European Lysine Hydrochloride Price Shows Upward Trend in September Amidst Rising Inquiries

As September 2023 gets underway, the prices of some amino acids, such as Lysine Hydrochloride, continue to rise while imitating the market trend from the previous month. The current state of the global market is slightly improving, and exporting nations like China are gradually regaining production momentum. As a result, prices have momentarily stabilized while positively rising. The Chinese government's initiatives to support the economy and businesses, the relaxation of COVID-19 restrictions, the rising demand for goods as the economy reopens, and improvements in the manufacturing sectors are likely contributing factors.

Prices for food and feed-grade Lysine Hydrochloride moved northward due to an ongoing increase in downstream demand from domestic consumers and local market inquiries. Additionally, higher input costs will continue to support the current Lysine Hydrochloride market trend through mid-September 2023. As traders continued to concentrate on replenishing their inventory levels, one of the factors driving this increase in certain amino acid prices across the global market was the increased production volume of both grades.

Furthermore, even though they intend to raise their quotations even further, suppliers and retailers are having trouble growing their sales volumes in the European market. This is probably caused by several things, including the higher inflation rate in Europe, which makes consumers more frugal with their spending, the ongoing supply chain disruptions, which make it challenging for exporting regions to get their products to market like Lysine Hydrochloride, and the persistently elevated geopolitical tension, which further exacerbates uncertainty and instability in the European economy.

Apart from that, challenges in the fields of logistics and transportation have had a significant impact on the pricing chart for some amino acids. Due to trade disruptions between the APAC and European regions, the market trend for feed and food-grade Lysine hydrochloride was kept at the high end. Regarding the other macroeconomic variables, the high energy costs in Europe have made it more costly for manufacturers of amino acids to produce their goods, including Lysine Hydrochloride, leading to a continuous rise in costs. A further factor contributing to the upward price trend for Lysine Hydrochloride on the European market is the euro's depreciation against the US dollar, making amino acids more expensive for European consumers who import the product from outside the continent.

Moreover, as per the Chemanalyst anticipation, "If the economic condition of the global market continues to recover and inflation rates start to come down, it is possible that the exporting nations would start to increase their Lysine Hydrochloride sales volumes in Europe contributing to a higher price trajectory balanced with a continuous rising domestic and the regional inquiries for Lysine Hydrochloride."