In recent months, global markets for essential amino acids such as L-lysine HCl and L-threonine have experienced significant price declines across various regions.

This downward trend is influenced by factors such as overproduction, fierce competition among manufacturers, and fluctuating demand. We analyze these developments in detail and their impact on the animal nutrition industry.

L-lysine HCl: Overproduction and Shifts in Consumer Preferences

L-lysine HCl is an essential amino acid widely used in animal nutrition to enhance growth and feed conversion efficiency. Recently, the prices of this amino acid have dropped significantly in Asian and European markets.

This decline is primarily due to overproduction and shifts in consumer preferences toward alternative lysine forms, such as lysine sulfate and liquid lysine.

Increased demand for these alternatives has led to an oversupply of L-lysine HCl, contributing to the price decline.

In the United States, L-lysine HCl prices have remained relatively stable despite the global downward trend. This stability can be attributed to local factors, including consistent demand and the structure of the domestic market.

L-threonine: Intense Competition and Excess Stock

L-threonine, another essential amino acid in animal feed, has also seen price declines, particularly in China and Europe. Fierce competition among Chinese manufacturers for market share has led to rapid price reductions in these regions.

Overproduction and excess stock have kept prices low, and limited demand for the second quarter of the year has amplified this trend.

Additional Factors Influencing the Amino Acid Markets

Beyond overproduction and competition, other factors have impacted the lysine and threonine markets:

• Production Costs: Lower soybean prices have reduced feed production costs, negatively impacting lysine consumption.
• Transportation Costs: Rising transportation costs have offset the price reductions offered by Chinese manufacturers. As a result, delivered prices of Chinese products have remained stable or increased, forcing Chinese manufacturers to cut prices further to avoid stock accumulation.

Outlook

Given current trends, L-lysine HCl and L-threonine markets are likely to remain weak in the short term, especially in the absence of a significant increase in demand.

Manufacturers may need to adjust their production and marketing strategies to adapt to these market conditions.

Close monitoring of factors such as raw material costs, global demand, and market dynamics will be essential to navigating this volatile environment.

In conclusion, essential amino acid markets such as L-lysine HCl and L-threonine are facing significant challenges due to overproduction, intense competition, and fluctuating demand.