Preholiday Stocking Pace Accelerates Amid Price Fluctuations

effamall.com 2 January, 2025

Preholiday Stocking Pace Accelerates

During the 52nd week of 2024, inquiries and the trading value on Mobaobuy.com increased by 40.1% and 45.0% month-over-month, respectively. The conversion rates have reached 100%, mirroring that the purchasing rhythm continues to accelerate ahead of the Spring Festival.?

This platform’s first three products in trading value were 70% L-Lysine, L-Threonine, and Calcium Phosphate this week, with 98.5% L-Lysine dropping to fourth place.

Preholiday Prices for Amino Acids Stand Steadfast

Upstream manufacturers are yearning for the constant pricing and have started to raise export quotations specifically for certain regions, accelerating their stocking activities as the Spring Festival draws near, despite being faced with a series of adverse impacts incurred by the EU’s anti-dumping procedure.

Specifically, this year many feed companies intend to suspend logistics or take an early holiday in mid-January of the next year. Therefore, terminals have heightened their inquiry and purchasing interests for goods arriving by January 20, contributing to robust traded prices of arrivals by the Spring Festival and higher trading volume.

Market quotations for 98% L-Lysine, 70% L-Lysine Sulfate, and Threonine are all trending robustly. According to Mobao’s statistical analysis, an increase has existed in this week’s spot quotations for Threonine (+ RMB 400/ton), 98% L-Lysine (+ RMB 207/ton), and 70% L-Lysine Sulfate (+ RMB 61/ton) compared to the previous week, while only those for Methionine and Calcium Phosphate have declined by RMB 120/ton and RMB 90/ton, respectively.

Future Market Trends Remain Unclear

With the EU’s recent anti-dumping announcement coinciding with European Christmas and New Year holidays and provisional measures based on the preliminary ruling results taking effect from January 14, the entire European market has been characterized by a mixture of perplexity and calmness.

Intense reactions are anticipated to occur among the European Amino Acid market players in mid-January, which are impacted by not only the preliminary ruling results but also Chinese manufacturers’ recent market strategies, overseas manufacturers’ production and supply capacity, as well as trade policies in the North and South American nations.?

The perplexity is projected to envelop the whole European market in the next half month. Meanwhile, some Lysine manufacturers overseas are adjusting their business strategies, and the EU manufacturers of other products are inclined to make sound plans and follow the prevailing trend.?

98% L-Lysine, 70% L-Lysine Sulfate (including 80% L-Lysine during the marketing period), and even liquid Lysine products are likely all facing significant shifts in supply structures and demand patterns.

A Vital Globalization Opportunity for China’s Amino Acid Industry

As it stands, Chinese feed companies may respond aggressively. Whether it is lodging appeals or developing positive market strategies, they are likely to maintain greater strategic initiative than during the earlier anti-dumping investigation. This could present a vital opportunity for the Chinese amino acids industry’s globalization efforts, enabling Chinese manufacturers of amino acids to regard the preliminary anti-dumping ruling as a strategic turning point for globalization and motivating them to achieve a leap forward in designing development tactics and international market plans.?

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