US Lysine Hydrochloride Prices Recuperate in the Mid Q3 of 2023

The prices of US Lysine Hydrochloride showcased a steady uptick as August commenced for both the grades, including the feed and food grade. However, compared to the previous month, where the market price for Lysine Hydrochloride was down considerably, it improved to some extent as mid-Q3 arrived. Certain factors such as rising prices of sugar, the increasing cost of manufacturing, and surging domestic and overseas inquiries all together kept its prices on the north side.

Driven by a surge in end-user industries' demand for Lysine Hydrochloride and supply overhang owing to higher stocked-up inventories of the previous month, market prices of Lysine Hydrochloride have been increasing at a moderate level across the foreign markets, including the United States and other importing nations such as Europe. Similarly, recent market analysis by traders and analysts stated that elevated sugar prices used as a substrate in microbial fermentation as a driver of higher fermentation cost, resulting in a higher operational activity within the nations has kept the prices for feed-grade Amino Acids, including certain primarily the Lysine Hydrochloride on the upper side. This has significantly drawn a skeptical response from the procurement department. Moreover, the rising cost of upstream soybean meal prices is further attributed to this upsurged pricing trend for Lysine Hydrochloride across the overseas market.

Moreover, with this moderate rise in domestic and regional inquiries, both the merchants and the traders across the regional market keenly focus on clearing their inventories out to refill their shelves with Lysine Hydrochloride for newer batches in the warehouse for the upcoming fourth quarter. Besides this, the inflated cost of corn starch across the exporting nations from APAC, further linked to higher energy, heating, manufacturing cost, or feedstock liquid ammonia costs, were the reasons for the higher fermentation cost of those additives. This, in turn, further supported the upward price trajectory for Lysine Hydrochloride for this month.

Additionally, continuous rising freight costs in early August and disrupted supply-chain momentum from exporting nations further affected the overall market sentiments of various sectors, including the food and feed-grade industries. Additionally, as per the recent analysis by market participants, the depreciation of the Chinese Yuan against the US dollar further benefitted the buyers and traders as they could purchase the goods at a lower price value than projected.

Overall, the Lysine Hydrochloride industry in the United States is witnessing an uprise in prices throughout August 2023. This modest rise in Lysine Hydrochloride's values can be ascribed to various factors, including supply-demand balance, shifts in raw material costs, competitive pricing strategies, and disruption in global trading momentum. Moreover, as per the ChemAnalyst anticipation, the ongoing price escalation for Lysine Hydrochloride might persist throughout the third quarter of 2023 and in the forthcoming months.