday festivities, and increased social activities, drove the overall market trend. This surge in demand for immune-supporting supplements, including Amino Acid, played a significant role in driving prices upward. Additionally, specific market conditions in Germany, such as supply chain disruptions, geopolitical tensions, and trade disruptions, exacerbated pricing dynamics. For example, tensions in the Red Sea led to shipping route diversions and increased shipping costs, causing disruptions and uncertainty in the market. Moreover, disruptions associated with the Chinese New Year celebrations further compounded supply chain challenges, impacting logistics and contributing to market uncertainties. Furthermore, the global rise in freight costs and a slowdown in export-import activities from major exporting nations added to the pricing complexity, particularly in the early months of the quarter. However, as March progressed, these challenges began to alleviate gradually. However, the prices witnessed a steady drop in the early quarter, particularly January. This was supported by sufficient inventories among the merchants balancing the overall demand side. Further traders were considerably focused on clearing their inventories to prevent the additional cost of storage and further deterioration of the product.
