Hello All,
Last November I wrote about a change in buying philosophy. Shifting from 'just in time’ to ‘just in case inventories'. From what you are telling me, and looking at the volume of product we shipped the last couple of months, I believe many of you have just in case inventories now. Congratulate yourself, not only did you save yourself a headache you saved a lot of money.
Amino Acids went up dramatically over the last couple of months.
Several indicators are showing continued poor availability through the summer. I am being told as fall arrives we should see some relief.
A couple of you had a laugh with me over my comment last month. So here it is again. My family will tell you I am a storyteller. {Sometimes I get lengthy} So the short version is in red, longer in blue.
Amino Acids Short... if you have room bring in a couple months supply.
Long... let's not forget United States does not make enough Threonine, Methionine or Tryptophan for the needs of our nation. Because of this we have to depend on import. Stockpiling, high freight rates, including difficulty getting loaded and unloaded at ports are causing increased pricing.
Methionine Short... Scary
Methionine Long... Methionine supply/cost is taking a beating. The arctic blast that hit Texas closed down the Novus production facility. The storm delayed chemical shipments to Evonik which already had a planned shut down for maintenance in March. Throw in the Department of Commerce announcement last Thursday on the anti-dumping investigations of product from France, Japan, and Spain. {Preliminary determinations are Adisseo-France 43.82%, Adisseo Spain 31.98%, and Sumitomo-Japan 135.10%. It will be summer before final orders are issued}
Threonine Short... took a big jump on Monday February 15th.
Long... Though hard to believe, from what I am hearing and seeing the second wave of the Amino Acid price increases are in progress. {largely due to availability; on February 15th two large suppliers raised Threonine .29 & .35 lb respectively} My brother likes to say "advice is only worth what you pay for it" {As an Attorney I think he is validating his profession} Though in this case I think while PALS still has well priced Threonine it might be smart to get some.
Lysine Short... Changes are happening fast.
Lysine Long... Liquid Lysine is becoming available from ADM. Contract offerings are changing the way we purchase.
Short... Thank you for your business.
Long... Thank you very much for your business.