Amino Acids China Monthly Report

Welcome to the December issue of Amino Acids China E-News.

Several construction projects were completed or are about to be completed:

• Fubang Biotech introduced new capacities for creatine, protein powder, culture medium and glycolic acid, and Huaibei Rongfeng introduced new amino acid derivative capacities, as their respective projects were completed and passed EP acceptance check.
• Grand Life Science's taurine project and Grand Hoyo's amino acid industrial construction project (Phase I) will soon be completed.
• Phase I of Jiangning Biotech's green circular industrial park project will soon be completed, including capacities for 5-Hydroxytryptophan and others.

Recent projects to be built include:

• Tai'an Synceres's project of ergothioneine (EGT), ectoine, GABA and others;
• Tianjin Bloomage's EGT project;
• and Grand Biotech's "technological upgrading project for amino acid series products".
• By building new projects, Luning Pharma, Ling'an Tech and Beisheng Kangde Pharma will introduce respectively 2,900 t/a, 1,500 t/a and 600 t/a of new production capacities for creatine monohydrate.

Governmental Direction:

• MARA's National Animal Husbandry Station released a guidance document on reducing soybean meal usage and substituting soybean meal in the farming of pigs, beef cattle and mutton sheep.
• The draft of national standard Nutrient requirements of meat-type duck was made open for public comments, containing stipulations on four meat-type duck breeds' requirements for amino acids in feed.

Price: Ex-works price of threonine in Dec. 2023 retreated from a high level, due to faltering demand and sliding raw material costs.

Import and Export: In Jan.–Oct. 2023, China's import volume of methionine saw a YoY growth of 4.47%, and export volume of methionine grew by 6.95% YoY.

Reminders:

1. The USD/CNY exchange rate in this newsletter is USD1.00=CNY7.1104, which was sourced from the People's Bank of China on 1 Dec., 2023. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.
2. In this newsletter, the variance rates (MoM, QoQ, YoY, etc.) of all figures that involve RMB/USD conversion (prices, sales values, costs, etc.) are calculated with pre-conversion RMB prices/values, except for the figures in Import and Export column.