A new agreement among leading manufacturers in China to reduce production is currently driving significant price increases. These have not yet been fully reflected in the European market. Therefore, the current situation may offer a good opportunity to secure volumes for the second half of the year.
Demand in Europe remains relatively subdued, which – despite rising prices at origin – currently results in a largely stable price level in the market.
Prices for citric acid remain at a very high level. In addition, the tight freight situation continues to put pressure on overall costs. Early planning for the second half of the year may be advisable to avoid further price increases.
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Prices for glycine in China have recently declined – similar to lysine. However, new volumes will not be available for shipment until August/September at the earliest, which should be taken into account in planning.
Availability of lactic acid is currently very limited due to significantly increased demand in Southeast Asia. Further price increases are expected. In addition, rising sea freight rates – particularly due to its classification as hazardous goods – are further exacerbating cost pressure.
Prices for potassium sorbate remain generally stable. However, availability of the powder grade is currently limited, and local volumes are only available to a restricted extent.
The continued delay in the EU’s decision regarding potential anti-dumping duties on imports from China is currently creating significant uncertainty in the market. As a result, availability is tight, with many market participants holding back or offering only limited volumes. At the same time, this situation is leading to highly volatile pricing with short-term fluctuations.
Sucralose prices remain at a level above the beginning of the year, while staying stable. Compared to previous years, the current price level still represents an attractive opportunity to cover requirements for the remainder of the year.
Taurine prices have more than doubled since the beginning of the year. At the same time, availability from major producers is severely limited. For any requirements in the second half of the year, prompt action is recommended, as no trend reversal is currently in sight.
Prices for tricalcium phosphate have continued to increase since the beginning of the year, driven by relatively strong demand. A short-term reversal of this trend is currently not in sight.
Prices for trisodium citrate remain at an elevated level. While FOB prices from manufacturers in China have recently become more stable with a slight downward tendency, high ocean freight rates and currency effects continue to put cost pressure on the European market. Early demand planning therefore remains advisable in order to secure availability and better manage potential cost risks.
New EU regulations are currently forcing manufacturers to adjust their production processes. This is leading to significantly rising prices as well as extended lead times, which are already stretching into the end of the third quarter.
Prices for xylitol continue to remain at a low and stable level. The main influencing factor at present is rising sea freight rates, which are increasingly impacting the overall cost structure.
