Lactose
The market is tightening on both sides of the Atlantic
Europe
Prices appreciated again after a short period of decline
Prices of lactose appeared to decline until last week but jumped back up again recently. As a result most product is now traded in the EUR 1100-1200 ex works range. Export volumes are down but so are imports and as there still seems to be some unfulfilled demand the market feels firm. Strong demand for SMP standardization is what seems to be driving the market in early December.
Americas
Upward price potential for Q1 is undeniable
The US lactose market feels tight and is expected to remain tight for most of Q1. Volumes available for early next year do not seem to be sufficient for the demand that is still out there. Product is traded in the range of USD 0.48-0. 55/lb (1060-1215/t) ex works, but it feels like we may go soon above these levels.
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