Source: Zerno On-Line (Russia)
China amino acid prices are rising as energy and corn costs prompt producers to raise prices and limit sales. Moreover, this trend is causing consumers to replenish inventories.
The feed amino acid market in China is experiencing widespread price increases. Furthermore, heightened geopolitical tensions in the Middle East have led to higher prices for oil, natural gas, and corn. Consequently, increased production costs are prompting amino acid producers to revise their price offers upward.
Producers are taking a tough pricing stance and limiting sales, hoping to maintain high prices. Meanwhile, the most significant price increases are being recorded in the methionine segment.
Lysine
Rising corn prices, driven by geopolitical instability in the Middle East, have increased production costs for L-lysine producers. Additionally, against this backdrop, companies are exercising restraint in sales and continuing to raise both domestic and export prices. Therefore, this is fueling market activity.
According to market sources:
- On March 9, Jinyufeng Biotechnology announced a price of 5,000 yuan per ton for L-lysine sulfate (70%) and 7,000 yuan per ton for L-lysine HCL (98.5%).
- On the same day, Starlake Eppen Biotech reported a significant increase in corn and raw material prices amid geopolitical tensions and announced price increases across its entire range of amino acids. Specifically, the increases ranged from 200-1,000 yuan per ton for essential amino acids and 200-2,000 yuan per ton for less-common products. Priority will be given to key customers.
Lysine prices are expected to continue to rise moderately in the short term.
Methionine
Most manufacturers have temporarily suspended the publication of quotations and the acceptance of new orders. Consequently, this has resulted in limited supply in the spot market.
Methionine prices have risen significantly, and end users are actively soliciting quotes and making deals.
Key market developments include:
- On March 5, Evonik announced a 10% global price increase for MetAMINO (99% feed-grade DL-methionine).
- On March 6, Evonik Operations GmbH announced a partial shutdown of methionine production at its Singapore plant due to disruptions in raw material supplies caused by maritime logistics amid military conflicts in the Middle East.
- On March 8, Sumitomo Chemical declared force majeure for methyl methacrylate (MMA) supplies.
The methionine market is expected to maintain its upward price trend in the near future.
Threonine, Valine and Tryptophan
Manufacturers continue to raise prices amid limited supply and a reluctance to actively sell their products. Furthermore, this is stimulating increased inquiries and consumer purchasing as needed. Meanwhile, threonine exports are also showing improvement.
Strengthening factory prices for valine have boosted purchases by consumer companies. Specifically, they primarily purchase the product for current production needs.
The tryptophan market remains relatively balanced between supply and demand, with a stable price trend. However, CJ Group has temporarily suspended the publication of price quotes.