Summary:
The European
Commission has recently embarked on an anti-dumping investigation into Chinese
exports of valine, involving five Chinese companies. This move follows a
preliminary ruling on anti-dumping duties for Chinese lysine exports. Despite
the tariffs imposed, China's lysine market position remains robust due to high
EU demand and limited global supply alternatives. The ongoing trade disputes
highlight the complexities of international trade in amino acids and the
potential for Chinese enterprises to accelerate their overseas expansion plans.
P1 Anti-dumping Investigation on Valine by the European Commission
According to CCM market sources, French company Metax has filed
an anti-dumping complaint against five Chinese enterprises, namely Huaheng,
Yipin, Fufeng, CJ China, and Meihua, with the European Commission regarding
valine imports. The period covered by this dumping investigation is set from
October 1, 2023, to September 30, 2024, while the injury investigation period
spans from January 1, 2021, until the end of the dumping investigation period.
A preliminary ruling in this case is expected within seven months, with a maximum
duration of eight months.
P2 Anti-dumping Investigation on Lysine by the European Commission
Prior to this, the European Commission initiated an anti-dumping
investigation into lysine originating in China and recently published its
preliminary ruling on anti-dumping duties for Chinese lysine exports, with
tariffs ranging from 58.3% to 84.8%. Although this ruling has had a short-term
impact on Chinese lysine exports, the overall impact may be limited due to the
continued strong demand for lysine in the EU.
According to CCM Market Insights, China exported approximately
1.8 million tonnes of lysine globally in 2023, with nearly 490,000 tonnes
destined for the EU, accounting for roughly 27% of the country's total export
volume. Given the EU's estimated lysine demand of around 500,000 tonnes in the
same year, coupled with METEX's full-capacity production of 80,000 tonnes, the
region still confronts a significant supply gap exceeding 400,000 tonnes. As
China stands as a pivotal global supplier of lysine, with combined capacities
from other nations barely topping 500,000 tonnes, the EU is likely to continue
relying heavily on Chinese imports to meet its requirements.
The imposition of these anti-dumping duties could potentially
cascade down to EU livestock farmers and trigger a surge in export activities
in the near term. Data from the General Administration of Customs reveals that
from January to October 2024, China's export volume of 98% lysine increased by
17%, indicating the resilience of China's market position despite production
constraints.
Longer-term perspectives reveal that such trade frictions might
catalyze Chinese enterprises to accelerate their overseas expansion strategies.
Notably, leading amino acid producers such as Meihua Biological Technology and
Fufeng Group have already embarked on aggressive internationalization paths.
Meihua Biological, for instance, has announced the acquisition of food and
pharmaceutical amino acid businesses to bolster its overseas forays, while
Fufeng Group intends to establish production facilities in the United States
and other regions.
Collectively, with the heightened global focus on food security
and steady demand growth from Asia, Africa, and Latin America, the amino acid
market remains optimistic in its outlook. However, caution must be exercised
regarding the uncertainties surrounding the final anti-dumping outcome,
fluctuations in overseas demand, and the progress of enterprises' overseas
footprints, as these factors may influence future lysine prices and sales
volumes.
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.
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