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.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 witnessed significant fluctuations in the pricing of Threonine in the North American region following a varied downstream consumption while ending the Q4 on a pessimistic note. Throughout October 2023, the prices for both grades owing to reduced downstream consumption coincided with an excessive supply among the market participants.
Additionally, with the e ongoing economic turmoil in the US and the acceleration of global inflation distributors and suppliers do not concentrate on further restocking because the inventories are surplus and need to be consumed first. Moving forward in November, the market experienced sudden increased demand from both domestic and international markets, leading to higher prices. The supply side also remained robust, with factories showing a willingness to increase prices. Also, the congestion at certain US ports particularly led to significant delays in the delivery of goods. This, in turn, increased shipping costs for businesses, which were ultimately passed on to consumers in the form of higher prices. Additionally, the congestion led to a shortage of shipping containers, further exacerbating the problem.
However, as of December 2023 concludes, the prices fell considerably yet again. Several market indicators shed light on the subdued condition of the L-Threonine trade in the USA, as import quotations experienced a temporary halt due to a limited influx of orders from domestic suppliers. Adding to this, domestic suppliers and retailers actively engaged in destocking practices, systematically clearing existing inventories to avoid the accumulation of excess materials as the new year, 2024, began. Shifting the focus to the upstream segment of the market, it is noteworthy that the cost of feed Corn, utilized in the livestock industry, underwent a significant price surge during this period. This increase in costs led to a narrowed spread chart, signalling an adjustment in the pricing dynamics within this particular segment of the market.
APAC
The APAC region Threonine market in Q4 2023 witnessed several significant factors supporting the mixed price trajectory for L-threonine. Firstly, as October commenced, both feed and food grades of Threonine in the Chinese market have seen significant price reductions, aligning with the trend observed in other amino acids, particularly Lysine Hydrochloride. This decline in prices can be attributed to heightened production activities in the preceding months, leading to a substantial accumulation of inventories among domestic suppliers and traders.
In response, merchants have been readjusting their market prices for specific amino acids, bringing them back to normal levels from previously inflated rates. While, as we move towards November, the demand for Threonine augmented considerably in the feed and food industries. This was driven by rising orders from overseas and regional markets, as well as the optimistic market sentiment in the livestock sector. In contrast, the supply of Threonine was sufficient to meet the inquiries, with manufacturers maintaining adequate stock levels. Supporting this, the appreciation of the Chinese yuan against the dollar further impacted the market dynamics, raising expenses for importing buyers and traders.
As we approached December 2023, Threonine prices once again experienced a decline, signalling a pessimistic outlook in demand. Additionally, the significant decrease in the prices of essential raw materials, particularly corn, has intensified the discouragement for manufacturers to actively participate in restocking practices. Moreover, against the backdrop of heightened production activity in the previous month, there has been a consequential rise in available stocks among merchants. This surplus, coupled with weakened purchasing sentiments, has strategically compelled merchants to focus on destocking their inventories at reduced prices. While the industry is currently navigating a scenario where prioritizing cost-saving initiatives takes precedence over expansionary efforts, given the prevailing market conditions.
Europe
Across the German market, the prices of L-Threonine during the entire fourth quarter of 2024 witnessed an upside-down trajectory. As October unfolded, the pricing dynamics for both grades of Threonine mirrored the trends observed in other importing regions, such as North America.
The European market experienced a decline in Threonine prices, primarily influenced by a reduction in downstream consumption within the end-user industry and weakened consumer confidence. Notably, the animal feed industry emerged as the largest consumer of Threonine in Europe. With diminished consumer purchasing activity, the overall supply levels for both grades in the German spot market were found to be sufficient to fulfil the compiled orders for October. Marking to this further, trade activity within European nations remained subdued, primarily driven by inquiries that had already been received.
Moving into November, a significant uptick in demand for specific amino acids, including Threonine, was observed, particularly from both the feed and food sectors. This surge in demand was further accentuated by a considerable number of recent factory shipments experiencing delays until mid-November 2023, attributed to the Panama Canal drought. This event disrupted the smooth flow of consignments, leading to rerouting activities and causing an imbalance in the supply-demand outlook, resulting in an higher transportation costs. Furthermore, the anticipation of the holiday season prompted stockpiling activities, with food manufacturers and distributors intensifying their acquisitions of food-grade Threonine to ensure ample inventory levels.
However, concluding Q4 in December 2023, prices for L-Threonine experienced another decline, marking the end of the fourth quarter on a pessimistic note. Recent insights from market experts suggest that this price drop was a strategic move by suppliers to clear their inventories before the year's end. Merchants had previously stocked up substantial inventories in anticipation of potential future price surges. Additionally, within the regional market, domestic consumers and buyers were observed making purchases based on immediate minimum requirements, indicating a conservative stance in response to the prevailing market conditions.
For the Quarter Ending September 2023
North America
Considering the market dynamics in the third quarter, L-Threonine prices exhibited a significant decline in the food sector while witnessing a positive trend in the feed industry. In the initial months of the third quarter, the prices of L-Threonine for feed grade decreased, but they appreciated steadily in September, settling at $ 2000/MT for feed grade. The market remained throughout this quarter as arriving inquiries within the region were successfully facilitated by merchants with sufficient stockpiles, thus stabilizing the market's purchasing activity. While on the other side, the prices dropped notably in July for food grade, mainly due to a consistent decrease in consumption within the food industry. This decline was further exacerbated by economic uncertainties in the US and the global inflation rate, reducing the purchasing power downstream and leading to decreased L-Threonine prices. According to the data, the US trading activity shrank in July as businesses cut staff and output in response to a slowdown in new orders. Given that China is the country of origin for the great majority of pharmaceutical, nutraceuticals, and amino acids products imported into the United States, American companies are making great efforts to reduce their reliance on Chinese suppliers. Nevertheless, China's exports to the US fell by over 25% in the first half of 2023. Even though China's economy has given us additional reasons to be concerned about global growth, the dollar has recently declined. While moving into August, there was a stable rebound in prices compared to the previous month. Although the new demand for L-threonine was not exceptionally strong, the slight increase in demand allowed merchants to raise prices and clear their existing inventories. Improved consumption in the food, pharmaceuticals, nutraceutical, and other industrial sectors supported the rising trend until September 2023 with a $ 2280/MT price settlement.
Asia Pacific
The cost of feed grade L-Threonine experienced a sharp decline at the beginning of Q3 and showed a modest increase in August and September 2023. This drop was primarily due to a decrease in consumption, leading to excess stockpiles among merchants. Additionally, China's Consumer Price Index (CPI) fell by 0.20% in June 2023, impacting exports, especially in amino acids, with reduced overseas inquiries. This resulted in sluggish trade and higher stockpiles at ports. However, prices saw a slight improvement by August, continuing the upward trend until the end of September. This increase was driven by a rise in demand from end-users, balancing the overall supply-demand equation. On the other side, In the food sector, L-Threonine prices experienced a significant drop throughout July while improving in succeeding months. Several factors contributed to this, including reduced demand due to changing consumer preferences and economic downturns. Persistent declines in overseas inquiries kept production costs low, prompting suppliers to lower prices to stay competitive. However, In August 2023, prices rebounded slightly, which was balanced by market retailers and suppliers. Exchange rate fluctuations, particularly the weakening of the Yuan against the US dollar, led to higher costs for exported materials, contributing to the increase in L-Threonine prices. Consequently, by September 2023, the L-Threonine feed and food grade prices were set at $1550/MT and $2060/MT, respectively.
Europe
Across the European market, primarily the German market, followed the market trajectory of the United States and witnessed an ascending price trend throughout the third quarter of 2023. Prices in both the food and feed grade sectors experienced a sharp decline in July, but they improved as the third quarter progressed. One of the contributing factors to this decline was the weakened purchasing activity within the domestic market, leading to fewer inquiries from both suppliers and retailers. With the onset of the monsoon season, buyers were cautious about placing large orders due to the increased risk of product damage, which halted restocking efforts. Moving into August, prices began to stabilize, and suppliers showed eagerness to offer their products at higher prices to compensate for their previous losses in profits. However, buyers remained cautious, waiting to see if prices would further decrease. Additionally, the rising cost of fuel and surging energy expenses increased manufacturing costs in exporting nations. This, in turn, supported higher prices for imported goods in Germany. Furthermore, the Consumer Price Index (CPI) showed an optimistic trend in Germany, increasing to 117.80 points in September from 117.50 points in August 2023. Despite a consistent rise in new orders, albeit lower than what market participants had anticipated in both sectors, L-Threonine prices were set at $2230/MT for food grade and $1900/MT for feed grade.
For the Quarter Ending June 2023
North America
All through the second quarter of 2023, the prices of Threonine for both grades followed the market trend of the APAC region. Overall, the prices for Feed grade improved during the second quarter. This price trend was reinforced by higher downstream demand and overseas inquiries. Additionally, Retailers across the domestic market initially had sufficient inventory to meet the overall surge in demand during April. Apart from that, the US Consumer Price Index (CPI) increased by 0.1 from May to June, according to Statistics, further supporting the positive market trend for Threonine across the United States at the end of the second quarter. On the contrary, the prices of Threonine for food grade demonstrate an overall decremented trend during the second quarter, but with a nominal increase in its prices during May. In May, the demand from the domestic market from the downstream food industry improved somewhat, which was in line with the overall availability of supply among the suppliers. However, moving towards the termination of the second quarter, the prices of Threonine dropped considerably, which was mainly due to weak domestic demand. Furthermore, due to seasonal changes in the availability of Threonine in powdered form, the market participants concentrated on destocking their large stocks, which kept the market on the feeble side.
Asia Pacific
The prices of Threonine for both feed and food grade represented an opposite market trend across the Asia Pacific region in the second quarter of 2023. Feed-grade prices followed a continuous upward market trend, while the food grade threonine prices declined with a slight increase in May. Feed-grade threonine throughout the second quarter demonstrated a positive market trend further supported by higher downstream demand and overseas inquiries coupled with insufficient stockpiles among the merchants. 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 until the final weeks of June. Unlike feed grade, the market for Food grade threonine decreased in April due to low end-user demand and inquiries from overseas markets. However, in May, prices improved to a certain extent, and overall demand remained stable with sufficient supply among the retailers and suppliers. As June ends, in China, Threonine prices for food grade dropped considerably during June and are projected to remain weak in the upcoming months. This is 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 Threonine, in the domestic and foreign markets. As a result, merchants focused on destocking their excess inventories of food grade.
Europe
Throughout Q2 2023, Threonine values mimicked the market trajectory of Asia Pacific throughout the European market. Feed grade prices remained Northside throughout Q2. The increase in prices was mainly due to improved downstream demand but balanced with overall stockpiles among the merchants throughout April. As the month progressed into May, feed-grade prices continued to depict a positive market outlook which compelled the merchants to raise their inventories to meet the surging demand. Additionally, the Consumer Price Index in Germany, according to data released by the Federal Statistical Office (Destatis), increased by 6.1% in May 2023 compared to a year earlier, which further supported the upsurged market trend for Threonine in the European market throughout the month of May. Compared to feed grade, food grade prices of Threonine showed a weaker market trend throughout the 2nd quarter, with a slight improvement in May. At the start of the 2nd quarter, Threonine prices for food decreased for food grade due to increasing domestic supplies, decreasing consumer confidence, and declining end-user industry consumption. In May, prices improved slightly due to a slight rise in domestic inquiries, which was in line with overall supplies reported among domestic merchants. Once again, towards the end of the 2nd quarter of 2023, food-grade prices decreased significantly due to weak demand and higher stock levels.
For the Quarter Ending March 2023
North America
The market of Threonine ended the first quarter of 2023 on a bearish note. In Early January, prices displayed an incremented trend which was reinforced by an increase in its downstream demand from the end-user sector. Additionally, Positive market sentiments were influenced by limited supply among the suppliers and traders. Also, after a protracted comprehensive labor shortage, companies in the United States increased employment in January. Wages increased, and an increase in the flow of trade, along with the elimination of the zero-covid barrier, further facilitated commerce across the globe which positively supported the market trend of Threonine until the end of February 2023. Moreover, towards the termination of Q1, the markets in the U.S. bettered to some extent; however, the demand from various sectors declined, owing to which domestic retailers focused on destocking their piled-up stocks. Overall, the prices for Threonine were assembled at USD 1670/MT for Feed grade and USD 2820/MT for food grade in the United States.
Asia Pacific
In the APAC region, Threonine prices witness a decrement throughout the first quarter of 2023. During the first half of the first quarter, i.e., in January 2023, the prices of Threonine in the Chinese market witnessed upsurged pricing sentiments on account of healthy downstream demand from the domestic market. Additionally, limited supply among suppliers and merchants and new product initiatives to meet anticipated demand supported the market sentiments of Threonine in China in January. However, the increase in container logistics indicates that the downward trend has finally come to a halt, which is promising for many players who export to foreign markets as the production started to rise considerably until the end of February. Towards the termination of Q1, the prices of L-Threonine for both the feed and food grade in the Chinese market decreased on account of weaker offtakes from the local market and inquiries from the international market because of which the businesses did not fully resume production, and there was a large stockpile of various downstream product including L-Threonine. With this, the prices of Threonine in China were recorded at USD 2540/MT for Feed Grade and USD 1230/MT for Food Grade in China.
Europe
In Europe, the price for Threonine tumbled as the first quarter of 2023 concludes. A decline in demand from the end-user industry, weaker consumer confidence, and higher supplies were some of the factors that kept the prices of Threonine in the southward direction. During January 2023, the cost of Threonine illustrated an inclined price trajectory after witnessing a month-over-month decremented trend. Altogether, ease in inflation, logistic charges, energy cost, and a rise in customer demand within the domestic market supported this market trend of Threonine in Germany. As February drew near, Germany's falling freight and rising energy prices supported the imports of various amino acids, including Threonine from Asia. Also, because shipping volumes have declined and market participants in Europe are coping with an excess of supply, consistently improved consumer demand has boosted the German market for all the commodities. Moreover, as March drew near, the prices of Threonine for both grades went down drastically on account of a considerable drop in its downstream inquiries, which resulted in higher supplies among the domestic merchants. With this, the prices for Threonine were settled at USD 1550/MT for Feed grade and USD 2750/MT for Food grade in Germany.
For the Quarter Ending December 2022
North America
North American region, primarily the United States market, displayed decremented pricing sentiments for Threonine during the final Quarter of 2022. At the start of the fourth quarter, the prices declined considerably as the demand remained dormant for food and feed grades. Market players keep a close eye on various factors that have impacted the market of almost all commodities, including Threonine. Further, no significant changes in the trend were observed throughout the end of the fourth quarter as fewer inquiries kept the inventories on the upper end among the market players for Threonine. Following December, Threonine's cost was estimated at USD 3270/ MT CFR New York.
Asia Pacific
The prices of Threonine in the Asia Pacific region, majorly in China, demonstrated a mixed market sentiment during the last Quarter of 2022. Government data showed the official manufacturing Purchasing Managers Index (PMI) fell to 48.0 in November, slipping well below last month's reading of 49.2 as steadily rising COVID-19 cases in the fourth quarter, which in turn further affected the market sentiments of all the commodities, including Threonine. Although, in October, the prices for Threonine inclined significantly on the back of an increase in its inquiries within the domestic market. With the ending of the fourth quarter, i.e., in December, the prices of Threonine inclined again with a settlement at USD 2875 /MT FOB Shanghai.
Europe
During the fourth quarter of 2022, the prices of Threonine showed ascending market sentiments in the European region. With the start of October, a continuous decremented trend for Threonine was observed within the region because of the decrease in end-user demand. Following November, the prices remained lower due to a decline in international orders, notably from exporting nations like China, and demand decreased from the previous month. However, towards the end of this fourth quarter, the prices increased, balanced with the overall stocks among the market players. With this, the cost of Threonine witnessed during q4 was recorded at USD 3150 CFR Hamburg in Germany.
For the Quarter Ending September 2022
North America
The market trend for Threonine fell in the third quarter of 2022, with CFR New York prices for food grade falling from $3650/mt to $3072/mt and feed grade descending from $1530/mt to $1290/mt from July to September. Threonine was one of many amino acids whose imports into the US were severely constrained as a result of China's zero-tolerance policy. Numerous Chinese manufacturing facilities were forced to close in the second half of Q3 because of the heat wave and a power constraint, which had a negative effect on US commerce. Many companies and experts blamed the United States diminishing demand on a variety of problems, including inflation, supply shortages, and the nation's high-interest rates.
Asia Pacific
The market trend for Threonine across the Asia Pacific region exhibited a negative tendency in China, where FOB Shanghai values for Food grade fell from $2400/mt to $2020/mt, and feed grade values fell from $1530/mt to $1290/mt from July to September. Numerous factors, such as shifting raw material costs, subdued consumer spending, and weak end-user sector demand, had an impact on pricing. Big suppliers put off placing sizable orders in the first half due to poor offtakes and weak downstream demand. When the markets reopened in the final week of July, a number of production plants, including Vega Pharma, Prumix, and others, were undergoing maintenance as a result of the outage. This affected the product flow for domestic and international suppliers during H2 of quarter 3. Extreme weather and economic factors have also negatively impacted the market dynamics in China this quarter of 2022.
Europe
The CFR Hamburg negotiations for both food and feed grades in the domestic German market showed a downward trend after the values declined from $3100/mt and $2330/mt to $2600/mt to $1864/mt in September, continuing a downward trend throughout the quarter. The already difficult economic climate in Europe was made much more difficult by the unrest in Russia and Ukraine and the on-and-off port restrictions in China. Furthermore, the food and feed industries had a sluggish demand along with low to stable offtakes.
