Additives’ market is constantly changing and there is a lot going on. Geopolitical situation connected with the war on Ukraine is bringing plenty of new circumstances to the table. Western companies are still looking for best solutions after leaving Russia or being put into the position in which their partners do not want to cooperate with Russia. At the same time, Russian companies are taking over their own internal market by fulfilling niches left by the foreign capital.
Simultaneously, the Americas’ additives market is slowly but steadily developing. The growth is less than anticipated a year ago, but at the same time is discernible without any doubt. It was perfectly predictable that rising production costs would affect the growth rate. Despite hard conditions, the companies registered in the Americas are merging with great players from other parts of the world and developing new solutions that help them expand in the future.
Asian companies are no less innovative. Some of them are creating solutions and products that are hard to even imagine for many, nevertheless they are effective both in terms of results and in the case of lowering prices of animal feed. Fish producers are cooperating internationally to improve their skills and knowledge, as well as to keep the development of the aquaculture sector in the country sustainable. A lot is going on in China. In the later part of the newsletter you will find a story about a very unfortunate package as well as some details about the nation’s soy imports.
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The Chinese Methionine market is stable with a little growth in the last few weeks. The European market is stable and weak. Currently the biggest European sales of the commodity are taking place in the central part of the continent.
Threonine / Lysine HCL
The market for Threonine and Lysine HCL is weak and stable as well. In China, attention to Threonine is gradually declining while the Lysine market is gaining attention. Both supply and demand of Lysine have increased. European producers of the animal feed, unsure of the energy future, are not currently stockpiling and are sourcing raw material rather for current production.
Urea prices last week reached very high levels, exceeding 2 EUR/KG in Western Europe. There are currently no signs of stabilization of the situation of this raw material and extinction of this trend.
There has been a slight increase in vitamin transactions this week, in terms of the American additives market. Same applies to the European one, as summer vacation time was stable and almost completely quiet regarding buying activity. The European market is not fully active yet, but it seems like this is a good time to buy, as market participants are slowly starting to buy goods for Q4. The price range varies between suppliers. A major European producer of vitamins A and E has reduced the amount of material offered on the spot market because of concerns about its gas supply.
Salt continues to be in short supply on the market. Prices are rising at a rapid pace, especially for technical grade, used for road gritting, as well as in the production of detergents or washing powders. This is a good time to buy, as we cannot predict how trends will develop over the course of this month.
The price of Xanthan Gum is relatively stable, but there are still apparent problems with the availability of this product on the market. We are receiving calls from manufacturers of jams, jellies and mustards, saying that they are keenly interested in buying this product.