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How to win in the chaotic feed additives market with stability
1
Variables increase as the Russia-Ukraine conflict enters its fourth day.
The biggest impact of the Russian-Ukrainian conflict on the industry is the cost of natural gas in Europe. On the first day of the conflict, European gas prices rose by 60%, and some European chemical companies, including BASF, began to adjust their original plans to increase production in March as the weather warmed.
In terms of vitamins and amino acids, methionine should be the most influential. The main raw materials of methionine, propylene and sulfur, are related to natural gas, and natural gas is also the direct raw material for methionine production.
In response to the methionine market, although domestic factories have continued to increase their quotations recently, the prices acceptable to the market have not changed much. The recent increase in quotations by factories has promoted a substantial increase in the transaction volume at the current price level.
2
The prices of 98% L-lysine hydrochloride and L-threonine continued to stabilize due to the tie-in sales of amino acids by some manufacturers and the recent sales support of 70% L-lysine sulfate and the stability of foreign orders. After March, the downside risks of the prices of these two products will drop significantly in the first half of 2022, and there may even be some upside risks, which requires more attention to the market sales strategies and rhythms of upstream leading companies.
3
The market price of vitamin E this week rose to 86 yuan/kg or even higher, but there was almost no purchase order from the downstream, and the market price was seriously hindered. The market can still accept the price of about 84 yuan/kg. Similarly, after raising the quotation, vitamin E inquiries and shipments of 83-84 yuan/kg increased slightly.
The recent changes in the raw material market, US soybeans hit a new high in nine and a half years, and the domestic soybean meal spot price rose sharply for four consecutive days, with a cumulative increase of 470 yuan / ton, and the pace of market rush for goods intensified. The corn price rose strongly inside and outside the market, the price of corn in Northeast China rose strongly, and the deep processing enterprises actively raised prices to support the strong operation of the market price.
4
Judging from the market this week, the market has been affected by multiple factors, and the market changes are more complicated. It is also difficult for many leading manufacturers to predict the future trend.
In March and April, we will welcome the vitamin industry high-level forum, the feed enzyme preparation industry high-level forum, the amino acid and feed raw material application seminar and the 2022 China Feed Industry Exhibition, which were postponed from December last year to this year due to the epidemic.
These meetings will also have a certain impact on the market.
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