For the Quarter Ending December 2024
North America
The U.S. L-Threonine market in Q4 2024 exhibited a complex scenario with contrasting market forces. Feed-grade L-Threonine saw significant price increases due to robust demand from the animal feed sector and logistical disruptions, particularly from port strikes and higher international shipping costs.
The heightened supply chain pressure from strikes at U.S. ports and increased shipping expenses from Asia drove up landed costs, amplifying price pressures. In contrast, food-grade L-threonine prices experienced a downward trend, mainly due to oversupply and low trading volumes. Increased production and growing inventory levels, coupled with weaker demand, kept prices under pressure. Despite supplier efforts to offer discounts, a general bearish market sentiment prevailed. The market also contended with rising costs from Chinese suppliers, who raised export prices due to higher feedstock costs and production expenses, further strained by the volatile dollar-yuan exchange rate.
However, Chinese suppliers' attempts to liquidate stock resulted in a slower price escalation, as U.S. buyers took advantage of competitively priced imports. Reduced domestic consumption and limited spot buying compounded the oversupply, resulting in a weaker price trajectory. By December 2024, the market showed no clear signs of recovery, indicating a challenging near-term outlook, as U.S. buyers leveraged the availability of competitively priced imports to manage costs amid muted domestic consumption for both grades.
APAC
In the Chinese market for L-Threonine, the quarter witnessed a steady rise in export prices, for both feed and food grade largely driven by cautious demand from key sectors like animal feed and food additives. Despite weaker raw material prices, particularly corn derivatives, manufacturers maintained elevated production costs due to logistical challenges and higher storage expenses. The appreciation of the U.S. dollar against the yuan further supported the decision to uphold strong pricing strategies. At the same time, demand remained relatively stable, though buyers were selective, with many opting for smaller, targeted purchases due to the high price levels. While geopolitical factors such as potential U.S. tariff changes influenced pricing strategies, the overall market sentiment was optimistic, as inquiries remained steady both domestically and internationally. Improved logistics and seasonal upticks in export orders bolstered activity, although competition among suppliers intensified as limited buyer engagement led to aggressive pricing adjustments. Manufacturers navigated this market environment carefully, with strategic planning necessary to manage ongoing supply challenges and price fluctuations. Looking ahead, until November 2024, the outlook suggests sustained demand. While, December’s trends in China’s L-Threonine markets highlight subdued demand and bearish sentiment. Factories maintain steady quotations and ensure a robust supply of domestic and international brands with respect to the demand side, However, November's month-over-month solid Threonine imports reflect efforts to manage supply despite limited buyer interest. Buyers remain cautious, limiting purchases to immediate needs, which has intensified price competition among suppliers and supported an overall downward trend.
Europe
The German L-Threonine market in the quarter experienced nuanced strategic positioning amidst complex global dynamics. Manufacturers navigated challenging terrain by implementing adaptive pricing strategies that balanced production costs with market demand. Despite fluctuating raw material prices, particularly in corn derivatives, companies maintained resilient operational approaches. Market sentiment was characterized by measured optimism, with producers carefully calibrating supply chains to match evolving international requirements. Strategic inventory management became crucial, with companies focusing on efficient logistics and precise demand forecasting. The interplay between domestic production capabilities and international market signals created a sophisticated economic ecosystem. Manufacturers responded by developing flexible pricing models and diversifying their market engagement strategies. The food additive and animal feed sectors demonstrated particular interest, driving subtle but consistent market movements. As a result, the overall landscape reflected a complex balance between cautious restraint and strategic opportunity, underscoring the sophisticated nature of the L-Threonine market in the German region.
For the Quarter Ending September 2024
North America
In Q3 2024, the Threonine market in North America observed a period of stability in pricing concerning both the feed and food grade. This stability was influenced by several key factors, including supply chain disruptions, consistent demand from the feed sector, and strategic inventory management by suppliers.
Concerning the feed grade threonine, the market maintained equilibrium due to a balanced supply-demand dynamic, with prices experiencing a modest downward trend in the middle of the quarter. Conversely, food-grade Threonine prices saw a persistent rise in demand, reflecting a robot procurement behavior among downstream buyers. The USA, with the most significant price changes, exhibited a mix of positive and negative trends, with feed-grade prices showing resilience and food-grade prices demonstrating a significant upward trajectory. Supporting to this further, throughout the quarter, increased production costs, influenced by various factors like geopolitical events plant maintenance in the month of July-august, played a significant role in driving prices higher. The depreciation of the US dollar against other currencies inflated import costs, adding to the price escalation.
Overall, the quarter recorded a 4% and 1% increase from the previous quarter, indicating a steady market environment. The stable sentiment persisted throughout the quarter, culminating in a quarter-end price of USD 1600/MT for L-Threonine Feed grade CFR New York and USD 2500/MT L-Threonine Food grade CFR New York in the USA.
APAC
Throughout Q3 2024, Threonine prices in the APAC region remained elevated for both feed and food-grade products, supported by a stable supply-demand balance. For feed-grade Threonine, consistent production levels, effective inventory management, and prudent purchasing strategies from buyers contributed to price stability. In contrast, food-grade Threonine saw stronger price growth due to continuous demand from the downstream food and nutraceutical sectors, both regionally and internationally. The Chinese market, in particular, experienced notable fluctuations due to regional factors, including a container shortage in northern China and escalating freight costs, which increased export prices and indirectly benefited importing countries. Additionally, raw material markets provided cost support as feedstock prices stabilized and showed slight improvements, further pushing up product prices. Chinese traders responded by raising selling prices for existing inventories, reinforcing the overall upward trend. By the end of the quarter, Threonine prices had increased by 0.12% for feed grade and 2% for food grade, with quarter-ending prices at USD 1,340/MT for feed-grade L-Threonine and USD 2,250/MT for food-grade L-Threonine, both FOB Shanghai. These developments underscored the strong and consistent pricing sentiment observed throughout Q3 2024.
Europe
In Q3 2024, the Threonine market in Europe remained stable, with prices showing a consistent trajectory despite various influencing factors. The market was largely influenced by factors such as steady supply dynamics, and higher demand supporting an optimistic trading sentiment. The threonine market has seen a surge in demand from key sectors, particularly animal feed and pharmaceuticals, where it is used as an essential component for livestock nutrition and overall health. As consumers and manufacturers prioritize high-quality feed ingredients to enhance livestock productivity, the uptick in demand has put upward pressure on prices. Secondly, the price rise in key producing nations further supports this month’s market trajectory. Additionally, currency dynamics have played a significant role in the price fluctuations of threonine as well. With the euro appreciating against the USD throughout the quarter, has provided some resiliency among trades, even as imports continued to remain elevated. However, the market witnessed a steady drop in feed grade in the middle of the quarter with a balanced supply-demand outlook, resulting in an overall optimistic trajectory. As a result, the overall stability in prices can be attributed to the balanced interaction between supply and demand, with market participants navigating uncertainties cautiously. Seasonality and correlation in price changes remained evident, with a noticeable 6 and 1 percent increase from the previous quarter. The quarter ended with the price of L-Threonine Feed grade CFR Hamburg at USD 1575/MT and USD 2400/MT -Threonine Food grade CFR Hamburg in Germany respectively, showcasing a stable pricing environment for the entire quarter.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, the market for both feed-grade and food-grade threonine showed a mixed trajectory, with prices fluctuating between increases and decreases. Initially, feed-grade threonine prices rose, driven by a modest resurgence in local purchasing activity in the U.S. and a slight easing in freight charges. This optimistic trend was bolstered by new inquiries and traders focusing on bulk procurement and inventory replenishment.
However, as May began, prices dropped steadily resulting in a a balance between supply and demand, along with rising inflation and stagnant wages cooling downstream consumer spending growth. By June, feed-grade threonine prices increased again as end-user inquiries surged, allowing traders and suppliers to replenish inventories. Rising feedstock prices further stimulated production in key manufacturing sectors, benefiting suppliers with improved profit margins and market sales. Conversely, food-grade threonine prices rose until mid-quarter, supported by persistent regional quotations from end-users and supply constraints caused by trade disputes, extended transit times, and port congestion. However, prices dropped significantly towards the quarter's end. This decline resulted from manufacturers implementing well-calibrated production strategies to avoid significant inventory accumulation. Export market dynamics indicated a potential decline in enterprise-level threonine imports, maintaining a stable supply equilibrium. Downstream participants adopted a cautious approach, placing orders only to meet immediate needs, raising concerns among domestic retailers and suppliers about potential destocking practices.
Overall, the threonine market exhibited a varied demand outlook, with mixed transaction volumes for both feed-grade and food-grade products. The feed-grade sector experienced fluctuating prices due to changing demand and supply dynamics, while the food-grade sector dealt with persistent supply constraints and eventual price drops. These factors contributed to a complex market landscape, with stakeholders navigating a balance between supply, demand, and pricing pressures throughout the quarter.
APAC
During the second quarter of 2024, the Threonine market across the APAC region, primarily China encountered challenges characterized by price fluctuations and an overall mixed pricing trend. Concerning the grade during April, the market outlook for Threonine witnessed a steady rebound in terms of trade from China. Manufacturing sentiments in the market improved, albeit at a slower rate, as traders gradually focused on clearing their existing stocks first. Additionally, the depreciation of the Chinese currency (CNY) against the US dollar has contributed to the overall resilience of the market, providing additional momentum to the upward price trend. Furthermore, China's manufacturing and services activities both expanded at a slower pace, as indicated by official surveys, suggesting a loss of momentum for the world's second-biggest economy at the beginning of the second quarter. The National Bureau of Statistics (NBS) manufacturing Purchasing Managers' Index (PMI) increased to 50.4 in April from 50.8 in March, remaining above the 50-mark that separates growth from contraction and slightly exceeding the median forecast of 50.3. However, as of June 2024, the prices for feed grade dropped steadily. Concerning the feed grade, the overall market supply of threonine has not seen significant changes. This steady supply and average demand, indicates a well-balanced production strategy by manufacturers to avoid significant inventory build-ups. While, on the food grade side, the market witnessed a persistent rise in regional and overseas market demand with trades actively focused on clearing their inventories yet at a higher rate. Additionally, international trade disputes, tariffs, and geopolitical tensions disrupted global supply chains and impacted demand for imported Threonine. This resulted in uncertainties in key markets, affecting or delaying product availability, causing container shortages, and leading to longer lead times, thereby affecting the overall trade dynamics. Lastly, moving forward towards the termination of the quarter, the prices for feed grade threonine resurged yet again, balancing an overall supply-demand side. At the same time, the downstream quotations concerning the food grade dropped considerably, yet balancing the overall market trading atmosphere with traders and suppliers actively clearing their inventories on need basis.
Europe
In Q2 2024, Threonine pricing in Europe reflected a predominantly upward trend with modest drop in both the grades, driven by a confluence of factors. Focusing on Germany, the most substantial price movements were observed. The overall trend in Germany mirrored the regional sentiment of key producing nations but with more pronounced intensity. The quarter has been marked by rising market prices for both feed and food grade, largely fuelled by heightened demand from downstream sectors such as nutraceuticals and supplements. This surge in demand was further bolstered by cost support from the feedstock corn market, which pushed overall production costs higher. Additionally, persistent logistical challenges, including increased freight charges and the lingering impacts of disruptions like the Red Sea shipping route blockage, significantly contributed to the price hikes. Supply constraints also played a pivotal role, with some plants experiencing temporary shutdowns during the quarter, further tightening the market. Furthermore, seasonal factors, including a strategic buildup of inventories ahead of potential summer stock shortfalls, influenced the pricing dynamics. The correlation between supply constraints and increased demand underscored a consistent rise in prices throughout the quarter. However, the market gradually varied in the middle of the quarter with feed grade prices declined yet at a steady rate. On the market side, the 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. Lastly, ending the quarter in June 2024, the prices for feed grade rose steadily yet again while those of food grade declined considerably. Still the overall purchasing was primarily made on an as-needed basis, with clients buying according to their stock consumption. Overall, the market sentiments concerning the Threonine remained on the optimistic side throughout the quarter with slight variations in both feed and food grade.
By the end of Q2 2024, the price of L-Threonine Feed grade CFR Hamburg in Germany reached USD 1505/MT, reinforcing a positive pricing environment. This upward trajectory reflects a stabilized yet assertive market sentiment, driven by a mix of demand resurgence and strategic inventory management amidst ongoing supply and logistical challenges.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, Threonine prices in the North American region followed a generally negative trend in the feed grade and food grade market, while showing a steady recovery in the food grade sector by mid-quarter. While the USA market experienced significant price fluctuations, a closer look reveals a complex picture for the quarter. Pricing dynamics were influenced by a mix of factors including supply and demand shifts, global economic conditions, and geopolitical tensions.
In January 2024, demand for Threonine in both feed and food grade sectors remained subdued in the regional market. Supply of Threonine was moderate during this period, aligning with the regional inquiries and maintaining a balanced market scenario. Additionally, there was a notable drop in the price of feedstock Corn, which influenced Threonine pricing downwards. This was further supported by an abundance of stocks witnessed in exporting nations which dampened the overall purchasing sentiment and prompted merchants to destock their inventories at discounted rates. Meanwhile, as a key importer of Threonine, the USA took strategic steps to bolster its global competitiveness. Through adjustments in pricing strategies, the USA wielded significant influence over the global Threonine market, triggering price reductions worldwide.
Further, moving into the middle of the quarter, while demand from feed industries continued to remain on the lower side, there was a steady increase in purchasing from the food sector. This uptick in demand was met with sufficient inventories among merchants, balancing the market dynamics. while the reopening of the exporting nation following a 15-day holiday and full resumption of transportation services resulted in heightened prices in the exporting country as inquiries from both the regional and overseas quotations resumed at a normal level, which in turn affected the US market. Moreover, elevated freight rates significantly impacted the cost dynamics, lending support to Threonine prices for food grade.
Lastly towards the termination of the quarter, i.e., in March 2024, the Threonine market experienced another price downturn for both the grades, marked by limited purchasing and higher merchant stocks. Lower freight charges and the continued strength of the dollar against producing nation currencies provided some resilience and buying opportunities at reduced rates. The enhanced availability of these products relieved worries about potential supply shortages, resulting in decreased prices. Nonetheless, despite these favorable advancements, challenges arose from subdued demand, sluggish purchasing, and diminished consumer confidence. These factors collectively dampened market sentiment, leading market participants to employ more assertive pricing tactics to boost demand and reduce surplus inventories within the nation.
APAC
During the first quarter of 2024, the Threonine market in the APAC region, primarily China encountered challenges characterized by price fluctuations and an overall negative pricing trend. Subdued demand from downstream industries such as livestock, personal care, and food exerted significant downward pressure on prices, affecting both feed and food grades. Although there was a gradual rise in food grade prices in mid-Q1, overall consumption witnessed a pessimistic trade momentum throughout the quarter. Additionally, a downward trend in Threonine prices, influenced by declining corn prices, posed a profitability threat, particularly for producers with higher production costs. As a result, Businesses responded by strategically reducing inventory by offering discounts, resulting in a notable decrease in Threonine procurement volumes. Further, moving in February 2024, despite increased competition among producers due to market surplus, food-grade Threonine witnessed a slight consumption uptick which was somewhere balanced by available stockpiles in the region. Following the Lunar New Year holidays in mid-February, traders and suppliers witnessing a benefit from this focused on selling goods at higher prices. Persistent high freight costs stemming from geopolitical issues, continued to disrupt export momentum from China, resulting in delayed shipments additionally supported this rising trajectory as traders within the importing nations were accepting the goods at a higher cost. Yet again moving towards the end of the first quarter, prices dropped again to their lowest levels since January 2024. Owing to the anticipation of manufacturers and suppliers, concerning the higher demand, they ramped up future production, leading to an excess of stocks from the previous month. To address the oversupply and meet end-of-quarter destocking goals, suppliers offered discounts to encourage bulk purchases, aiming to boost demand and prepare for future replenishment. While, the normalization of previously inflated freight charges, resulting in an increased trade activity due to geopolitical issues further contributed to the price drop as March concludes.
Europe
Throughout the first quarter, Threonine prices in Germany, a major importing nation, followed a weakening market trend similar to other nations in the APAC region. In January 2024, a subdued market atmosphere with low buying activity and cautious participants kept L-Threonine suppliers to consistently lower their prices, leading to an overall decline in market sentiments. The decrease in feedstock corn prices further contributed to the declining trend for L-Threonine in Germany. While moving towards the middle of the quarter, feed-grade prices remained muted while inquiries from the food industries saw a modest rebound. Many end-users adopted a hand-to-mouth purchasing strategy, resulting in a slight decline in procurement activities, especially in the food sector. Despite modest single transactions on the demand side, some end-users were cautious about placing orders due to high pricing levels. Additionally, the ongoing trade dispute in the Red Sea region continued to impact demand and supply activities, leading traders to exhibit reluctance in issuing new quotations and fostering a circumspect market environment considering the feed grade. Lastly, towards the end of the first quarter, prices for both grades dropped considerably, indicating a stable supply-demand outlook with suppliers meeting overall demand within the region. Even with a decrease in freight costs facilitating an easy flow of commodities, including Threonine, new orders within the region remained relatively low, while retailers actively sold their stockpiled inventories at a moderate pace. However, some end-user dealers adopted a wait-and-see approach, keeping inventory levels elevated to adapt to changing demand dynamics, particularly notable in the German market, where participants anticipate a potential resurgence in consumption and local orders in the future.
