For the Quarter Ending December 2024
North America
In Q4 2024, the North American Valine market, particularly in the U.S., experienced a mixed trajectory influenced by supply-demand imbalances and global market dynamics. Feed-grade Valine saw consistent price declines throughout the quarter due to oversupply and reduced procurement activity, as key buyers leveraged existing inventories.
Food-grade Valine initially faced downward pressure, with major end-users delaying purchases. However, November brought an upward price trend for food-grade Valine, driven by strong demand from the health supplement and fortified product sectors, alongside rising production costs linked to higher corn prices and supply limitations from exporting regions.
By December, food-grade Valine prices fell sharply as stable quotes from Chinese suppliers, coupled with efforts to clear inventories, reduced urgency among U.S. buyers. Softer feedstock prices and muted domestic consumption further reinforced the price decline across both Valine grades, exacerbated by limited spot buying and weaker international demand. Additionally, hesitancy from domestic clients to commit to new projects amid anticipated policy changes under the Trump administration contributed to a pessimistic outlook. Despite these challenges, manufacturers increased employment, though reduced capacity utilization and cautious purchasing signaled ongoing market headwinds. Overall, Q4 2024 marked a challenging period for the U.S. Valine market with minimal signs of recovery.
APAC
In Q4 2024, China's L-Valine market experienced a mixed trajectory, with feed-grade Valine continuing its downward trend, while food-grade Valine saw significant fluctuations. October witnessed a sharp decline in both feed and food -grade Valine prices, driven by lower feed ingredient prices (corn and soybean meal) and weak overseas quotations. This resulted in elevated inventories and subdued market activity, with suppliers adjusting prices to move stock, benefiting end-users with more affordable food. However, the decline in feed-grade Valine was offset by robust demand for food-grade Valine, which witnessed a significant upward price trajectory due to strong rebound from the pharmaceutical and nutraceutical sectors in November 2024. While at the same time, the Market conditions were further impacted by geopolitical factors, including potential U.S. tariff changes and China’s currency adjustments, which led to aggressive destocking and discounted pricing concerning the feed grade. Moreover, with a significant rise in downstream consumption both from the regional and overseas market, traders focused on clearing their inventories at a higher price thereby benefiting them in terms of sales and heightening profit margins. However, as Q4 concludes, the prices dropped considerably for food grade and buyers remain cautious, limiting purchases to immediate needs, which has intensified price competition among suppliers for the entire month, resulting in a significant price drop. While that of feed grade, the market continued to remain weak with traders mainly engaged in destocking practices. Overall, the market remained on the southerly side for feed grade while demonstrated a positive trajectory for food grade with respect to the fourth quarter of 2024.
Europe
In Q4 2024, Germany's L-Valine market exhibited a continued divergence between the feed-grade and food-grade segments. The feed-grade Valine market remained weak, with prices declining due to sustained low demand from the livestock and poultry sectors. Economic pressures and reduced consumption in neighbouring states further exacerbated the downturn, while global supply-chain disruptions added to the challenges. On the other hand, the food-grade Valine segment showed resilience, experiencing steady price increases driven by stable demand for food additives and ingredients, alongside strategic inventory management by suppliers in November. In December, both grades saw a consistent decline in prices, reflecting broader regional market weakness. This decline was primarily attributed to global oversupply, driven by excessive pre-holiday stockpiling, which led to a significant supply-demand imbalance. As a result, suppliers in both segments were forced to implement price corrections and promotional strategies to manage elevated inventories. Lastly, the logistics disruptions at major ports, such as Rotterdam and Hamburg, had minimal impact on market sentiment, while cautious purchasing behaviour and muted activity in the livestock sector contributed to the overall bearish market outlook for feed grade while a positive trajectory for food grade witnessing a balanced supply-demand side.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Valine market, particularly in the USA, experienced a significant upward pricing trend, driven by various supply-demand dynamics. Key factors influencing this surge included robust demand across major sectors, disruptions in the supply chain caused by ongoing trade disputes, increasing freight costs, and fluctuations in feedstock prices. Suppliers struggled to maintain adequate inventory levels due to a surge in bulk procurement orders, especially from prominent exporting regions. This intensified pressure on the already constrained supply chain, resulting in tighter availability and driving prices higher.
On the production side, while feedstock costs remained relatively low, reducing overall production costs, the depreciation of the U.S. dollar against the Chinese yuan and other currencies led to higher import prices. Despite these cost advantages, the ramp-up in production was slower than anticipated, limiting the influx of new inventory and maintaining a tight market. Additionally, the anticipation of potential tariffs on Chinese goods ahead of the U.S. presidential election caused importers to stockpile L-Valine in an effort to mitigate potential price increases, further straining supply chains.
Although shipments gradually resumed, the inventory inflow remained modest, and market volatility persisted. The convergence of bulk purchasing, inflationary pressures, and supply chain disruptions created a challenging market environment. By the end of Q3, L-Valine Feed Grade was priced at USD 2425 per metric ton (CFR New York), while L-Valine Food Grade reached USD 3630 per metric ton (CFR New York), reflecting a continued upward pricing trend amidst a volatile market backdrop.
APAC
In Q3 2024, the Valine market in the APAC region experienced a marked uptrend in prices across both feed and food grades, driven by several key factors. Global demand surged, particularly from sectors such as food, beverages, cosmetics, and pharmaceuticals, significantly influencing price increases. This demand spike was further amplified by seasonal preparations for winter, prompting manufacturers to adjust prices upward while meeting the needs of international buyers. Enhanced logistical operations and improvements in supply chain efficiency supported export activities, contributing indirectly to price escalations. Despite efforts by amino acid producers to stabilize the market by raising quotations, the supply-demand imbalance persisted, exerting upward pressure on prices. In China, where the most pronounced price movements were recorded, the combination of reduced production sentiment, lower manufacturing volumes, and increased unit costs contributed to substantial price hikes. The market, however, showed volatility in the food-grade segment, with prices declining at the start and end of the quarter. Nonetheless, overall market sentiment remained optimistic, as active trading of higher-priced goods continued throughout the period. By the end of Q3, the L-Valine Feed Grade FOB Shanghai price had settled at USD 2165/MT, while the L-Valine Food Grade FOB Shanghai price reached USD 3380/MT, reflecting a consistent upward pricing environment despite periodic fluctuations, driven by strong international demand and supply-side constraints.
Europe
Throughout Q3 2024, the European Valine market witnessed a significant uptrend in prices concerning both feed and food grade, with Germany experiencing the most pronounced changes. Several key factors influenced the market dynamics during this period. A continuous surge in demand from various industries, coupled with limited supply due to disruptions and plant shutdowns and maintenance within the key producing nations created a tight market environment. Rising production costs, supported by the limited availability of the feedstock corn, further pushed prices upwards. Supporting this further, the appreciation of the Euro against the dollar added to the cost pressure, impacting import prices. Seasonal trends also played a role, with the approaching holiday season driving bulk procurement activities and increasing international demand across the feed and food including nutraceuticals sectors additional continued to support this upward trend. Overall, The correlation between these factors led to a continuous increase in prices from the previous quarter with values settled at USD 2500/MT for L-Valine Feed Grade CFR Hamburg and USD 3530/MT for L-Valine Feed Grade CFR Hamburg respectively.
For the Quarter Ending June 2024
North America
The Valine market in North America faced a significant downturn even during the entire second quarter of 2024. A persistent drop in L-valine prices, echoing a parallel downturn seen in key producing nations such a Chinese province depicting a significant exporter to the USA.
A confluence of factors contributed to this downturn, notably the alleviation of geopolitical tensions from past months, which led to a significant reduction in freight charges, shifting consumer preferences towards other amino acids, and a reduction in overall feedstock prices. This reduction in transportation costs consequently impacted shipment expenses and the overall pricing of valine within the US market, making it easy for the availability of goods within the market. However, the presence of substantial existing inventories in the regional US market, steaming from the continuous drop in regional quotations particularly from the feed sector contributed to a subdued market sentiment. This surplus in inventory, coupled with diminished purchasing activities and weakened consumer confidence across end-user sectors, notably amid increased inflationary pressures, further dampened the demand for L-valine. Moreover, supply dynamics played a pivotal role in shaping the pricing landscape. The elongated supply length, coupled with higher prices for raw material Corn, compelled some producers to either reduce run rates or idle capacity, consequently preventing the additional cost of storage of the material while destocking them as soon as possible. While on the demand side, across the North American market, the overall market activity has been subdued, with fewer transactions taking place. This subdued activity was a result of the weak demand from downstream sectors. End users are reported to have existed stocks, leading to weaker demand for new purchases.
Participants remained largely inactive in placing fresh orders, adopting a cautious wait-and-see approach, and engaging in procurement activities solely to meet immediate requirements. This muted demand pattern raised concerns among domestic retailers and suppliers regarding potential destocking practices. Adding up to this, regarding the export market dynamics, there were consistent indications that enterprise-level imports of Valine could have experienced a further decline. Overall, this potential reduction in import volumes could be attributed to various factors, such as weakened regional market orders, demand volatility, trade regulatory implications, or competitive pricing pressures from other global suppliers. With this, the import prices concerning the both feed and food grade L-valine during the second quarter of 2024 ending in June were assembled at USD 2220/MT USP Feed grade CFR New York and 3500/MT USP Food grade CFR New York respectively.
APAC
Throughout the second quarter of 2024, the Valine market in the APAC region, particularly in China, faced numerous challenges, resulting in an overall downward pricing trend. Considering the feed grade, the prices remained on the lower side throughout the quarter while rose steadily in the end of the quarter and food grade remained o the lower side. On the supply side, the current dynamics of the valine market, both domestically and in the export market, reflect a state of oversupply and subdued demand, leading to pricing pressures. Manufacturers continued to weaken their profit margins to destock their inventories as traders holding high levels of inventory were willing to sell their end-products at reduced prices to liquidate their stock and generate cash flow. This was driven by concerns about the shelf life of the products and rising storage costs due to increased raw material prices. Further, some market experts noted that another reason for the price dip could be manufacturers bound by long-term contracts with suppliers or engaging in hedging strategies to mitigate the impact of raw material price fluctuations. This uncertainty has led to a cautious approach in purchasing decisions, with buyers hesitant to place large orders or commit to long-term contracts with Chinese suppliers, creating significant imbalances in supply-demand dynamics and leaving traders grappling with higher inventories. This trend continued even in the middle of the quarter. While moving forward towards the end of the quarter, feed-grade prices experienced a moderate uptick, while food-grade prices saw a significant decline. In the feed-grade sector, despite an overall downward trend in amino acid trading from China, demand for certain amino acids, including Valine, remained robust. This sustained demand supported an optimistic price trajectory for feed-grade Valine. Notably, production levels remained high despite price fluctuations and variable replenishment sentiment, indicating that manufacturers maintained full or near-full capacity operations, supported by the higher cost associated with the feed-grade corn. Additionally, demand from downstream traders in major importing countries further bolstered the market, as buyers actively replenished inventories. Supportingly, persistent logistical challenges and trade issues prompted feed buyers from importing nations to proactively secure Valine stocks, anticipating potential supply constraints or price increases. This pre-emptive purchasing behaviour sustained the upward trend in feed-grade Valine prices. With this, the exporting prices for feed grade and food grade amino acids were settled at USD 2000/MT USP feed grade FOB Shanghai and USD 3300/MT USP food grade FOB Shanghai.
Europe
The pricing environment for Valine in the European region during the entire second quarter of 2024 remained predominantly on the downward side with prices experiencing a steady rise yet very steady rate in the end for feed grade. Overall, the demand for Valine, both in feed-grade and food-grade variants, fell short of industry expectations. Despite the usual increase in demand before spring, sluggish economic activity and sufficient domestic stocks kept prices low. Moreover, the trading atmosphere of Valine was average, with factories lowering their quotations and selling the product at discounted rates given the diminished demand. Weakness in downstream inquiries from both feed and food industries was characterized by sporadic small-scale transactions tailored to their specific requirements only. Nonetheless, Stepping into May 2024, freight transportation costs have seen a significant increase, impacting businesses and consumers alike. This rise in shipping costs has been attributed to a variety of factors, including rising fuel prices, supply chain disruptions, and increased demand for transportation services. The spike in transportation costs has hit businesses relying on shipping hard. Many were reassessing pricing strategies, either absorbing the costs or passing them on to customers. This has led to higher prices for consumers, reducing purchases and keeping overall sentiments weak and consolidated. Enterprises, grappling with escalating costs associated with storage and the inherent risk of product deterioration, have commenced releasing their stockpiled Valine into the market. This strategic maneuverer has augmented the available supply for buyers, further exerting downward pressure on prices. Industry analysts have noted that the synergistic interplay of these elements has engendered a propitious environment for buyers, benefitting them in terms of more attractive pricing. While the diminished reluctance to engage in procurement activities, kept the overall market trade sentiments and prices to remain weak and consolidated during the month ending in May 2024. However, the market considering the feed grade witnessed a steady rise as of June 2024, followed by sufficient stockpiles among the traders supported by a steady price rise in key producing nations. On the market side, the spot inquiries were relatively high, and traders held significant stockpiles in both inland and coastal regions, thus balancing the overall supply-demand scenario. Buying interest from end-user industries surged, contrary to previous expectations, leading traders to liquidate them yet at a higher price. Although buyers accepted goods at higher rates as various traders were actively marketing their inventories at a higher cost, despite an appreciation of the euro against the dollar across the regional market. Additionally, considering the highest demand side, there has been an increase in sea freight costs following the past month. This increase was attributed to the higher costs of shipping and the current shortage of sea containers which kept the overall imported cost of Valine on the upper side. While, considering the feed grade, the prices continued to remain on the lower side with supply side balancing the overall demand side. Overall, the prices for feed and food grade were settled at USD 2120/MT Feed grade CFR Hamburg and USD 3420/MT USP Food grade CFR Hamburg.
For the Quarter Ending March 2024
North America
The Valine market in North America faced a significant downturn in Q1 2024, marked by widespread price declines. This decline was driven by multiple factors, including reduced demand from the livestock and food sectors due to persistent downturns. Additionally, lower prices for raw materials like corn discouraged manufacturers, further dampening market activity. The abundance of stocks in exporting nations also contributed to subdued purchasing sentiment, prompting merchants to destock inventories at discounted rates. Meanwhile, the USA, a key importer of Valine, took strategic pricing actions to enhance its global competitiveness, leading to widespread price reductions in the global Valine market.
Further, moving into the middle of the quarter, the reopening of the exporting nation following a 15-day holiday and full resumption of transportation services further supported an optimistic trajectory for traders within the nation to focus on their downstream procurements. However, inquiries arriving from the regional market continued to remain muted which created an excessive supply among the producing nations which outpaced the overall demand side. As a result, the strategic decision by Chinese suppliers to offer Valine at notably reduced rates enabled US market players to maintain competitiveness by adjusting their own pricing strategies accordingly. Furthermore, the adoption of just-in-time inventory systems and the provision of discounts to facilitate the clearance of excess inventory were additionally noted throughout the quarter, alongside the scaling back of production until demand picks up again.
Lastly, the strengthening of the US dollar against other currencies has benefitted importers and traders by boosting the purchasing power of US buyers in global markets. This currency dynamic has fostered a sense of stability, enhancing confidence among market participants. Additionally, the resumption of trade activities and shipments has improved the availability of commodities, such as Valine, easing concerns about supply shortages and exerting downward pressure on prices. However, despite these positive developments, challenges persist due to subdued demand, sluggish purchasing activities, and weakened consumer confidence. As a result, market players are resorting to aggressive pricing strategies to stimulate demand and reduce excess inventories until the final weeks of March 2024 and prepare for new fresh batches with new quarter.
APAC
Throughout the first quarter of 2024, the Valine market in the APAC region, particularly in China, faced numerous challenges, resulting in an overall negative pricing trend. Subdued demand from downstream industries such as livestock, personal care, and food exerted significant downward pressure on prices, impacting both feed and food grades. However, a slight rebound in food industries towards the end of the quarter was witnessed, which was balanced by sufficient inventories held by market participants in the region. Initially, the decline in Valine prices, influenced by decreasing corn prices, posed a profitability threat, especially for producers with higher production costs. Consequently, businesses strategically reduced inventory by offering discounts, leading to a notable decrease in Valine procurement volumes. Moving into February 2024, increased competition among producers due to market surplus, combined with the Lunar New Year holidays in mid-February, prompted traders and suppliers to focus on destocking inventories to avoid excessive stockpiling and additional storage costs. Simultaneously, ongoing geopolitical issues disrupted export momentum from China, resulting in delayed shipments and higher freight costs. This creates reluctancy among suppliers and buyers within importing nations to issue new quotations which further exacerbated the situation, as demand from the region remained muted, leading to a higher accumulation of excess stocks at ports and warehouses of exporting nations. However, towards the end of the quarter, in March, there was a steady rebound in overseas quotations, supported by the normalization of previously inflated freight charges. This easing in overall trade activity helped restore some balance to the market, with a slight optimistic trajectory observed for Valine food grade as the supply side began to align with overall demand. Overall, the pricing environment for Valine in the APAC region has been relatively on the weaker side, with some upward pressure on prices in China. Market conditions, including supply and demand dynamics, raw material costs, and seasonality, have influenced the pricing trends observed during Q1 2024.
Europe
The pricing environment for Valine in the European region during Q1 2024 was predominantly negative, with prices experiencing a consistent decline yet very steady rise in food sector as quarter marks its ending in March 2024. Several factors contributed to this downward trend. Firstly, the demand for Valine, both in feed-grade and food-grade variants, fell short of industry expectations. This subdued demand, coupled with an oversupply of Valine in the market, led to increased competition among suppliers and a subsequent decrease in prices. Additionally, the depreciation of the Euro against the US Dollar further impacted the pricing dynamics for imported Valine, making it more expensive for buyers. Sportingly, the ongoing trade dispute in the Red Sea region also had a significant impact on demand and supply activities, further dampening the market sentiment. Within Germany, the being an importer of Valine continued to display the market trajectory witnessed same as that of its exporting nations, primarily China. The market experienced a persistent decline in prices, driven by lower demand and an oversupply of inventory throughout the quarter. The reduction in prices for raw materials, particularly corn, further contributed to the downward pressure on Valine prices. However, a steady rebound in food sector was witnessed by merchants as inquiries from local market showcased a modest rebound. This further benefitted the downstream suppliers across the market as Euro depreciated considerably against the dollar which market the goods in terms of euro more expensive for the buyers. Merchants within the domestic market were focused on selling their inventories yet making maximum profits throughout the month.
