In 2015, a
slowdown in Chinese economic growth, serious overcapacity, low prices,
increasing burden from environmental protection and product homogenization
hinder the development of amino acid enterprises. They struggle for development
and make sweeping transformation and reform, in order to remain competitive and
profitable in the overall industry, according to CCM.
In 2015,
China's GDP growth was 6.9%, which didn't reach the 7% growth target. Economic
growth is slowing down. Domestic amino acid industry experienced a difficult
year under such backdrop.
Key points
throughout the whole year of 2015
Excessive
expansion
Feed grade
amino acid is the main force in domestic market. Because of excessive
production expansion before, lysine manufacturers were forced to control
production to against the continual fall in price; threonine has entered the
market saturation period.
Transformation
Production
overcapacity, low prices, increasing burden from environmental protection and
product homogenization impose serious constraints on the development of amino
acid enterprises. They made sweeping transformation and reform, specifically:
-
Meihua Holdings Group Co., Ltd. (Meihua Bio) planned
to acquire Ningxia EPPEN Biotech Co., Ltd. (EPPEN Biotech)
-
Global Bio-chem Technology Group Co., Ltd. (Global
Bio-chem) made reorganization plan
Big moves
frequently occurred: reorganization, transformation, mergers and acquisitions,
listing, production expansion...
RMB
depreciation
Since Aug.
2015, RMB has been devaluing to USD. According to the People's Bank of China,
the daily exchange rate for the Chinese currency was as high as RMB6.5528 per
dollar in 28 Jan., 2016. Nevertheless, there is depreciation tendency for RMB.
Chinese produced amino acids are mainly for exports. RMB depreciation enlarges
manufacturers' profit margin to some extent.
In 2016,
Chinese farming industry is likely to recover. For amino acid industry, it will
be full of hope for enterprises. Transformation is still the mainstream of
amino acid market.
Chinese lysine market, 2015
Source:
CCM
Chinese threonine market, 2015
Source:
CCM
Chinese methionine market, 2015
Source:
CCM
Chinese tryptophan market, 2015
Source:
CCM
China amino acid enterprises development, 2015
Source:
CCM
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 emailingecontact@cnchemicals.com or calling +86-20-37616606.
Tag: amino acid