For the Quarter Ending September 2023
In the third quarter (Q3), Amino Acid prices witnessed a significant drop in the first half, maintaining a pessimistic outlook until the conclusion of August. This depreciation was primarily attributable to a substantial decline in demand within the food sector, triggered by a consistent reduction in consumption. The economic instability in the US and the global surge in inflation further suppressed downstream purchasing, contributing to the descent of Amino Acid prices. Some businesses opted to scale back their import operations due to sluggish economic growth, raising concerns about future demand. Moreover, businesses’ reluctance to accumulate excess inventory, fearing potential sales difficulties, was linked to the overall decline in trade. However, by the second half of Q3, specifically in September, prices stabilized, exhibiting a gradual rebound compared to the preceding month. While new demand for Amino Acids was not exceptionally robust, the recent price firmness enabled merchants to command higher prices for their products and clear their accumulated stockpiles. Additionally, increased consumption in the animal feed, pharmaceuticals, and cosmetics sectors supported this upward trend until the final weeks of September 2023, balancing the market’s purchasing activity as merchants had ample stocks to meet the arriving demand from feed industries.
Amino Acid prices displayed a negative trend in terms of demand until the middle of the third quarter of 2023, but they improved towards the end of September 2023. This decline was driven by reduced consumption in the downstream sector, resulting in surplus stockpiles among merchants. The market dynamics were further influenced by high amino acid inventories among suppliers, compelling them to significantly lower their prices to move their products. A recent survey revealed a decline in the new orders index from 57.4 in June to 55.9 in July 2023, along with a decrease in the employment index from 54.2 in June to 52.9 in July 2023. In July, Amino Acid trading activity slowed due to diminished demand both domestically and internationally. Additionally, increased Amino Acid supply from China and other major producers contributed to lower global prices, exerting pressure on prices in India. Furthermore, the prices of raw materials used in the production of certain amino acids decreased, contributing to the downward trend in Amino Acid prices during July. However, towards the end of Q3, Amino Acid prices significantly rose across the Indian market due to high demand. Suppliers grappled to meet the rising requirements, attributing this price surge to increased demand for specific amino acids in the livestock industry. Moreover, heightened consumption of meat and dairy products containing elevated levels of these amino acids in both domestic and global markets kept market sentiments positive throughout September 2023.
Get Real Time Prices of Amino Acid: https://www.chemanalyst.com/Pricing-data/amino-acid-1120
In the European market, particularly in Germany, the price trend during the third quarter of 2023 mirrored that of the United States. Prices experienced a decline until August, partly due to weakened purchasing activity in the domestic market, leading to fewer inquiries from suppliers and retailers. As the monsoon season approached, buyers hesitated to place large orders, fearing product damage, further impeding restocking efforts. Domestic suppliers, aiming to replenish stocks and reduce current inventories, resorted to offering competitive pricing and cutting costs, adding further pressure on prices in a downward direction. However, as September 2023 approached, prices began to stabilize. Suppliers expressed interest in offering their goods at higher prices to recover previous profit losses. Despite this, buyers remained cautious, waiting to see if prices would decrease further. Additionally, the rising costs of fuel and energy in exporting nations increased manufacturing expenses, supporting higher prices for imported goods. Although new orders consistently increased, they remained below the expectations of market participants in the feed and food sectors.
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