July 18, 2013
Buoyant export demand tightens China tryptophan supply, strengthens price
An eFeedLink Exclusive
Price summary
Prices moved higher.
Demand for tryptophan remained buoyant in Europe due to high inclusion rates in fed formulation. Hence, as buyers stockpile inventories while renminbi depreciated, supplies of tryptophan tightened substantially, driving prices to rise significantly during June.
In the domestic market, tryptophan usage was slow while feed demand improved less strongly than expected. Nonetheless, several buyers accumulated some supplies fearing that tryptophan market will enter a rally amid a supply crunch.
As of July 14, price quotes by tryptophan producers in were higher in the range of RMB95-105/kg. Prices of 10%-tryptophan premixes increased to the range of RMB7.70-8/kg.
Prices of an imported brand of tryptophan were at RMB125-140/kg.
In Europe, price quotes for spot deliveries were at EUR14 -15/kg., while those for Q3 deliveries were in the range of RMB12-12.50/kg.
Tight supplies will underpin tryptophan prices while producers attempt to maximise profits. However, with feed demand rising slowly in China and Chinese buyers making procurements cautiously, the upward scope of the market will be limited.
RMB1=US$0.1630 (Jul 18)
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