China Starch recorded a substantial revenue
growth in lysine products in 2014, driven by an increase in sales orders from
overseas customers. Under the lysine market downturn of last year, China Starch
was confronted with huge challenges.
Source: Bing
In 2014, China Starch Holdings Limited
(China starch) achieved USD109 million (RMB671.21 million) of revenue from
lysine segment, increasing substantially by 30.0% year on year. This business
segment includes lysine, fertilizers and other deep-processing products.
The revenue growth was mainly attributable
to an increase in sales orders from customers, in line with the continuous
exploration of the overseas markets. In 2014, the company recorded a
substantial YoY growth of 58% to 112,351 tonnes in lysine product sales. Due to
the overcapacity of lysine and intense competition in the domestic market,
China Starch, like most of the domestic lysine enterprises, quicken the pace to
overseas expansion. According to China Customs, the export volume of lysine
ester and salt amounted to 256,963 tonnes, hitting a record high, with a 34%
year-on-year growth rate.
The sales performance was disappointing in
the first half of 2014 due to the depressed animal feed market, leading to
consecutive losses on the lysine export trade from March to May 2014.
Additionally, the average selling price of lysine has fallen to an all-time low
of less than USD895/t (RMB5,500/t) in Q2, and its price decreased by USD195/t
(RMB1,200/t) in 2014 compared with that of 2013.
The company has completed the relocation of
the production facilities at the end of 2014. At present, the annual lysine
production capacity is 105,000 t/a, mainly for 98.5% lysine and 65% lysine.
Established in 2006, China Starch is mainly
engaged in the production of cornstarch, starch sugar, corn by-products and the
sales of electricity and steam.
About CCM:
CCM is the leading market
intelligence provider for China’s agriculture, chemicals, food &
ingredients and life science markets. Founded in 2001, CCM offers a
range of data and content solutions, from price and trade data to industry
newsletters and customized market research reports. Our clients include Monsanto,
DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.
For more
information about CCM, please visit www.cnchemicals.com or get in touch with us
directly by emailing econtact@cnchemicals.com or calling
+86-20-37616606.