In Europe, import taxes are anticipated to return in Q4, and transportation costs are a significant factor affecting the final price of lysine, as reported by AllAboutFeed.

Stable Prices

FOB China prices for lysine and threonine are stable to slightly weak. Threonine, in particular, has more potential for further price declines.

Container shipping rates to Europe and America remain firm and may increase further, at least through the summer, leading to firmer price offers for several amino acids for the rest of Q3 and Q4. Find more details in this week's feed additives snapshot (week 23).

Methionine has recently weakened slightly but is stabilizing now due to the impact of container transportation.

Tryptophan and valine are weak, but any price decreases are currently offset by higher transportation rates, leading to stable price floors. Arginine is also relatively stable.

Lysine

FOB China prices are stable to slightly weaker compared to a few weeks ago. In regions like Europe and the USA, prices are rising. In Europe, import taxes are expected to return in Q4, and transportation costs are significantly impacting the final price of lysine.

Container transportation costs have increased significantly on the China-to-Europe and China-to-America routes. Base prices in these regions have the potential to rise further, as transportation cost increases outweigh recent FOB price declines from China.

This has led to increased interest in covering the end of Q3 and early Q4. New contracts are offered outside China only for July/August shipping. Q2 is contracted, and a good part of Q3 is also covered.

Threonine

FOB China prices have been under pressure in recent weeks but have stabilized for now. Further price declines are considered. Demand has decreased slightly in several regions, while new capacities have come online.

However, as container shipping rates to several major ports have increased significantly, local threonine prices have risen for Q3 and early Q4. Buyers have contracted for Q2 and a good part of Q3. There is a wait-and-see attitude for long-term contracts despite high container shipping prices.

DL-Methionine

Methionine prices have been slightly weaker in most regions but have stabilized again due to higher container transportation rates offsetting previous declines. After a recent period of stable to firmer markets, the momentum to keep prices high has disappeared, at least for now.

There are still messages about production not being fully up to speed and future maintenance periods and production optimization projects expected, but this does not seem to influence the market. In almost all regions, the market is quiet and contracted. Q2 is contracted, and many buyers have also contracted part of their Q3 needs.

Tryptophan

After a period of relatively stable prices in most regions, except China, where the market was already weaker, prices are now softening in other regions as well. Although the weaker tone is currently offset by higher container transportation rates, which offset the decline.

There is more production capacity allocated to smaller amino acids, and more tryptophan is slowly entering the market this year and in the coming years, exceeding consumption.

In local regions, such as Europe, where Chinese suppliers do not have active authorizations or cannot supply from Xinjiang, local Western suppliers have managed to maintain higher prices. Most of Q2 has been contracted so far, but buyers hesitate to look at Q3.

Valine

FOB China valine prices continue to be weak, with little buying interest. However, container transportation costs are now impacting higher-priced amino acids, so the final price in local regions is stable at this moment.

Prices in the USA are mostly stable to slightly weak. The market is very quiet, with little spot buying activity. Q2 is contracted, and part of Q3 is also contracted for strategic/continuity reasons. (Photo: Freepik)