Hello Partners!
Welcome back to our Additives newsletter! After a short break, we’re back with some exciting developments in the additives market.
Amino acids prices have been steadily increasing, causing excitement in various industries. The feed sector, in particular, is experiencing a surge in demand for amino acids, accompanied by reduced supply from major manufacturers. Prices for essential amino acids such as Lysine, Threonine and Methionine in particular have risen significantly in the past month, and this trend is expected to continue in the coming months.
Continue reading to learn about this week’s market insights!
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Lysine HCl
Over the past month, the average price of lysine HCL has increased significantly, by approximately 0.3 EUR/KG. This price increase indicates significant changes in the Lysine HCL market and may impact companies that rely on this essential amino acid in their operations.
Citric Acid
Over the past two weeks, the citric acid market has remained remarkably stable, with prices showing minimal fluctuations. This steady price trend reflects balanced supply and demand dynamics, providing companies with a reliable and predictable cost environment for their citric acid needs.
Xanthan Gum
In recent weeks, prices for xanthan gum have increased significantly in both China and Europe. As companies prepare for Christmas production, securing raw materials such as Xanthan Gum has become a priority to respond to increased demand, potentially impacting sourcing strategies.
L-Threonine
In the past month, L-Threonine prices have increased, mirroring the trend seen in Lysine HCL. Additionally, the market has witnessed a notable price increase in Methionine following a brief decline, reflecting changing dynamics in the amino acid market.
Monocalcium Phosphate
Customers should be aware of potential supply disruptions to MCP due to an earthquake in Morocco, which may impact the availability of raw materials and the product itself. In addition, there is a possibility that prices for MCP will increase significantly in the coming months due to these supply issues.
Creatine Monohydrate
With the return of the fitness season, there has been a noticeable revival in demand for Creatine Monohydrate in the market. This increased demand is contributing to an increase in the price of creatine as it becomes a sought-after supplement for fitness enthusiasts. With the gym era now in full swing, companies should be prepared for potential price increases in response to this renewed demand.
What Else?
Europe
Germany
Methionine Prices Rise Sharply in Germany Amidst Strong Downstream Demand. Methionine prices in the German market have surged due to limited supply and increased demand from various industries. Reduced imports from China and a depreciating Euro have exacerbated the supply shortage, driving prices higher. China’s economic slowdown and production issues have further impacted Methionine imports, while Germany faces challenges such as an energy crisis, high inflation, adverse weather conditions, and supply chain disruptions. Analysts predict that Methionine prices will continue to rise due to sustained demand and limited supply, with potential support from the European Central Bank’s monetary policy and improved trading activity.
Europe
European Glycol Ether Market Stabilizes Despite Production Drop and Upstream Cost Surge. In August 2023, the Glycol Ether market remained stable despite declining production rates and increased upstream costs driven by higher Ethylene prices. Reduced international orders and sluggish demand from downstream industries, influenced by factors like increased bank interest rates and a slowdown in the construction sector, contributed to bearish market sentiments and lower Glycol Ether prices. Additionally, the Eurozone’s contracting manufacturing sector and high energy costs dampened demand. However, lower upstream Ethylene prices and reduced input costs due to lower Natural Gas prices eased production costs. Glycol Ether prices in Germany decreased by nearly 2% in Q3 2023, hovering at around USD 1300/MT by the end of August. Looking ahead, Glycol Ether prices are expected to remain firm due to low production rates, economic slowdown, and high upstream Ethylene costs, while demand is likely to moderate.
The Americas
USA
Hydrochloric Acid Market Faces Uncertainty Amid Fluctuating Oilfield Activity. The US Hydrochloric Acid (HCl) market is experiencing uncertainty due to fluctuating demand linked to oilfield industry dynamics. While recent data suggests a potential stabilization in HCl demand due to a slower retreat of drilling rig operators, the market remains concerned about a year-long decline in drilling activity. ChemAnalyst anticipates a possible price rebound in the near future, driven by an expected increase in oil drilling activity.
USA
Sodium Benzoate Excipient Market Faces Downward Price Trend Amid Weak Downstream Inquiries. In the third quarter of 2023, Sodium Benzoate Excipient prices in North America, especially the United States, experienced a sharp decline due to factors such as rising energy costs, reduced sales in the Food and Beverage and cosmetics sectors, higher upstream Benzoic Acid Excipient prices, and supply chain disruptions. The decline was also influenced by weaker demand, as retailers reported steady but hesitant orders, leading to a surplus in Sodium Benzoate Excipient supply. The ongoing US-China trade conflict further added uncertainty to the market, disrupting supply chains and causing price reductions. Despite these challenges, market participants anticipate a future price increase due to growing domestic demand and sufficient inventory levels.
Asia & Oceania
Asia
Eastern Pacific Signs an Agreement for a Pair of World’s Largest Ammonia Carriers. Jiangnan Shipbuilding has designed the world’s largest ammonia carriers, VLACs, with a 93,000 cubic meter capacity based on their Panda 93 A-class VLGCs. These vessels are suited for long-distance transport of green ammonia and can also carry liquefied petroleum gases like propane and butane. They measure 230 meters in length, 36.6 meters in breadth, and 22.5 meters in depth, with classification from Lloyd’s Register of Shipping. Eastern Pacific Shipping (EPS) has expanded its fleet by ordering six VLACs of this size from Jiangnan Shipbuilding, marking the second batch of orders in 2023. EPS also placed orders for two dual-fuel bulk carriers from Qingdao Beihai and four very large gas carriers from Hyundai Heavy Industries, all featuring ammonia compatibility and delivery dates in 2026-2027.
China
Rising Sodium Chlorate Prices Globally Amid High Energy Costs and Increased Demand. Sodium Chlorate prices have globally risen due to high energy costs and increased demand, with prices going from USD 995/MT FOB in France in May 2023 to USD 1050/MT in August 2023. Europe saw significant price increases driven by high energy prices, supply chain disruptions, and heightened paper demand due to seasonality. In the Americas, prices in the US steadily rose for three months, fueled by strong demand from pulp and paper industries, while Brazil showed a similar trend. In contrast, the Chinese market witnessed a decline in Sodium Chlorate prices in August 2023, attributed to weak economic recovery, reduced packaging volumes, and oversupply in the paper sector. As inflation and energy costs are expected to decrease, Sodium Chlorate prices are likely to stabilize, especially in Europe.
