Amino Acids China E-News 1603

Date: 2016-04

“In March 2016, the NDRC made a “yellow warning” on the market price of live pig. China’s ex-works price of live pig in early March increased over 50% YoY. This was mainly because of the short supply caused by the shutdown of large number of small farms.

However, the soaring pig price didn’t boost the market prices of amino acids. For instance, the market prices of 98.5% lysine and 99% threonine fell by 3% MoM, due to the sluggish demand from pig farmers. Stricter environmental protection policies discouraged farmers from increasing the number of pigs in farm, despite the soaring price.

Meanwhile, more Chinese enterprises engaged in developing high-end amino acids. Meihua Bio and Fufeng Group, two leading manufacturers of glutamic acid and MSG, announced rises in this business in their 2015 financial figures. But both the two companies plan to focus on the development of other high value-added amino acids, like threonine and pharmaceutical grade amino acids.

In Q2 2016, China’s market prices of amino acids are less likely to rebound. Apart from the influence from sluggish downstream demand, the fall in the market price of corn also counts. So far, some national policies to pull down temporary storage of corn has come out, which will further the falling price of corn. This can reduce the production cost of amino acids, like lysine and threonine, and further, their market prices.”

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