L-Arginine Prices Go North in the European Region; Here is why?

Hamburg, Germany: L-Arginine prices indicate a rising tendency in the European market. Energy prices kept showcasing inflated values, and rising inflation and a decline in consumer confidence affected the market emotions. The improving demand dynamics impacted the L-Arginine market. One factor that appears to be contributing to the surge in L-Arginine market prices this month is a restricted supply. The price of L-Arginine increased by about 4.91% this past week.

Despite the nation's problematic conditions, Europe undoubtedly maintains strong market emotions. Due to the confrontation between Russia and Ukraine, Europe was already facing a problem with the natural gas supply. L-Arginine prices in the German market were also impacted by the rising upstream whole grain prices, mainly corn, brought on by poor weather in significant agricultural regions like the United States, France, and China. These elements have been predominating and driving up operating costs for several commodities.

Furthermore, port closures would further affect the European supply chain, which was already hampered by cargo bunching and port congestion. Additionally, due to the government's Zero Covid policy, which resulted in ongoing supply problems and increased production costs, retail activity in the leading exporting nation of China slowed down. The supply chain will see additional halts due to the labour strike in response to inflation, resulting in port closures for more than a week.

The ChemAnalyst anticipates, "The price of L-Arginine will rise in the upcoming weeks due to port congestion, worker unrest, and energy shortages in the European market. A further factor supporting the price increase of L-Arginine on the domestic market would be an increase in downstream demand from the pharmaceutical industry."