For the Quarter Ending June 2023
North America:
In the United States, Methionine prices experienced a decline of 16.57% for food-grade and 0.83% for feed-grade variants from April onwards, signaling a persistent weakness throughout the second quarter. This downtrend can be attributed to amplified supply levels and diminished demand, both domestically and internationally. The Purchasing Managers' Index (PMI) for June, which registered at 46.3 compared to the outset of the second quarter, underscores reduced buying activity among end consumers. With subdued market demand, industry participants have opted to reduce Methionine prices to alleviate inventory pressures. Furthermore, the decline in energy costs, a significant input expense for production, reflects the global economic slowdown and lower oil prices, further reinforcing the downward trajectory of Methionine prices. Elevated interest rates have also curtailed Methionine demand in the US market, contributing to the pricing downturn. Additionally, the appreciation of the US dollar against the Chinese yuan in June has facilitated cheaper imports, thereby increasing Methionine availability and placing additional downward pressure on prices.
Asia Pacific:
In China, both food-grade and feed-grade Methionine prices dipped by 16.57% and 0.83%, respectively, from April levels during the second quarter. This drop was primarily a consequence of reduced demand from the food and beverage, nutraceutical, and pharmaceutical industries. An initial surge in inventories at the commencement of Q2 set the stage for continued market weakness. Decreased uptakes from both domestic and international markets compounded the persistently declining trend. The official Manufacturing Purchasing Managers' Index (PMI) in May slipped to 48.8 from April's 49.2, signifying a contraction in the manufacturing sector throughout Q2, leading to reduced production activity due to weakened end-sector demand. The subsequent decrease in new order placements during Q2 also contributed to the price reductions, as market providers adjusted prices to clear inventories while maintaining profitability. Additionally, extreme temperatures in June hampered trading activity, elevating supply levels within the Chinese domestic market and intensifying the downward price pressure.
Get Real Time Prices of Methionine: https://www.chemanalyst.com/Pricing-data/methionine-1507
Europe:
In Europe, Methionine prices in June recorded declines of 0.79% for feed-grade and 10.71% for food-grade variants compared to April levels, signifying a continued weakness during the second quarter. Low purchasing activity and ample inventories in the German market were pivotal factors in this price descent. Germany's Manufacturing Purchasing Managers' Index (PMI) for June 2023 dropped to 41 from May's 43.2 and April's 44.5, indicating a manufacturing slump attributed to the ongoing impact of the COVID-19 pandemic. Subdued end-user demand translated into a swifter decline in new orders. In accordance with the Federal Statistical Office, inflation, as measured by the Consumer Price Index (CPI), surged to 6.4% in June, a 0.2% increase from May. The European Central Bank's decision to raise interest rates in a bid to curb inflation further depressed consumer demand. Moreover, the Euro's appreciation against the US dollar in June facilitated cheaper imports and bolstered Methionine availability within the German market, intensifying the downward price pressure on Methionine.
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