Amino Acid Prices Likely to Show Bullish Trend in Q2 2023 Due to Rising Demand

Throughout the first quarter of 2023, the cost of Amino Acid demonstrates a weaker trend across the global market. This declining trend for Amino Acid was attributed to several factors, including feeble demand, ample supply, decreased consumer confidence, and improved trade momentum. Moreover, the market is expected to improve in the second quarter of 2023 due to a surge in demand across the international market.

In China, inquiries from domestic and overseas markets remained low until March 2023 due to lower feed consumption, resulting in a pause in sales across the market. Moreover, the manufacturers further focused on either halting their production activities due to low demand or focusing on cutting back the outputs to maintain their profits and prevent loss aversion. However, at the beginning of the Q2 of 2023, the market trend for Amino Acids improved moderately. According to a recent analysis, market participants intend to offer specific Amino Acids, such as Threonine, Valine, Methionine, and Lysine Hydrochloride, for a higher price than anticipated in the upcoming month to make up for their losses. In addition, in response to inquiries from both local and overseas markets, manufacturers are likely to take a wait-and-see approach to their manufacturing operations. Amino Acids prices have declined consistently since last month and this month because the end products are being sold near their cost of manufacture to clear the current stock.

Similar market trends were observed in Germany and the United States during the first quarter of 2023. Since participants had enough stockpiles up until the month of March, traders pulled back their fresh quotations from exporting countries, primarily China, which kept the market trajectory for Amino acids moving downward. In addition, the costs for several Amino Acids began to rise at the beginning of Q2 in 2023. A minor increase in demand, an easing trade activity, and decreased freight costs are anticipated to support this trend. Additionally, the rise in world oil prices has had an impact on trade in general in the global market.

As per the ChemAnalyst analysis, “it is projected that the cost of Amino Acid during the second quarter of 2023 is likely to surge as the demand from various regions might improve. Also, the market participants might focus on clearing out their stockpiles at a higher rate than expected to prevent their loss aversion.