Amino Acid Markets Stall as Trade Tensions Mount

Global Prices Remain Flat Amidst Increasing Freight Costs

The international market for feed-grade amino acids is experiencing a slowdown, with prices for key products like lysine and methionine remaining stable but weak. Ongoing trade disputes and subdued demand are creating headwinds for the third quarter, even as production costs in China remain relatively low.

Lysine Market Under Pressure

The global lysine market is particularly vulnerable, impacted by anti-dumping investigations initiated by the United States. Despite historically low prices from Chinese manufacturers, prices in Europe have not seen corresponding decreases. Rising freight expenses are further complicating the situation for buyers.

According to a recent report by the USDA, global agricultural trade is projected to reach $2.8 trillion in 2025, highlighting the interconnectedness of feed additive markets with broader economic trends. USDA Agricultural Trade Data

Freight Costs Offset Low Production Prices

While feed additive manufacturers in China are offering lysine at historically low prices, the benefit is being partially offset by increasing shipping costs. This dynamic is creating uncertainty for importers and impacting overall market stability.

Marieke Ploegmakers and Matthew Wedzerai are closely monitoring the situation, along with Treena Hein, providing expert analysis of these evolving market conditions.

The current market conditions underscore the sensitivity of the feed additive sector to geopolitical factors and logistical challenges. Industry stakeholders are carefully assessing the potential for further disruptions as trade policies continue to evolve.