Amino Acid Market in China: Overall Stability Amid Weak Demand and Sparse Transactions. 09-25-2024

Summary:

The upstream supply of the amino acid market in China is normal, with an average market purchasing and selling atmosphere, and downstream demand remains rational and demand-driven. Lysine manufacturers' quotes are stable, with average downstream inquiry and orders, and exports are strong; 98% lysine hydrochloride manufacturers' quotes are steady, focusing mainly on export orders; 70% lysine manufacturers' quotes are slightly weak, with some terminals expecting a downward trend in the market, and demand is mainly for hard necessities. Threonine is in short supply domestically, with high spot transaction prices, and downstream users mostly maintain a demand-driven procurement strategy. There is a strong expectation of a decline in the price of methionine, which continues to be weak, with downstream demand remaining sluggish and actual transactions scarce. Tryptophan market manufacturers' quotes are slightly lower, with low downstream demand and slow restocking. Valine manufacturers' quotes are weakly adjusted, with a light market transaction volume.

 

Price Trend 

Data source:  ChemNet

 

Lysine, Valine, Tryptophan: Currently, the factory quotes for 98% lysine are temporarily stable, with the issuance of export orders being dominant. There is a higher downstream inventory for 70% lysine, and the market expects prices to fall, which results in low enthusiasm for domestic purchasing and selling activities.

Threonine, Methionine: Recently, the factory quotes have been maintained at a relatively high level. In the trade market, most merchants do not choose to build inventory. Manufacturers have a strong control over the supply of goods, which keeps the market supply relatively stable. The production cost of threonine is relatively stable, and the main raw materials for methionine production are energy chemical products such as propylene, methanol, and natural gas, whose price fluctuations are relatively small. It is expected that the prices of threonine and methionine will continue to remain stable in the short term.


Market Status and Influencing Factors

The current market situation and influencing factors for amino acids, particularly lysine, valine, and tryptophan, are as follows:

1.       Demand from the feed industry is growing slowly.

Currently, the demand for 70% lysine is relatively weak. Data from the China Feed Industry Association shows that in the first half of 2024, the total national industrial feed production decreased by 4.1% year-on-year. Slow growth in feed production implies limited growth in demand for lysine. Downstream users are cautious about the market, purchasing rationally, and mostly buying on demand without hoarding. The lack of robust growth in downstream demand makes it difficult for lysine prices to rise.

2.       Weakening cost support.

Lysine production primarily uses corn as a raw material, and corn prices have been declining since the second half of 2024. As corn prices fall, cost support weakens. In August, the average national corn price was 2286.78 RMB/ton, a decrease of 3.50% compared to July.

Source China Feed Industry Information Network.


Future Outlook and Challenges

1Expansion of Export Scale: Entering September, the production of lysine manufacturers is expected to remain normal, and the market supply is anticipated to be very abundant. At the same time, orders for the fourth quarter have already been signed overseas, and the manufacturers' willingness to support prices begins to emerge, which will play a strong supporting role for the domestic market in China. The promotion of corporate internationalization strategies is also continuously expanding into overseas markets. Companies will improve the international reputation and market share of their products by participating in international exhibitions, carrying out international certifications, and establishing overseas sales networks.

2Growth in International Market Demand: The global demand for amino acids continues to grow, especially in developing countries, where economic development and the improvement of people's living standards have led to an increasing demand for protein and nutritional health products, thereby driving the growth in demand for amino acids. As a major global producer of amino acids, China has cost and quality advantages and can meet the needs of the international market.

In general, In September lysine manufacturers' production is normal and the supply is sufficient. Overseas fourth-quarter orders lead manufacturers to support prices, which helps the domestic market. Globally, the demand for amino acids is growing, especially in developing countries. As a major producer, China has cost and quality advantages. With the improvement of living standards and the development of pharmaceutical and food industries, the demand for high-value-added amino acid products is rising. Technological innovation, like new fermentation processes and optimizing strain selection to reduce costs and increase production, drives the industry. Developing high-value-added products and continuous innovation is an important trend for meeting market demand and enhancing competitiveness.



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. 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 emailing econtact@cnchemicals.com or calling +86-20-37616606.




Subscribe to our Newsletter

 


Next Press