For the Quarter Ending September 2024
North America
In Q3 2024, the Methionine market in North America exhibited a persistent upward trajectory, with prices increasing due to a variety of key factors. A significant driver of this trend was the heightened demand from both end-user industries and distributors, who engaged in strategic stockpiling to manage potential disruptions and lead time challenges. The uncertainty surrounding supply chain reliability, especially in the context of global logistical challenges, prompted many companies to secure additional inventory, pushing demand higher.
The U.S. market experienced the most notable changes during the quarter, with a significant 3% price increase in the latter half. Several factors contributed to this rise, including ongoing disruptions in global supply chains, particularly in freight and shipping lanes, which delayed deliveries and exacerbated lead times. These challenges were compounded by increasing demand from sectors such as animal feed and nutrition, which rely heavily on Methionine as a key ingredient.
By the end of Q3 2024, DL-Methionine Feed grade was priced at USD 3,240 per metric ton on a CFR New York basis, highlighting the persistent upward pricing trend. This closing price not only underscores the sustained demand but also reflects the broader market sentiment, where companies remain cautious but proactive in managing inventories amid ongoing economic and logistical uncertainties.
Asia Pacific
In Q3 2024, Methionine prices across the APAC region experienced a marked increase, driven by several interrelated factors. Robust global demand, especially from key international markets, played a central role in pushing prices higher as orders surged and export activities intensified. This spike in global demand was partly due to preemptive actions by buyers seeking to secure adequate stocks ahead of the anticipated capacity constraints associated with the upcoming peak season. Supply chain challenges exacerbated the situation, with logistical disruptions further fueling price increases. The ongoing conflict in the Red Sea, which disrupted key shipping routes, led to a rise in freight costs, adding further upward pressure on Methionine prices. These logistical hurdles contributed to the overall tightening of supply, making it more difficult for companies to meet the growing demand. China, in particular, experienced the most pronounced price fluctuations within the APAC region. These fluctuations were driven by a combination of global uncertainties, economic pressures, and cautious behavior from buyers who closely monitored market conditions. Despite these challenges, the quarter exhibited a steady upward trend in pricing, with a 3% increase recorded between the first and second halves of the quarter. By the end of Q3 2024, the price of DL-Methionine Feed grade reached USD 2,995 per metric ton FOB Shanghai, reflecting the overall positive pricing sentiment in the region.
Europe
In Q3 2024, Methionine pricing in Europe experienced a notable uptrend, marked by several key factors. The market saw an increase in prices driven by a combination of factors, including robust demand, logistical disruptions, and rising operational costs. Demand for Methionine remained strong, supported by steady consumer spending and peak season requirements. Concurrently, logistical challenges, such as congestion at key shipping hubs and increased freight costs, put additional pressure on prices. The overall pricing environment in the region reflected a positive sentiment, with prices steadily climbing throughout the quarter. In Germany, which witnessed the most significant price changes, Methionine prices fluctuated notably. The market experienced both highs and lows, influenced by factors such as economic conditions, supply chain disruptions, and currency fluctuations. Despite these fluctuations, the overall trend showed an upward trajectory, with prices steadily increasing over the quarter. Seasonality played a role in price changes, with the first half of the quarter recording a slight price difference compared to the second half. Ending the quarter at USD 3440/MT for DL-Methionine Feed grade CFR Hamburg, Germany's market reflected a positive pricing environment amidst fluctuating conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, Methionine pricing in the North America region experienced an upward trajectory, heavily influenced by several significant market dynamics. The period was marked by a notable surge in consumer confidence, reflecting a positive economic outlook that drove increased spending on essential commodities, including Methionine.
Furthermore, unanticipated early peak season demand added pressure to the supply chain, contributing to price hikes. Market optimism was bolstered by a gradual recovery in global trade and strategic pricing measures by major shipping companies, which anticipated a resurgence in trade volumes. The USA, in particular, saw the most substantial price changes, primarily driven by heightened demand for feed grade Methionine. The early arrival of the peak season introduced uncertainties, leading to supply shortages and subsequent price increases. Seasonal factors also played a role, with the summer months typically witnessing higher demand for livestock feed additives. Compared to the same quarter in the previous year, prices reflected a strong upward trend, while the quarter-on-quarter comparison recorded a 5% increase. The first half of the quarter saw a 5% price escalation compared to the latter half, underscoring sustained demand pressures.
Disruptions such as the Force Majeure event at Novus International's Gulf Coast plant due to flooding further strained supply, although the impact was short-term. By the quarter's end, DL-Methionine Feed grade CFR New York prices reached USD 3235/MT, underscoring a consistently positive pricing environment throughout the period.
APAC
In Q2 2024, the Methionine market in the APAC region experienced a notable increase in prices, driven by a myriad of compelling factors. This quarter saw a sustained positive sentiment, majorly influenced by robust demand dynamics and supply-side constraints. Significant contributors to this upward pricing trend included a strong post-lunar year demand surge, which strained existing supplies and led to heightened competition among buyers. The manufacturing sector's steady recovery and rebound in industrial activities also played a crucial role, as evidenced by increased manufacturing output and new orders. This resurgence was complemented by an uptick in overseas demand, further bolstering Methionine prices. Focusing on China, which witnessed the highest price changes, the market dynamics were particularly compelling. The overall trends indicated a positive correlation with increased industrial activity and seasonal demand peaks. Price changes were also influenced by reduced input costs, particularly methanol, which saw a decline in prices, thus affecting production costs for Methionine. Disruptions, including plant shutdowns, notably at major facilities such as Bluestar Adisseo and Evonik, further constrained supply, exacerbating the upward pressure on prices. The price comparison between the first and second half of the quarter marked a 3% increase, reflecting the sustained demand and limited supply. The quarter concluded with Methionine Feed grade FOB Shanghai prices reaching USD 3000/MT, underscoring a 4% increase from the previous quarter in 2024. This steady increase in prices highlights the positive pricing environment, driven by robust demand, supply constraints, and significant market disruptions.
Europe
In Q2 2024, Methionine prices in the Europe region experienced a notable upward trajectory, driven by a confluence of factors that fostered an environment of rising costs. The quarter was marked by increased demand, particularly in the animal feed sector, heightened economic activity, and logistical challenges that compounded supply constraints. Key influences included the eurozone's sustained economic growth, which bolstered overall industrial demand, while adverse weather conditions and port congestions in Northern Europe exacerbated shipment delays and elevated transportation expenses. Additionally, fluctuations in the Euro's value against the USD led to higher import costs, further intensifying price pressures. Germany, in particular, saw the most pronounced price escalations. The country's robust industrial activities and strong demand for feed-grade Methionine catalyzed significant price increases, reflecting broader regional trends. Seasonality played a pivotal role, with the second half of the quarter witnessing higher prices due to peak demand periods. The overall trend in Germany underscored a sustained upward momentum, with prices demonstrating a 3% increase from the previous quarter in 2024 and a 2% rise between the first and second halves of Q2. The positive pricing environment culminated in a quarter-ending price of USD 3220/MT for DL-Methionine Feed grade CFR Hamburg, illustrating the persistent upward pressure on market prices.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Methionine market in North America underwent a mixed pricing environment, characterized by fluctuations influenced by various factors. The overall trend for Methionine prices during this period displayed both positive and negative movements, largely driven by shifts in demand from downstream industries.
Initially, prices surged due to heightened buying activity in sectors such as food, nutraceuticals, and healthcare. However, challenges arose in the supply chain, with disruptions at key shipping chokepoints like the Red Sea and the Panama Canal causing delays in product delivery, including methionine and other goods. Towards the end of the quarter, prices experienced a decline attributed to a downturn in business sentiments, casting uncertainty over the economy. Additionally, efforts to curb rising prices led to actions such as the Federal Reserve raising interest rates to counter inflationary pressures. This move strained consumers' finances, diminishing their purchasing power and further dampening demand in the USA market.
Overall, the pricing environment for Methionine in Q1 2024 witnessed fluctuations influenced by demand, supply chain disruptions, and economic conditions. The quarter concluded with DL-Methionine Feed grade CFR New York in the USA priced at USD 3085 per metric ton, reflecting the complex dynamics at play during this period.
Asia Pacific
During the first quarter of 2024, Methionine pricing dynamics in the APAC region, particularly in China, underwent notable fluctuations. The overall trend in Methionine prices in China during this period displayed a mixed pattern, with increases in January and February followed by a decline in March. The price surge at the beginning of the quarter was driven by a surge in demand for Methionine across various applications, including animal feed, food additives, and pharmaceuticals. Additionally, the rise in costs of crucial raw materials such as ammonia and methanol contributed to heightened production expenses, further supporting the upward trajectory of prices. Concerns regarding the stability and shelf life of existing supplies as the summer months approached also prompted proactive buying behavior, intensifying the intricate interplay of factors impacting market dynamics and contributing to the overall increase in Methionine prices. However, despite the initial surge in demand, prices experienced a decline by the quarter's end. Several factors contributed to this decline, including concerns about insufficient domestic demand, despite an uptick in economic activity in China following the extended holiday period. Additionally, the absence of inquiries from international markets further exacerbated the downward pressure on prices. It's important to note that the final reported price for DL-Methionine Feed grade FOB Shanghai in China stood at USD 2930 per metric ton, reflecting the complex and dynamic nature of Methionine pricing during Q1 2024.
Europe
In the first quarter of 2024, the pricing dynamics of Methionine in Europe presented a nuanced landscape influenced by various factors, particularly notable in Germany where pricing fluctuations were pronounced. At the quarter's onset, prices saw an increase driven by factors such as geopolitical tensions, logistical challenges, and limited inventories. Disruptions in shipping and logistics during the Spring festival in China exacerbated delays and increased transportation expenses, impacting the timely delivery of Methionine to the market. Limited inventories within the supply chain exacerbated the supply shortage, contributing to the rise in prices. By the end of the quarter, in March, prices showed contrasting trajectories in the feed and food grade sectors. In the feed grade sector, prices demonstrated a moderate uptick fueled by heightened demand in segments like animal feed and food supplements. This surge was propelled by factors including the stabilization of the eurozone's economic landscape, growing business optimism, and a decrease in inflation, all stimulating Methionine demand. Conversely, the food grade sector witnessed a notable price downturn due to subdued domestic demand from food industries juxtaposed with a relatively sufficient backlog. Overall, the pricing dynamics of Methionine in Europe during Q1 2024 reflected a complex interplay of factors, driving nuanced fluctuations in prices across different sectors and regions, particularly evident in Germany.
For the Quarter Ending December 2023
North America
The Methionine market in North America faced challenges during the fourth quarter of 2023, marked by notable factors such as persistent inflation, seasonal variations, and increased interest rates. Prices exhibited a mixed trend throughout the quarter, reflecting the complex dynamics influencing the market.
One of the primary factors influencing the market was the persistent high inflation, which led to increased costs and reduced consumer spending. This resulted in decreased demand for Methionine-containing products in the food and pharmaceutical sectors. Additionally, heightened competition among distributors and suppliers put downward pressure on prices in the food-grade Methionine segment. On the other hand, the demand for Methionine in the animal feed sector remained steady, driven by the continued operations of livestock farms and poultry producers. The winter season also contributed to the positive market sentiment in the feed grade sector, as it prompted an increased demand for feed additives like Methionine to support animal health and growth.
In the United States, Methionine prices experienced a mixed trend during the quarter. Food-grade prices decreased due to reduced consumer spending and increased competition, while feed-grade prices increased due to steady demand from the animal feed sector. The latest price of DL-Methionine Feed grade CFR New York in the USA for the fourth quarter of 2023 is USD 2820/MT.
APAC
During the fourth quarter of 2023, the Methionine market in the APAC region exhibited a mixed trend. Initially, prices saw an increase as market participants focused on replenishing their inventories. The surge in Crude oil prices, attributed to the extension of oil production cuts by OPEC+ countries and the Israel-Hamas conflict, resulted in elevated manufacturing costs and subsequently higher Methionine prices. In the middle of the quarter, the food supplement sector showed overall stability, marked by reduced inquiries from both domestic and international markets. However, the feed grade sector experienced an improvement in domestic orders and export sales. By the end of Q4, prices declined, influenced by a decrease in new order inquiries both domestically and internationally. The reduced domestic demand can be attributed to deflationary pressures in China, leading consumers to defer purchases in anticipation of further price declines, consequently impacting overall consumption. In terms of China, the prices of Methionine exhibited a 4% increase from the previous quarter. The market dynamics in China were influenced by the resurgence of its manufacturing sector, strong demand from end-users, and the elevated cost of raw materials. The price of DL-Methionine Feed grade FOB Shanghai in China for the fourth quarter of 2023 was USD 2700/MT.
Europe
During the fourth quarter of 2023, the Methionine market in Europe witnessed significant fluctuations, influenced by various factors. Initially, a scarcity of available stock and heightened demand from end-consumers led to a substantial increase in prices. Moreover, elevated energy prices and increased transportation costs further contributed to an upward movement in Methionine prices. Germany, in particular, experienced the most pronounced price changes, driven by a surge in demand across various sectors, resulting in tightened market conditions and price escalations. Additionally, the depreciation of the Euro against the USD added to import costs, exerting upward pressure on prices. Midway through the quarter, Methionine prices exhibited a diverse trend, characterized by varying fluctuations in the food and feed grade sectors. Towards the end of Q4, Methionine prices underwent a downturn, primarily influenced by reduced demand from both the food and feed grade sectors. An important contributing factor was the unexpected decline in German business morale, impacting many retailers and leading to a notable acceleration in the reduction of both sales and new orders, supporting the downward trajectory of Methionine prices. The closing price for the quarter in Germany was USD 2880/MT of DL-Methionine Feed grade CFR Hamburg.
For the Quarter Ending September 2023
North America
The prices of Methionine experienced a notable decrease of 6.47 percent in July, followed by a slight increase of 8.18 percent in August and a modest rise of 5.04 percent in September. In July, new order inquiries and sales decreased as local and worldwide demand remained poor. In July, the Federal Reserve raised its main policy interest rate by a quarter percentage point, the highest level in 22 years, lowering overall demand and supporting the downward trend. Prices grew in August and September, however, as a result of a rise in energy prices, which increased total company expenditures and transportation costs, resulting in an increase in Methionine pricing. As Russia and Saudi Arabia continued dramatic supply cutbacks, gasoline prices increased, pushing crude oil to a 10-month high of $91 per barrel. Furthermore, imports from key exporting nations such as China fell, restricting supply and driving up prices in the US market. Market players prioritized inventory replenishment, which led to the rise in Methionine price. Prices concluded at USD 2710/MT CFR New York at the end of Q3.
Asia Pacific
The prices of Methionine experienced a notable decrease of 6.93 percent in July, followed by a slight increase of 12.87% in August and a modest rise of 4.00% in September. Methionine prices fell in July as industrial activity slowed and demand from downstream industries declined. The official manufacturing PMI (Purchasing Managers Index) in July was 49.3, indicating that factory activity in China fell for the fourth consecutive month as a result of lower foreign orders and inadequate local demand. Methionine prices grew in August and September due to increased end-consumer demand and limited supply in the market due to the industrial sector's fifth consecutive month of decline. Furthermore, despite economic concerns, China's central bank reduces its main interest rate, which serves to encourage market consumption, resulting in increased Methionine costs in China. In September, China's manufacturing purchasing managers' index (PMI) rose slowly back into the growing zone, revealing the restoration of industrial activity and predicting a positive economic resurgence in the country. Prices concluded at USD 2600/MT FOB Shanghai at the end of Q3.
Europe
The prices of Methionine displayed a noteworthy decrease of 6.60 percent in July, followed by a modest increase of 9.64% and 4.69% in the months of August and September, respectively. Methionine prices declined in July due to a slowdown in business activity and a decrease in downstream sector demand. The sharp reduction in goods demand can be attributed to a variety of factors, including customer apprehension, destocking, and rising borrowing rates, as well as tightening market conditions and economic and geopolitical uncertainties. Prices rose in August and September as a result of ongoing inflation, rising interest rates, and the oil crisis. In August, the German inflation rate was +6.1%, as measured by the year-on-year rise in the consumer price index (CPI). Food and energy prices have risen faster than average inflation, adding to high inflation. Prices for energy goods jumped 8.3% year on year, following a 5.7% increase in July. Businesses' spending and operating costs grow as a result of persistently rising inflation, resulting to higher Methionine prices in Germany. Prices concluded at USD 2680/MT CFR Hamburg at the end of Q3.
For the Quarter Ending June 2023
North America
In the United States, the prices of Methionine decreased by 16.57% and 0.83%, respectively, for food grade and feed grade respectively, from April, suggesting prices remained on the weaker side in the second quarter. The factors include increased supply and weaker demand in domestic as well as foreign markets. The PMI (Purchasing Managers' Index) also dropped to 46.3 in June compared to the beginning of the second quarter, explaining decreased purchasing activity from end consumers. Since there is less demand in the market, market participants have reduced the price of Methionine to free up their existing inventory. The cost of energy, which is a major input cost for production, has fallen in recent months due to the slowdown in the global economy coupled with lower oil prices, which further supports Methionine's downward trajectory. Additionally, high-interest rates have reduced demand for Methionine in the US market, driving prices down. Additionally, the US dollar appreciated against the Chinese yuan in June, making US imports cheaper and increasing the availability of Methionine, resulting in lower methionine prices.
Asia Pacific
In China, the prices of Methionine declined by 16.57% and 0.83% for food grade and feed grade, respectively, from April levels because of the lowering demand in the food and beverage, nutraceutical, and pharmaceutical industries in the second quarter. Their market position remained weak due to an increase in inventories at the beginning of Q2. Reduced offtakes from both domestic and foreign markets contributed to the continuation of the weakening trend. The official manufacturing purchasing managers' index (PMI) dropped to 48.8 in May from 49.2 in April. This suggests that the manufacturing sector has contracted throughout Q2, leading to less production activity because of weakened demand from end sectors. The follow-up for new orders also declined at a faster pace in Q2. Market providers cut down prices in order to clear their inventories and maintain profitability. Apart from that, extreme temperatures in June also hampered the trading activity in the second quarter, increased the supply in the Chinese domestic market, further increasing downward pressure on prices.
Europe
The Methionine price in June dropped by 0.79% and 10.71% for feed grade and food grade, respectively, from April levels, indicating prices remain on the weaker side in the second quarter. Factors like low purchasing activity and ample inventories in the German market contributed to this downward trajectory. In Germany, the manufacturing PMI (Purchasing Managers Index) for June 2023 fell to 41 from 43.2 in May and 44.5 in April, indicating a slump in manufacturing due to the impact of the COVID-19 pandemic. Weak end-user demand leads to a faster decline in new orders. As per the Federal Statistical Office, inflation, as measured by the CPI (consumer price index), hit 6.4% in June, up 0.2% from May. The European Central Bank raised interest rates to curb inflation, leading to lower consumer demand. In addition, the appreciation of the Euro against the US dollar in June made imports cheaper and increased the availability of Methionine on the German market. This further put downward pressure on methionine prices.
For the Quarter Ending March 2023
North America
The prices of Methionine in the North American region witnessed depreciating market sentiments throughout the first Quarter of 2023. At the termination of Q1 2023, prices of Methionine were assessed at USD 2775/MT Feed grade CFR New York and USD 4720/MT Food grade CFR New York with an average quarterly decline of 3.25% and 1.71%, respectively. The cost of raw materials declined for both the feed and food grade markets, which had an impact on production costs and, ultimately, on domestic market pricing. The demand for both grades was steady in January, but as February got underway, the market position was significantly impacted by the offtake from both the local and foreign markets. Additionally, since the market participants were left with ample stocks and inventories, this droves them to cut their quotations in order to sell off the existing goods. Additionally, the North American region saw significant reductions in freight and transportation costs, which further accelerated the downward trend.
Asia
The prices of Methionine in the Asia Pacific region witnessed mixed market sentiments throughout the first Quarter of 2023. At the termination of Q1 2023, prices of Methionine were assessed at USD 2465/MT Feed grade FOB Shanghai and USD 4465/MT Food grade FOB Shanghai with an average quarterly decline of 2.31% and incline of 0.50%, respectively. For both the feed and food grade markets, the prices of raw materials decreased, which influenced the production cost, and eventually, the prices decreased in the domestic market. The demand for both grades was consistent in January, but with the commencement of February, the offtake from both the domestic and international markets negatively influenced the market situation. Also, as the market players left with enough stocks and stockpiled inventories, this propelled them to lower their quotations to clear out the existing stocks.
Europe
The prices of Methionine in the European region witnessed depreciating market sentiments throughout the first Quarter of 2023. At the termination of Q1 2023, prices of Methionine were assessed at USD 2580/MT Feed grade CFR Hamburg and USD 4670/MT Food grade CFR Hamburg with an average quarterly decline of 2.82% and 1.36%, respectively. The cost of raw materials declined for both the feed and food grade markets, which had an impact on production costs and, ultimately, on domestic market pricing. The demand for both grades was steady in January, but as February got underway, the market position was significantly impacted by the offtake from both the local and foreign markets. Additionally, since the market participants were left with ample stocks and inventories, this droves them to cut their quotations in order to sell off the existing goods. Additionally, the European region saw significant reductions in freight and transportation costs, which further accelerated the downward trend.
For the Quarter Ending December 2022
North America
In the North American region, primarily the United States market, the prices of DL-methionine plummeted during the final Quarter of 2022. With the commencement of the fourth quarter, the prices decreased considerably as the demand for both food and feed grade declined. In the fourth quarter of 2022, DL-methionine continued to drop, with CFR New York prices for food and feed grade settling at $4990/MT and $3070/MT, respectively, in December. Enough inventories among the market players and domestic merchants supported the market situation in the fourth quarter of 2022. The prices for food grade improved at the termination of Q4 2022 with the rise in demand from the downstream sector.
Asia
The prices of Methionine in the Asia Pacific region, majorly in China, demonstrated mixed market sentiments throughout the last Quarter of 2022. Although, in October, the prices for Methionine inclined significantly following November official manufacturing purchasing managers index (PMI) fell to 48.0 in November, slipping well below last month’s reading of 49.2 along with reducing inquiries kept the prices of Methionine on the lower side. With the ending of the fourth quarter, i.e., in December, the prices of Methionine inclined again with a settlement at USD 4410 /MT FOB Shanghai Food Grade.
Europe
Following a downward trend over the fourth quarter of 2022, the CFR Hamburg negotiations for Food grade and Feed grade Methionine in Germany were resolved at $4880/MT and $2820/MT, respectively, in the month of December. The on-and-off port restrictions in China made the business climate in Europe worse, together with the unrest in Russia and Ukraine. On the demand front, offtakes in the end-user industries during this quarter ranged from modest to stable. Additionally, this quarter witnessed a continuous lackluster demand from the feed sector. On the contrary, the market situation for food grade improved with a slight rise in the inquiries from the end-user sector.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, demand from North American consumers for DL-methionine continued to drop, with CFR New York prices for food and feed grade settling at $5530/mt and $4057/mt in September. Because of China's zero-covid policy, imports of amino acids, including Methionine, to the US were severely restricted. The heat wave and power shortage forced the shutdown of numerous Chinese production facilities in the second half of Q3, and other companies that make various Amino Acids also went into maintenance, which had a detrimental impact on US trade. Many businesses and industries attributed the nation's declining demand to a variety of issues, such as inflation, supply shortages, and excessive interest rates.
Asia
The market trend for DL-methionine in the Asia Pacific region demonstrated a negative tendency, with September values for the food and feed grades settling at $4370/mt and $2850/mt, respectively. Raw material cost volatility, tepid consumer spending, and weak end-user industry demand are a few variables that have contributed to this pricing pattern. Big suppliers held off on placing large orders during the first half due to the sluggish offtakes and weak downstream demand. When the markets resumed operations in the final week of July following the shutdown, some manufacturing facilities, including Vega Pharma, Prumix, and others, were under maintenance, which impacted the product supply for both domestic and foreign suppliers. The market dynamics in China were also severely harmed this quarter by extreme weather and power outages.
Europe
Following a downward trend over the third quarter of 2022, the CFR Hamburg negotiations for Food grade and Feed grade Methionine in Germany were resolved at $4870/MT to $3420/MT in September. The on-and-off port restrictions in China made the business climate in Europe worse, together with the unrest in Russia and Ukraine. On the demand front, offtakes in the end-user industries during this quarter ranged from modest to stable. Additionally, this quarter witnessed a lackluster demand from the food and feed sectors.
