We recently discussed the force majeure issued by BASF in response to the fire at a factory in Ludwigshafen which impacted the supply of intermediates for the production of several key ingredients, including Vitamin A. We reviewed the effect on the market and saw that this supply-side incident had yet to influence demand. We’ve been closely tracking the price of Vitamin A since and wanted to give readers an update.
While we have heard murmurs of worry from the market regarding the impact on Vitamin A and other products made from sodium methylate, it remains that for the time being the market is largely unaffected. In fact, the price of Vitamin A globally decreased by 3.2% in the last week. Following the announcement by BASF, many across the market also understood that relatively little sodium methylate is needed for the European production capacity of Vitamin A. This may be one reason for the lack of market response, though we intend to continue watching Vitamin A closely.
Glycine prices follow glyphosate increases
The price of Glycine has been increasing in the market. Most Chinese industrial grade glycine is used for glyphosate production, making the markets for glycine and glyphosate closely related. The price of glyphosate increased by 169% in the last year, driving the upward price movement seen in glycine.
Glycine is a recent addition at the request of our users. As we continue to build out the report for this product, we ask you to share this with people who trade this product. The more users with relevant market data on Glycine benchmark their price in Glowlit, the better we will be able to share with you critical market trends happening in this market.
Insect meal and other PAPs approved by the EU
Insect meal is another recent addition to Glowlit and is on our radar this week because just days ago the EU approved the use of animal meal from insects in pig and poultry feed. Overall, the global market for Processed Animal Proteins (PAPs) and insect meal is unstable. Prices for animal proteins remain localized as sellers and buyers manage supply chains risks associated with delays and high freight costs. In the United States, increased shipping costs are pushing the domestic market price of meat and bone meal downward. While many U.S. producers would love to take advantage of global arbitrage opportunities, the cost of freight does not make it worthwhile.
Insect meal is nutritious, economical and a growing alternative to other sources of feed protein including soybean meal (SBM). Black soldier fly meal is an especially good option since it is higher in lipids and calcium compared to SBM. Crickets are very strong nutritionally but represent a less economical option. As a “circular economy” feed, insect meal is considered to be a highly-sustainable protein. New companies aiming to industrialize insect protein production are sprouting across many parts of the world, including Europe, North America, and Australia, though actual capacity is growing at a slower pace. As with all our new products, you can benchmark your price today to be among the first users with access to a full price report.