There are several factors that are currently having the greatest impact on the market for Additives and commodities in general. First, the vacation season has begun. Buyers, who themselves will go to rest a little later, are making their last major purchases to secure companies and factories while they are away.
Tourists are arriving in their favorite destinations, where consumption of traditional local foods is on the rise. And, of course, so does general consumption. At the same time, demand for certain ingredients used in animal feed has declined slightly. That’s not particularly surprising; after all, neither pigs nor chickens take vacations. Or do they?
It’s getting warmer and the weather is getting nicer in many places (here it is not, so if it is where you are, we envy you, of course), which means that even those who stay at home are switching to more 'summer’ consumption, so demand for ingredients for sodas, ice cream and other such delicacies is up.
Summer is also, as you know, the time when all the pre-planned shutdowns and production stops take place. After all, factories deserve a well-earned break (or maintenance) too, right? In any case, such interruptions in production continuity, even if foreseen, inevitably affect the availability and price of certain goods, so it is especially important now to closely monitor the current situation.
Citric Acid
Supplies of this commodity from China to Europe are flowing. The situation remains stable, and prices have even fallen somewhat in Europe. However, it is predicted that they may soon rise as the cost of supplying all raw materials from China increases.
Xanthan Gum
Xanthan Gum is available on the market in sufficient quantities. The price of the product has decreased somewhat recently. There are regular contracts for the purchase of Xanthan Gum. The season for intensive use of Xanthan Gum is in full swing, so there will probably be more such contracts in the near future.
Methionine
Methionine, like other amino acids, remains wanted on the market and is in demand. Prices for Methionine have risen again among manufacturers and other suppliers, and all indications are that the upward trend will continue in the coming weeks.
L-Threonine
Threonine is among the most sought-after products on the market of Additives that are, of course, Amino Acids. It is the most expensive among the substances of this type now. Due to the current limited production, there are shortages and the price keeps rising.
Lysine HCl
As we have written in previous issues of the newsletter, prices for Lysine HCl have been rising steadily for several weeks. While buyers might take this as a sign to hold off on purchases and wait for prices to fall, this may not be the optimal strategy. One major producer has announced the temporary closure of two of its factories in June and July, respectively, so this may indeed be the last chance to buy before the next significant and rapid increase.
