11th edition of Foodcom ADDITIVES Newsletter

Автор
Foodcom Experts
01.07.2022
7 min чтения
11th edition of Foodcom ADDITIVES Newsletter
Russia further reduced gas deliveries to Europe. In Germany the Nord Stream pipeline lowered its capacity to 40%. Many manufacturers fear that they will have to cease production if the gas supply falls significantly below the level in the long term. Specialists stress that there is no short-term solution to replace natural gas from Russia. Gas imports are not the only indicator that will influence the additives market in coming months. The war exposed how dependent some countries are on each other in the matter of raw materials. China is a huge chemical market and a major player in this field, and the economic dependence on Beijing has increased in many countries after Russia’s invasion, which China has not condemned. The question is what measures will countries take in the face of these dependencies. As always, we are observing the market situation with curiosity.

Continue reading to learn more.

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Monocalcium Phosphate


n Europe, the supply situation has changed somewhat since the beginning of the war, as some new large suppliers from non-EU countries have entered the European market. The Q3 commodity price for phosphoric acid has not yet been determined. Although, there are early signs of price stability in feed phosphate contracts for Q3.

Methionine/Threonine/Lysine HCL


The demand for all feed amino acids is similar. The market is currently weak but stable as we do not expect any major changes in the industry this coming summer. Of the three amino acids, we continue to see the highest sales for lysine, followed by methionine, but for threonine, we noticed quite limited demand. Yet, it can be distinguished that prices in China will no longer fall and the market should rise again.

Citric Acid


Prices are slightly down, the European market is rich in commodities, though we expect a typical slowdown during the vacation season. We forecast rates to recover at the end of the warmer months, and all producers to start full production. This is a good time to buy.

Xanthan Gum


Prices are stable, the lack of availability is caused by the fear of buyers to approve raw materials from China for the correctness of the ECA test. We continue to see interest in the market for all emulsifiers. And influenced by the lack of availability of xanthan gum, we are seeing a price increase in raw materials such as cognac and guar gum. This is because manufacturers are looking for ways to change their formulations.

SAPP


Concerning disodium acid pyrophosphate, regular delivery of this product is estimated. Analyzing the previous quarter, we notice slight decreases in prices.

Sodium Triphosphate


Similarly to other products, after a period of unavailability because of the failure of supplies from China, rates began to drop for this commodity. Shipments had waited several months to leave the country, and with the release of goods, boosted maritime trade has had a positive effect on the market.

Collagen


We observe a doubling of the price of collagen, as availability of the raw product on the market is limited compared to previous months.

Sodium Bicarbonate


There are noticeable problems with commodities in the market, therefore as a result, we are experiencing a significant increase in trade rates.

Vitamin C


We can say there is a similar, and reoccurring situation to all Chinese origin products. Demand is likely to increase after the vacation, before the flu season begins, when it is used for medications and supplements, as well as cosmetics.
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