March 3, 2020
Covid-19 update: Logistics recover 70% in amino acids markets; tryptophan, methionine availability remains tight(Mar 3, 2020)
Market participants reported that the transportation schedules of feed producers had recovered by about 70% and the supply crunch of raw ingredients had improved substantially.
Currently, lysine production in China has recovered more than 50% and that of threonine was about 60-70% of pre-Chinese New Year levels.
Supplies were tight, however, in the tryptophan market as Henan Julong Biological Engineering, a major producer continued to halt operation whereas the production of a new producer in Fujian province, Xiamen Xiangyu, was inconsistent. Consequently, tryptophan prices surged 33% after the Chinese New Year.
Methionine production recovery remained unclear but tight availability was a sign that the output of the product stayed low. Prices, which were extremely low before the festive break amid excess supplies, rose steadily as producers with stocks lifted price quotes.
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