CoViD-19's influence on amino acid industry 02-20-2020

Summary: Affected by the COVID-19, trade flows have been restricted owing to the traffic control in the most areas of China. Most amino acid enterprises said they have difficulties in delivering goods now. Besides, many amino acid processing enterprises had postponed restarting the work. During the Spring Festival holidays, most amino acid enterprises operated normally, but in the later stage, the operating rate in amino acid industry may decrease.

Outbreak of the Corona Virus Disease 19 (COVID-19) before and after the Spring Festival has a certain impact on domestic amino acid market. Production and sale have been negatively affected.

  • During the Spring Festival holidays, most of the amino acid enterprises maintained normal production while some of them reduced or suspended production. Affected by the epidemic situation, the logistics transportation was limited. The basic materials for amino acids production, such as corn, chemical raw materials and package materials, were insufficient in most enterprises' stock. And other deep processing industries also needed the raw material resources, which would have a negative effect on the production load of amino acid industry in the later stage.
  • Amino acid processing enterprises had postponed resuming work. Many of them had announced that they would return to work after 9 February. The prices of amino acids in some areas had been raised, but as the movement of population and the logistics transportation were restricted, the purchase and sale in the market remained sluggish.
  • Most amino acid companies and traders said they meet difficulties in delivering goods at the moment, and a few showed they can only deliver small quantities to the surrounding areas. Motor vehicle transportation in Northeast Region has been basically stopped. And the delivery in railway transportation is quite limited. However, sea transportation is less affected.
  • All in all, logistics transportation is still a fundamental problem because the time of epidemic control is uncertain. However, with the implementation of various government policies, the epidemic situation may be alleviated, and then the amino acid market will be better. In addition, the accumulated consumer demand will be "released" in the near future, so the rigid demand for amino acids still exists.

Table Production, logistics and work resumption dates of amino acid enterprises during Spring Festival holidays in 2020

Enterprise Production Logistics Work resumption date
Anhui BBCA Biochemical Co., Ltd. Normal Motor vehicle transportation is restricted 9 Feb.
Inner Mongolia Eppen Biotechnology Co., Ltd. Normal 1 Feb.
Northeast Hulun Buir Fufeng Biotechnology Co., Ltd. Normal 30 Jan.
Tongliao Meihua Biological Sci-Tech Co., Ltd. Normal 3 Feb.
Dongfang Hope Baotou Bioengineering Co., Ltd. Shutdown (unknown resumption date)
Ningxia Unisplendour Tianhua Methionine Co., Ltd. Normal 10 Feb.
Ningxia Eppen Biotechnology Co., Ltd. Normal 1 Feb.
Xinjiang Meihua Amino Acid Co., Ltd. Normal Motor vehicle transportation and railway transportation are restricted 3 Feb.
Xinjiang Fufeng Biotechnology Co., Ltd. Normal 30 Jan.
Henan Julong Biological Engineering Co., Ltd. Normal 3 Feb.
Jilin Meihua Amino Acid Co., Ltd. Normal Motor vehicle transportation and sea transportation are restricted; railway transportation is normal 3 Feb.
Dacheng Biochemical Technology (Songyuan) Co., Ltd. Suspended production 10 Feb.
Qiqihar Longjiang Fufeng Biotechnology Co., Ltd. Normal 30 Jan.
Heilongjiang Eppen Biotechnology Co., Ltd. Normal 1 Feb.
Suihua Xiangyu Jingu Biochemistry Technology Co., Ltd. Normal 10 Feb.
Shandong Shouguang Juneng Golden Corn Co., Ltd. Normal Highway is closed; delivering small quantities to surrounding areas 31 Jan.
Zhucheng Dongxiao Biotechnology Co., Ltd. Normal 31 Jan.
Shandong NHU Amino Acid Co., Ltd. Normal 10 Feb.

You can find out more information about the article at CCM Amino Acid China monthly newsletter February 2020 issue. 

Email emarket1@cnchemicals.com to know more. 



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