Amino Acids China E-News(Amino Acids China E-News 1803)

In March, many amino acids saw prices decrease, especially threonine and methionine. Luckily, the prices are likely to rebound, given the fact that Evonik, Ningxia Unisplendour, and Bluestar Adisseo successively raised their quotations, and that CJ’s methionine production will suspend in Malaysia.

Corn prices fluctuated and went up this month. As a result, lysine and feed producers bear pressure and thus became eager to raise quotations. Demand for feed will likely decrease in Q2 2018, due to the high prices and the slump in live pig prices, which have resulted in breeders making losses and do not want to replenish inventories.

In terms of producer, domestic amino acid health food giant Real Nutriceutical predicted in March larger financial losses in 2017, due to the significantly decreased sales in amino acid health-care products, the company’s leading business. Actually, the amino acid health food industry has been growing slowly in China, as consumers prefer vitamins and glucosamine.

In terms of export, less lysine and methionine were exported in China in Feb. due to the Chinese New Year holiday; however, cystine saw surges in export volume for the second consecutive months. The demand from Germany and Russia soared in Feb.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY6.3352 on 1 March, 2018, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.

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