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.
For the Quarter Ending December 2023
North America
In the fourth quarter, the Amino Acid market witnessed fluctuations in pricing. Prices saw an initial increase in early October, sharply declined in mid-Q4, and rebounded towards the quarter's end. The uptick at the start of the quarter was attributed to heightened demand from the Asian market, fuelled by a positive outlook. Industry experts noted downstream businesses raising prices, notably driven by the onset of the winter season, resulting in a surge of domestic inquiries for Amino Acid in recent months.
However, November marked a significant decrease in Amino Acid prices in the United States. The primary factor was the decline in Amino Acid prices in major exporting countries, with the USA following suit as an importer. Reduced prices in APAC provinces, a key player in the Amino Acid market, had a cascading effect on the overall pricing structure in the USA. This decline resulted from diminished international market demand, prompting the exporting countries to lower their exporting prices. Additionally, surplus inventory accumulation among US suppliers impacted prices and reflected challenges in managing inventories efficiently. The combined influence of international and domestic factors led to a substantial decline in Amino Acid prices throughout November. As December 2023 began, the United States witnessed a slight rebound in Amino Acid prices, closely mirroring the trajectory of exporting countries. This synchronization contributed to robust market sentiments, intensifying upward price pressure.
Ongoing incidents like ship attacks near the Suez Canal and persistent congestion in the Panama Canal added complexity to the global supply chain. A container shortage, exacerbated by vessels not returning to Asia on time and ocean carriers cancelling sailings on short notice due to ship diversions, further contributed to the challenges. Businesses grew more optimistic about the future, leading to increased investments, especially during the festive season when consumer demand rose. Additionally, market participants placed bulk orders to replenish inventories, creating a surge in demand that compelled businesses to raise their quotations.
Asia Pacific
In the APAC region, the Amino Acid pricing landscape in the fourth quarter of 2023 was influenced by various factors, with notable dynamics observed in India. The market situation in India, experiencing significant shifts in Amino Acid prices and displayed a mixed scenario. Firstly, there was a moderate increase in downstream purchasing activity, driven by higher consumption of specific amino acids in the feed and food sector, leading to a consistent influx of overseas and regional market demand. Additionally, the depreciation of the Indian rupee against the dollar further strengthened the price trend, promoting increased exports. This depreciation enhanced the competitiveness of Indian exports in the global market, making them more appealing to foreign buyers due to their affordability. This optimistic scenario contributed to India's export earnings, fostering overall economic growth throughout October 2023. Moving forward in November, On the supply side, some industry participants noted that operational activity remained on the lower side for the entire month, with ample stockpiles of Amino acids among merchants. The market saw a limited circulation of goods, and traders actively focused on clearing their stockpiles, resulting in a relatively small market transaction volume with a bearish trading atmosphere. Demand, in contrast, was subdued, with buyers placing orders based on immediate requirements. While, once again, in December 2023, the Indian market experienced a significant increase in downstream consumption of specific amino acids, such as Valine, across the regional market. This positive trend is expected to continue into the following month and throughout the first quarter of 2024. Also, Market analysts are optimistic, foreseeing potential shortages of amino acids in early 2024 due to factors like production limitations and export restrictions. In response to these projections, buyers have proactively engaged in stockpiling, leading to a further upward drive-in price. Additionally, traders focused on increasing their future stock levels, further exacerbating the market conditions in December.
Europe
In the European market, particularly in Germany, the price trend throughout the entire fourth quarter of 2023 closely mirrored that of exporting nations, primarily India. Prices surged at the beginning of the fourth quarter, plummeted in November 2023, and rebounded towards the end of the quarter. In October, the increased demand for Amino Acid was influenced by various factors, including rising production expenses and soaring energy costs in exporting nations, consistently driving overall market prices upward. In response to this heightened demand, market participants issued fresh price quotes to replenish inventories and meet customer needs. Downstream panel factories adjusted procurement based on demand, leading to increased bidding and offers among enterprises, influencing market dynamics. As Germany played the role of an importing nation, its Amino Acid prices followed the trend of the major exporting country, resulting in a noticeable price decrease. Regarding the broader supply aspect as of mid-Q4, there was ample availability of Amino Acid, and downstream procurement primarily relied on consistent demand. Operational stability was observed in the near term, albeit with diminished strength. Local manufacturers were accumulating a considerable inventory to meet domestic demand. Additionally, the Consumer Price Index (CPI) for Germany in November 2023 was 186.3 points, reflecting a 0.4% decrease from October 2023. Globally, central banks, including the European Central Bank (ECB), were raising interest rates to combat inflation, resulting in increased borrowing costs and a dampening effect on economic activity. Lastly, in December 2023, the German market witnessed a modest rebound in Amino Acid prices. This abrupt price increase can be attributed to a confluence of factors shaping market dynamics during this period. One of the primary drivers of this surge was increased demand from the downstream sector, driven by a combination of factors. As customer confidence improved, there was a noticeable uptick in consumer purchases of Amino Acid, contributing to a surge in demand. This heightened demand exerted pressure on existing supply chains, leading to a ripple effect on prices. The escalating global cost of freights played a crucial role in influencing market dynamics for Amino Acid in Germany.
For the Quarter Ending September 2023
North America
During Q3, Amino Acid market prices experienced a sharp decline in the first half, remaining pessimistic until the end of August. This depreciation was primarily due to a significant decrease in demand within the food sector, caused by a consistent drop in consumption. The economic instability in the US and the global inflation surge further dampened downstream purchasing, contributing to the decline in Amino Acid prices. Some businesses have chosen to cut back on their import operations as a result of the sluggish economic growth, raising questions about future demand. Furthermore, businesses' reluctance to build up excess inventory because of concerns about potential sales difficulties has been linked to the overall decline in trade. However, by Second half of the Q3, specifically in September, prices stabilized, showing a gradual rebound compared to the previous month. Although new demand for Amino Acids was not exceptionally strong, recent price firmness allowed merchants to charge higher prices for their goods and clear their accumulated stockpiles. Additionally, increased consumption in animal feed, pharmaceuticals, and cosmetics sectors supported this rising trend until the final weeks of September 2023. This balanced out the market's purchasing activity as merchants had ample stocks to meet the arriving demand from feed industries.
Asia Pacific
Amino Acid prices showed a negative trend in terms of the demand side until the middle of the third quarter of 2023. However, they improved towards the end of September 2023. This decline was driven by reduced consumption in the downstream sector, leading to surplus stockpiles among merchants. The country's market dynamics were further affected by high amino acid inventories among suppliers, forcing them to significantly lower their prices to sell their products. A recent survey indicated a drop in the new orders index from 57.4 in June to 55.9 in July 2023, along with a decrease in the employment index from 54.2 in June to 52.9 in July 2023. In July, Amino Acid trading activity slowed due to lower demand both domestically and internationally. Additionally, increased Amino Acid supply from China and other major producers led to lower global prices, putting pressure on prices in India. Additionally, the prices of raw materials used to produce certain amino acids also decreased, contributing to the downward trend in Amino Acid prices during July. However, towards the end of Q3, Amino Acid prices significantly increased across the Indian market due to high demand. Suppliers struggled to meet the rising requirements, attributing this price surge to increased demand for specific amino acids in the livestock industry. Moreover, there was heightened consumption of meat and dairy products containing higher levels of these amino acids in both domestic and global markets, keeping its market sentiments on the upper side throughout September 2023.
Europe
In the European market, especially in Germany, the price trend during the third quarter of 2023 mirrored that of the United States. Prices experienced a decline until August, partly due to weakened purchasing activity in the domestic market. This reduced demand led to fewer inquiries from suppliers and retailers. As the monsoon season approached, buyers hesitated to place large orders, fearing product damage, which further halted restocking efforts. Also, in order to replenish stocks and reduce current inventories, domestic suppliers have also been encouraged to offer competitive pricing and cut costs, which has further pressured prices on the downward side. However, as September 2023 approached, prices began to stabilize. Suppliers showed interest in offering their goods at higher prices to recover previous losses in profits. Despite this, buyers remained cautious, waiting to see if prices would decrease further. Additionally, the rising costs of fuel and energy in exporting nations increased manufacturing expenses, supporting the higher prices of imported goods. Although newer orders consistently rose, they remained lower than anticipated by market participants in the feed and food sectors.
For the Quarter Ending June 2023
North America
During the Q2 2023, Amino Acid prices followed the market trend in India. The prices improved during Q2, but saw a sharp drop in early April, following the market trend in March. The price trend was supported by a steady decrease in domestic and overseas inquiries. In addition, retailers across the domestic market had surplus warehouse inventory that they had ordered in previous months during the epidemic. In response to the surge in demand, merchants that had higher stockpiles among themselves now had to sell their inventories at higher-than-expected prices to make up for their earlier profit losses. As Amino Acid prices started to improve towards the middle of Q2, they continued their upward trend until the end of Q2. The positive market trend of Amino Acid in the United States was further supported by a rise in the US consumer price index (CPI) from May to June, as reported by Statistics.
Asia Pacific
Amino Acid prices show an increasing trend throughout Q2 2023. Amino Acid values decreased sharply in April due to decreased demand and decreased offtakes predicted from both domestic and international markets. Domestic factories had low demand, upstream shipment pressure was high, and inventory remained high. This led to a continuous decrease in Amino Acid prices. As Q2 progressed, Amino Acid prices began to recover and remained on the high side until the end of June. As purchasing activity resumed, the market participants started to deplete their inventory first. Also in May, China's purchasing managers' index (PMI) for manufacturing increased from 49.5 in April to 50.9 in May 2023, surpassing market estimates of 50.3. According to the reading, China's manufacturing industry grew for the fifth straight month in May, further supporting the optimistic market trend for feed grade. However, the overall demand was balanced with sufficient supplies among the merchants as June concludes, In India and is expected to increase in the coming months at a healthy pace. This was mainly due to the announcement of EPPEN on June 8th, 2023, that it will close its bases in Heilongjiang, and Inner Mongolia, respectively, in June and July for equipment maintenance. This impacted the overall availability of a variety of end-products, including Amino Acid, in the domestic and foreign markets as increased demand for Amino acids led to decreased availability and affect the trade momentum across the region, resulting in a significant increase in its prices.
Europe
Throughout Q2 2023, Amino Acid values followed the market trend in Asia Pacific region across the whole European market. Amino Acid prices remained south side during April while they started to move to the south side as the month progressed. The decrease in the prices in April was mainly due to the consistent decrease in domestic demand, which resulted in a significant drop in import activities during April. The market participants also had higher inventories in this month, which balanced the overall Amino Acid demand side during April. As the month progressed, Amino Acid prices started to move to a moderate level in May, resulting in an increase in domestic enquiries. This price trend continued until the last weeks of June, supporting the upsurging market trend in the European Amino Acid market during May. The Consumer Price Index (CPI) in Germany increased by 6.1% compared to the previous year in May further supporting the optimistic market trend. additionally, the trade activity also resumed owing to higher domestic inquires which compelled the merchants to raise their inventories within the region.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw a decline in the values of Amino Acids. Early in January, prices showed an upward trend that was improved by an uptick in downstream demand from the end-user sector. Positive market sentiments were also influenced by the suppliers' and traders' limited supply until the last week of January 2023. Moreover, as February approached, the prices started to decline for Amino Acids with lessened trade activity supporting the weaker market trend. Furthermore, owing to a consistent drop in domestic demand and higher stockpiles among the market participants, the traders and suppliers pulled back their newer quotation to prevent loss aversion and focused on the destocking process.
Asia Pacific
Prices for Amino Acids decrease in the APAC region during the first quarter of 2023. In January 2023, with strong downstream demand from the domestic market, Amino Acid prices in the Chinese market saw an increase in pricing sentiment. Although the production started to rise significantly until the end of February, the rise in container logistics suggests that the downward trend has finally come to an end, which is encouraging for many players who export to foreign markets until the final weeks of January 2023. However, as February drew near, the prices started to decline considerably owing to a decrease in inquiries from both the domestic and international markets. With this, the prices for Amino Acid during March were assembled at USD 1887.8/MT in India.
Europe
As the first quarter of 2023 comes to a close, the price of Amino Acids fell in the European region. A decline in end-user industry demand weakened consumer confidence, and increased supplies were some of the factors that kept Amino Acid prices moving downward. Following a month-over-month decline in price, the price of Amino Acids showed an inclined price trajectory in January 2023. In Germany, the market trend for Amino Acids was supported by reduced inflation, logistic costs, rising energy costs, and increased consumer demand. As February approached, Germany's imports of various Amino Acids from Asia gradually decreased due to a significant decrease in downstream inquiries, which has led to higher supplies among domestic merchants.
For the Quarter Ending December 2022
North America
Prices for Amino Acids plunged in the last quarter of 2022, particularly in the United States market. As the fourth quarter got underway, prices skyrocketed due to a rise in demand for both foods- and feed-grade products. Due to growing inflation, numerous logistical challenges, and greater manufacturing costs in the exporting nation, prices increased during the first half of the fourth quarter. Additionally, prices began to progressively decrease in the middle of the fourth quarter because fewer inquiries kept the stocks at their highest levels later in December.
APAC
During the fourth quarter of 2022, Amino acid prices in the APAC area had a downward price trend. This pricing pattern was influenced by domestic market participants' large stocks and weak demand. The pricing also pointed to a decline in market sentiment in China, which was primarily sparked by rising stocks, a lack of demand from the downstream industry, and deteriorating meteorological conditions that resulted in heat waves, droughts, etc. Additionally, from the conclusion of the first quarter to December, prices in both APAC countries fell significantly. The cost of L-lysine hydrochloride in India, however, declined in the following quarter. Towards the end of the quarter, the prices for Amino acids were assessed around USD 1913.84 /MT for Ex-Hyderabad in December.
Europe
Prices for Amino Acids in the European region exhibited a decline in market sentiment during the fourth quarter of 2022. Due to rising energy prices and hindered trade activities, the price trend for Amino Acids was on an upward trend at the beginning of October. Following November, prices began to fall steadily, mostly because of a reduction in overseas orders, particularly from China's exporting countries. However, as a result of fewer or no queries due to the market's brief shutdown, prices at the close of this fourth quarter continued the trend of November.
For the Quarter Ending September 2022
North America
The third quarter of 2022 saw a declining trend for Amino Acid prices, supported by less downstream demand on the domestic market. Furthermore, China's zero covid policy has significantly impacted imports of L-lysine hydrochloride into the US. They exacerbated the weather in the early half of Q3, causing heatwaves, droughts, and flash floods. This stopped the trading momentum and helped the US market trend for L-Lysine Hydrochloride. A trend decline was also seen in the third quarter's h2 and h3.
APAC
During the third quarter of 2022, Amino Acid prices in the APAC area had a downward price trend. Weak demand and ample stockpiles among domestic market participants contributed to this pricing trend. During the first part of q3, prices in India increased by 2.06%. At the same time, the price indicated a downturn in the market mood in China, which was primarily brought on by increasing stocks, a lack of demand from the downstream sector, and worsening weather conditions that led to heat waves, droughts, etc. In addition, both APAC nations saw a sharp decline in prices from the end of the first quarter until September. However, it is projected that L-Lysine Hydrochloride prices in India may increase in the upcoming quarter. Towards the end of the quarter, the prices for Amino acids were assessed at around USD 2121/MT for Ex-Hyderabad in September.
Europe
In Germany's third quarter of 2022, the European market follows a similar pricing trend to the North American region, supported by uneven downstream demand from end-user industries. Additionally, less buying activity strongly supported the decreased price trend of L-Lysine Hydrochloride in the local market. Because of the decreased downstream direction from the customers, manufacturers have been hoarding amino acids. In addition, a decline in trading activity, the conflict between Russia and Ukraine, and stored cargoes had a negative impact on the trajectory of L-Lysine Hydrochloride prices.
For the Quarter Ending March 2022
North America
In Q1 of 2022, the domestic market trend of Amino Acid followed an upward trajectory across the North American region. The food and beverage industry saw large offtakes throughout the quarter on the demand side. In terms of supply, there were enough stockpiles to accommodate overall demand, as traders stocked up in anticipation of the Asian festive season shutting down the market. Throughout the first quarter, the US Amino Acid market was in limbo due to protracted port congestion and a disrupted supply chain from China owing to the CNY holidays. However, the high degree of Amino Acid consumption in the downstream businesses, on the other hand, provided a robust foundation. The discussions for Amino Acid in USA were assessed at USD1420 per MT in January.
Asia Pacific
During the 1st quarter of 2022, the prices of Amino Acid rose significantly across the Asia Pacific region on the back of the increased demand and consistent offtakes in the end-user industries. Amino Acid prices in China have been steadily rising for some time, as they were evaluated at USD970/mt FOB Qingdao in the month of January. International traders were experiencing a sharp increase in raw material costs, while the domestic downstream sector had been seeing strong offtakes. Furthermore, the local market was badly impacted by a production standstill in China due to high energy prices resulting from the Russia-Ukraine conflict. In addition, significant production facilities in China were temporarily shut down, hurting overall product supplies in the country. Ex-Hyderabad discussions for Amino Acid in the Indian domestic market in the month of March were assessed at USD1150 per MT.
Europe
In the European region, the price trend of Amino Acid hopped upwards in Q1 2022 as it followed the same market trend as the North America. The Amino Acid market in Europe showed favorable emotions as a result of the consistency in downstream offtakes. Increased raw material costs and a lengthy supply chain interruption from Asian countries, particularly Singapore and Japan, had a significant impact on the domestic market. Due to a scarcity of feedstock sources and high input costs because of the peaking energy crisis, domestic European producers were compelled to trade Amino Acid at slightly higher prices. In the second part of Q1, the Amino Acid market in Europe was further influenced by increased production costs due to high oil and gas prices amidst the Russia-Ukraine crisis. Amino acid prices in Europe were settled at USD1880/mt in the first month of the quarter.
For the Quarter Ending December 2021
North America
The prices of Amino Acids continued to hop upwards in the North American region on the back of the sharp increases in commodity and energy prices, labor shortages, freight charges, and the unprecedented spread of the coronavirus pandemic. The consumption volumes remained strong from the downstream food and beverages industry. Changing consumer habits as the end-clients increasingly demand full transparency about their ingredients, production processes, and supply chain is subsequently profiting margins in the US. The logistics issues and shortages of containers in China have further supported the price trend across the region.
Asia
In the Asian market, the pricing trend of Amino Acid witnessed an upward trajectory during the fourth quarter of 2021. In the Indian domestic market, the Ex-Hyderabad prices of Amino Acid escalated from USD 2355.58/mt to USD 2533.37/mt from October to December. Several Indian traders were battling with a steep hike in imported material cost while witnessing firm offtakes from the domestic downstream market. The production halt across China due to the shortage of coal has negatively impacted the Indian market, as several manufacturers were quoting out of availability for several Amino Acids. Additionally, several manufacturing units in China declared forced closure which affected the overall supplies of the product across China as well as in India.
Europe
The European market witnessed a hike in the Amino Acid prices in quarter four of 2021 amid persisting supply bottlenecks, rising commodity prices, and the emergence of the Omicron variant of the coronavirus. According to some recent surveys regarding European economic activity, the growth momentum remained weak at the start of Q4, in several sectors, owing to the above-mentioned supply bottlenecks. Skyrocketing shipping charges along with the shortage of containers further supported exacerbated the pricing trend of Amino acids in Europe.
For the Quarter Ending September 2021
North America
The prices of Amino Acids soared in the North American market during the third quarter of 2021 owing to its huge consumption in the food and beverages sector. The US market experienced mixed sentiments due to the delayed shipping of raw materials from Asia caused by the increasing cargo demand and shortages of containers in China. Increment in the shipping charges by more than 6 percent led to the steep rise in the prices of Amino Acids in the US. In addition, due to logistics problems, the time delivery to the US west coast increased from 3 weeks to 5-6 weeks, which further affected the Amino acid market outlook in Q3.
Asia
The Asian market outlook of Amino Acid witnessed an upward trajectory due to the increased demand from downstream industries in Q3 2021. A marginal surge in the prices of Amino Acid was observed during the third quarter due to the rising import cost. In China, the market recently encountered strict rules and regulations regarding the consumption of energy, which affected the overall output of Amino Acids of the country. The market price of Threonine rose, and the manufacturer's supply was tight. China’s threonine quotations stood around about USD1650-USD 1690/MT in September. Resolutely high freight rates under crippling container availability had further exacerbated the overall price scenario in the Asian Amino Acid market.
Europe
During the third quarter, there was an increment in the demand for Amino Acids in the European region backed by the domestic feed additive sector. Amino acid prices rose throughout the quarter in the market which was driven by the rising cargo demand and lack of containers from Asian countries due to the increasing shipping charges. Furthermore, delayed supply of raw materials from China hindered the Amino Acid market in Europe during Q3.
For Quarter Ending June 2021
North America
Amino Acid prices skyrocketed this year, as the demand from feed additives segment remained firm enough to drive its consumption. Prices primarily increased due to expensive cargoes of raw materials from Asia, especially from China. In USA, prices of Amino Acid started declining in the third week of April, supported by improved feedstock availability. However, major producers in USA revealed that the prices of Amino Acid remained volatile due to frequent fluctuations in the Asian market. In addition, high freight cost and critical shortage of shipping containers also provided additional burden over the prices during this timeframe.
Asia
Asia encountered an overall boom in demand for Amino Acid during Q2 2021. Manufacturers based in China revealed that they received massive enquiries from both domestic and international market, and thus operated their plants on high capacity. On the other side, demand in Indian market remained high as the domestic feed additives sector remained bullish throughout the quarter. Despite the off season, demand for Amino Acid from domestic feed additive sector remained high due to high demand for poultry meet in India, under influence of the ongoing pandemic in the country. Therefore, prices of Amino Acid rose from USD 2057/MT to USD 2203/MT within the quarter.
Europe
European Amino Acid sector showcased bullish sentiments throughout the quarter, thus the prices remained effectively high in the timeframe. The demand was majorly driven by domestic feed additive sector. Major reason behind this price rise was expensive cargoes from Asian countries due to the fuming freight cost and shortage of shipping containers across the prime trade routes. In addition, fluctuations in demand from the Asian market also remained a major concern for European traders, who were restraining from any loss in this volatile situation.
For the Quarter Ending March 2021
North America
Global rise in the prices of Amino Acids changed the market dynamics of the entire North America. Owing to firm demand from the domestic feed additives market, imports from China and other countries remained strong during the first quarter. Experts suggested to divert the imports of key materials like corn and soya to South America rather than buying from the domestic market at premium prices, to improve margins amidst surging market conditions. This prompted prices of Amino Acids like Lysin and Threonine to pick up across the region during this timeframe. Amino Acids are used in a wide variety of pharmaceutical and nutritional applications. Rising demand has fetched considerable margins to the regional producers.
Asia
The Asian market witnessed a boom in its Amino Acid prices with the supply side largely pressured amidst stable demand. Due to global feedstock shortage and high prices, major Amino Acids producers encountered difficulties in production. Qiqihar Longjiang Fufeng Biotechnologies Ltd. in China faced difficulties in production after the Lunar New Year holidays, as the feed market started booming again and they struggled to keep their production levels on peak. In addition, high freight prices further affected the prices of traded products and put extra burden on prices, like in the Indian market, price rose from USD 1860/MT to USD 2024.6/MT during Q1 2021.
Europe
The European market reported an upsurge in the prices of Amino Acid Lysin and Threonine amidst strong demand from the domestic feed additives sector. Shipping delays, high demand in China and logistical disruptions including longer delivery times at several European ports have been cited as key reasons for sharp price increases observed in several amino acids in Europe. Traders also indicated towards a lack of offers from most Chinese suppliers during Q1, while stocks available within Europe were available at increased prices amidst firming sentiments from the feed additives sector.
For the Quarter Ending December 2020
North America
Surge in demand for Amino Acid is observed in Canada, while the demand from USA has declined in Q4 2020, and the export from USA has increased in Q4. The prices in USA have declined by 3-5% respectively compared to Q3 2020. Upward price trend was witnessed in Canada with 4% increase in December 2020 in comparison to November 2020. Mixed demand was observed in North America, while Mexico reported surge in demand in September and December 2020, while the imports from USA increased in the country. However, a decline in import from China was observed. The prices of Amino Acid in North America witnessed a mixed trend and are expected to become stable in coming months.
Asia
Demand for Amino Acid remained firm in Asia Pacific region. Import of Amino Acid and its derivatives in Q4 2020 has increased by 16.80 percent compared to Q3 2020 in Japan. Continuous rise in demand of Amino Acid is also observed from China and South Korea. However, the demand from other APAC counties was moderate. L-Threonine 98.5% feed grade was traded at 940-1200 USD /MT across the APAC region. The prices of L-Threonine 98.5% feed grade have gradually increased in APAC region by 3-4% compared to the last quarter. Daesang Corporation, one of the major producer of Amino Acid and its derivatives, reported rise in export in Q4 2020, compared to Q3 2020. The consumption of Amino Acid is anticipated to increase in Q1 2021 which will fuel the prices of Amino Acid and its derivatives.
Europe
Prices of Amino Acid witnessed a V-shaped recovery in European region during Q4 2020. The price of Amino Acid in December 2020 increased by 2% compared to October 2020. The market sentiments have improved in Q4 2020 compared to Q3 of 2020. The exports from Turkey have risen by 93 percent compared to last quarter. France, United Kingdom, Lithuania, Switzerland, Spain and Russia reported increase in export compared to Q3 2020. The price of Amino Acid is anticipated to increase in Q1 2021 due to rising export and recovery in market across the globe.
