Lewes, DE -- (SBWire) -- 06/19/2015 --On 25 May, 2015, Shanghai Composite Index rosed by 3.4% to 4,81 3.798 point, breaking the highest record since Jan. 2008. This month, the National Development and Reform Commission proposed over 1 ,000 projects and encouraged private investors to invest, construct and operate the above projects. Besides, the Ministry of Finance of People's Republic of China announced that import tariff on daily consumer goods would be lowered down in June. The favorable news boosted the stock market.
However, unlike the soaring stock market, consumer demand in China continued to drop. In the first quarter of 2015, the demand for imported goods dropped by 7%, the biggest slowdown since 2009. Consumer demand from breeding industry and feed enterprises was weak, thus the market price of feed grade amino acid in May dropped.
Though the breeding industry was in sluggish, we shall keep an eye on the changes in this industry. The price of pork started to rise which suggests that it may get out of downturn. The live poultry market in Shanghai re-opened and Guangdong also launched operation restriction plans for live poultry market. Chinese consumer's habit on poultry may change in the future.
The economic slowdown and the low consuming demand all put pressure on manufacturing industry. We shall also focus on the environmental protection. The new Environmental Protection Law had been put into effect for nearly half a year, which had brought profound impact on food, feed, breeding and API enterprises. For one thing, more and more enterprises had to spend money to transform and upgrade their technology to reduce pollution. For another, some enterprises which break the law are fined or had to relocate or stop production to rectify. The environment protection pressure raised enterprise's cost while it also promoted the consolidation of all industries.
Guangdong issued the "Work Scheme of Centralized Slaughtering, Cold Chain Distribution, Fresh Poultry For Sale in Guangdong" (Work Scheme) to raise requirements on the live poultry market operation, which will exert an influence to the poultry breeding industry and downsteam consumption of poultry in the future, resulting the decreasing demand for feed grade amino acid.
The market price of live pig continued to rise starting from March 2015, thanks to a better balance between supply and demand. It is predicated that the price of live pig in the future will lift itself out of the doldrums, boosting breeding industry and feed industry, so that the market demand for feed grade amino acids will be increased.
Considering the current market conditions and dynamics, NB Group suspended VB2 production to turn to threonine production.
On 14 May, 2015, Meihua Bio announced that the patent infringement case of CJ Group sued against Inner Mongolia Eppen was filed by the Hohhot Intermediate People's Court. The verdict is worthy of special attention.
Changchun municipal government of Jilin Province proposed plans to aid the reorganization of Global Bio-chem, under the background of the company experiencing unsatisfactory performance in recent years.
East Hope Group plans to invest in corn deep-processing projects in Xinjiang Circular Economic Industrial Park during 2016-2020, including the production lines of lysine, threonine, tryptophan, etc.
Under the incremental environment protection burden, Fufeng Group intends to put more investment in pollution control. Of this, it has invested in three technical innovation projects for controlling flue gas pollution.
In May 2015, the market price of methionine dropped. According to the supply and demand of methionine in Chinese market, the price of methionine is likely to rebound in the future.
In May 2015, the market price of lysine dropped, because of increasing supply and weak demand from downstream industries. It's estimated that the price will maintain low level in the future.
In May 2015, the market price of threonine decreased because of the weak demand. It is estimated that its will continue to drop in the future.
In March 2015, the import volume of methionine soared month on month in China. Of this, the imports from Evonik's Belgium plant increased significantly.
In March 2015, China's export volume of lysine ester and salt fell month on month, and the exports to the Russian Federation, Germany, Belgium and Lithuania all decreased.
Report Covered:
- Cities in Guangdong to set restricted zone of live poultry business before end of Oct. 2015
- Market price of live pig continues to rise since March 2015
- NB Group turns to threonine production
- Inner Mongolia Eppen's lysine patent infringement case filed
- Changchun municipal government supports Global Bio-chem's reorganization
- East Hope Group to build amino acid production lines
- More investment in environmental protection by Fufeng Group
- Market price of methionine falls sharply in May 2015
- Market price of lysine falls in May 2015
- Market price of threonine drops in May 2015
- March witnesses MoM growth in methionine imports
- China's lysine ester and salt: MoM drop in exports in March 2015
- NUTM's phase 2 DL–methionine project begins construction
- Sichuan Hebang's methionine project processing well
- China's cystine: MoM fall in export volume in March 2015
- Ningxia Chengzhi Ansun to build minor amino acids production base
- Yongan Pharmaceutical fined for environmental violations
- Yifan Xinfu to carry out ?-alanine expansion project
- Ningxia EPPEN to construct lysine hydrochloride project
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