Freight rates still on the rise, all eyes on the vit E market
Vitamins largely trade laterally, with vitamin C being closely watched by food and feed additive traders, and vitamin B12 trading slightly more slowly, he reported.
“Vitamin E, one of the ingredients in high quantity for animal feed premixes, has been at risk of price increases since last week amid market chatter about allegedly inferior production from one producer and tactical purchases in a larger end-user market exceeding 1,000 metric tonnes “,Stefan Schmidinger, partner, Kemiex, told us.
Amino acid prices are losing momentum: however, high volatility is observed in products of Asian origin, he noted.
Regarding the challenges of transport, global sea freight rates saw a further sharp increase from the second half of April on all routes covered, breaking new records, commented Schmidinger.
“In particular, the tariffs to South America have increased.”
Congestion at major European ports has been less severe than expected since the Suez incident, but it may take another month or two to return to normal levels, he said.
“While freight markets remain limited, newly concluded long-term contracts are now closed. It is also reported that large shippers who were not hit hard by the sharp increase in spot rates over the past year are now affected. “
Air freight rates remain high, he said, as demand for long-haul international passengers remains at a very low level for now and at least until the end of 2021, if not longer depending. vaccination efforts.
In more general market developments that have a potential impact on the supply of food additives, the The US dollar weakensFurther against the Chinese yuan at levels that were last seen in June 2018, found the latest market report from Kemiex.
Meanwhile, on Tuesday this week, the U.S. Department of Commerce announced its positive final determinationIn the investigation of anti-dumping duties on methionine from France, presented by petitioner Novus International Inc. The dumping rate for Adisseo France SAS is set at 43.82% and all others at 16.17%. Orders are scheduled to be placed in July.