CCM: Chinese amino acid industry experiences a complete transformation in 2015 02-22-2016

In 2015, a slowdown in Chinese economic growth, serious overcapacity, low prices, increasing burden from environmental protection and product homogenization hinder the development of amino acid enterprises. They struggle for development and make sweeping transformation and reform, in order to remain competitive and profitable in the overall industry, according to CCM.

 

In 2015, China's GDP growth was 6.9%, which didn't reach the 7% growth target. Economic growth is slowing down. Domestic amino acid industry experienced a difficult year under such backdrop.

 

Key points throughout the whole year of 2015

 

Excessive expansion

 

Feed grade amino acid is the main force in domestic market. Because of excessive production expansion before, lysine manufacturers were forced to control production to against the continual fall in price; threonine has entered the market saturation period. 

 

Transformation  

 

Production overcapacity, low prices, increasing burden from environmental protection and product homogenization impose serious constraints on the development of amino acid enterprises. They made sweeping transformation and reform, specifically:

 

  • Meihua Holdings Group Co., Ltd. (Meihua Bio) planned to acquire Ningxia EPPEN Biotech Co., Ltd. (EPPEN Biotech)
  • Global Bio-chem Technology Group Co., Ltd. (Global Bio-chem) made reorganization plan

 

Big moves frequently occurred: reorganization, transformation, mergers and acquisitions, listing, production expansion...


 


RMB depreciation

 

Since Aug. 2015, RMB has been devaluing to USD. According to the People's Bank of China, the daily exchange rate for the Chinese currency was as high as RMB6.5528 per dollar in 28 Jan., 2016. Nevertheless, there is depreciation tendency for RMB. Chinese produced amino acids are mainly for exports. RMB depreciation enlarges manufacturers' profit margin to some extent.

 

In 2016, Chinese farming industry is likely to recover. For amino acid industry, it will be full of hope for enterprises. Transformation is still the mainstream of amino acid market.

 

Chinese lysine market, 2015


Source: CCM

 

Chinese threonine market, 2015


Source: CCM

 

Chinese methionine market, 2015


Source: CCM

 

Chinese tryptophan market, 2015


Source: CCM

 

China amino acid enterprises development, 2015


Source: CCM



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailingecontact@cnchemicals.com or calling +86-20-37616606.

 

 Tag: amino acid

 


 

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