Bulk Amino Acids Performed Well and the Price of Lysine, Methionine, Threonine and Tryptophan all Surged

Date: 2015-08-05

“In April, the National Bureau of Statistics of China published the national economic data. The data showed that China’s GDP grew by 7% in the first quarter, the lowest point for the past 6 years and many economic indicators dropped. Though the economic growth slowed down, the national economy operated smoothly and steadily in general. The employment, CPI and market expectation were stable, the industry restructuring were pushed forward steadily, the transformation and upgrading went well, new impetus were born and positive factors were accumulated.

According to the annual report of 201 4, listed feed enterprises performed well and gained profit. The economic slowdown in 201 4 affected livestock industry while large feed enterprises achieved progress by adopting flexible strategies. It can be seen that the application of feed grade amino acids in downstream market will be wider.
In April, bulk amino acids performed well and the price of lysine, methionine, threonine and tryptophan all surged. Major amino acid manufacturers started to rise the price by controlling the supply and demand of amino acids or by their industry presence. The surging price of methionine reminded us the huge profits of methionine during Sept.-Nov. 201 4. It is worthwhile to keep an eye on the changes of the market price of amino acids in the next months. Besides, minor amino acids achieved great technological progress. Technology progress will transform productive forces. It is expected that more breakthroughs will be achieved in minor amino acid industry.”

“On 16 April, 2015, the Action Plan on Water Pollution Prevention and Control was officially introduced by the State Council to strengthen supervision on industrial waste water, which will bring more environmental protection pressure to amino acid’s API
In 2014, Global Bio-chem performed unsatisfactorily. Accordingly, the gross loss of amino acid business further increased. This is mainly because the production cost grew and the lysine market was in the doldrums.
In 2015, Fufeng Group will launch amino acid drink “”ShenhuaZhujiu”” to target high-end amino acid products. Under the background of rapid growth of amino acid health-care products, Fufeng Group will set foot in health-care industry.

China Starch recorded a substantial revenue growth in lysine products in 2014, driven by an increase in sales orders from overseas customers. Under the lysine market downturn of last year, China Starch was confronted with huge challenges.
On 14 April, 2015, Henan Julong announced to cut tryptophan production because of weak demand from downstream industries and falling price of this product.This move will benefit to the balance of supply and demand of tryptophan.

In April 2014, the Shanghai Advanced Research Institute, Chinese Academy of Science, declared a progress in the issue of “”L-ser, as a intermediate metabolite of microbe, easily transformed into amino acids or organics””, which will be good for improving the industrial production level of L-ser through direct fermentation method.
Market prices of major amino acids in China, April 2015 In April 201 4, the main domestic lysine enterprises reduced production or suspended production, pushing up lysine price. It’s estimated that its market price will be on the rise in May, driven by the increased demand.

Imp. & Exp. overview of some amino acids in China, March. 2015 In Feb. 2015, the import volume of solid methionine in China dropped month on month. To be noted, the supply from Evonik’s Belgium plant saw a significant fall. In Feb. 2015, the exports of China’s cystine increased month on month, and it’s worth noting that Italy became the top one export destinations of China’s cystine.

In the past half year, Europe paid more and more attention to the security of strains in amino acid in China. In April, EFAS conducted an assessment for home-made lysine hydrochloride which was made from GM escherichia coli strain, and maintained that there were security problems.”

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