Amino Acids China E-News

Welcome to Amino Acids China E-News!

China, as a leading amino acid producer in the world, is witnessing a sustained growth in amino acids consumption, which was mainly boosted by downstream industries: feed, food, pharmaceuticals, etc. The growth potential in both production and demand will undoubtedly attract more attention from domestic and multinational counterparts. We hope Amino Acids China E-News will act as not only a quick pathway to view China’s amino acid industry, but also a long-term platform which shall help you win initiatives in business expansion in China and even the world.

Overall, domestic market of amino acids shows well in this August, reflecting by the stable or increasing prices of lysine and methionine. Thanks to the recovery of downstream pig breeding industry and the reducing supply due to production halt, the prices are expected to continually climb in the near future. Besides, it would be a good signal for amino acid manufacturers that the newly-harvested corn is entering into market and the supply is sufficient, which shall relieve their cost pressure mainly caused by the rising corn price. However, the temporary oversupply for domestic market forces domestic manufacturers to export more raw material products.

Judging from listed amino acid companies' financial reports released in Aug., they seem to have a hard time during the first half of 2014, mainly blamed to high production costs, depressed price and intense competition brought by the weak downstream demand, especially for animal breeding industry. On the contrary, many large feed manufacturers witnessed a performance growth during the same period, probably thanks to the relatively eased competition from a higher industry concentration. Besides, the lower price of feed additives, especially lysine, also means a lower costs in raw material procurement.

Some enterprises' moves should be worthy of attention. For example, Sichuan Hebang intended to raise funds for constructing methionine project in early Aug. and Global Bio-chem, a major amino acid manufacturer at home, is putting more efforts in developing high value added amino acid products.

To be noticed, the RMB/USD exchange rate in this issue is 6.1681 (the People’s Bank of China). If there are any specific topics you would like us to cover or any subjects you would like us to investigate in more details, please contact us by +86-20-3761 6606, or econtact@cnchemicals.com.