The Financial Associated Press reported on April 3 that recently, most domestic amino acid market prices have remained stable and increased, and some varieties have temporarily fluctuated. The downstream demand for amino acid products tends to stabilize, and the demand will increase as the aquaculture industry gradually recovers in the later period.
Under the rapid development of the overseas epidemic situation, the quotations of certain amino acid products in the European market continue to rise. The previous increase in corn prices, the recent increase in soybean prices and soybean meal prices, and the supply of soybean meal in April will also have a certain impact on the amino acid supply and demand market.
Picture: All kinds of amino acid market quotations Picture source: Mobao.com
As the basic substance of protein required for nutrition, amino acids are widely used in condiments, feed additives, medicines, and nutritional supplements in the chemical industry. As of press time, the feed and seasoning sectors both rose more than 2% on the day.
According to the feed ingredient supply chain platform Mobao.com, on April 1, the valine Shenyang plant of the biotech company CJ Group said that production was suspended for about two months. The market supply was tight and the epidemic situation in Europe was intensified. The short-term market supply situation may be tighter. Recently, the methionine market has also been affected by the development of the overseas epidemic, and downstream factories are worried about stable supply. With the recent news of the suspension of production and maintenance and production restrictions of methionine factories, market prices have further pushed up.
Soochow Securities’ analysis pointed out that in 2020, due to the impact of the new crown epidemic, many chemical sub-sectors fell into suspension in the first quarter. In the first two months, the cumulative revenue of chemical raw materials and products fell 21.0% year-on-year, and the cumulative profit fell 66.4% year-on-year. However, the effects of the early supply-side reforms of the chemical industry are beginning to show, and the pattern of some sub-sectors is being optimized or reshaped.
In the feed sector , CICC, said, threonine, lysine and other additives in animal nutrition downstream costs accounted for a relatively small price elasticity. The overall supply of the industry is oversupply and the competition is fragmented. It expects that the industry will be shuffled soon, and the pressure on small and medium-sized enterprises from the epidemic may accelerate this process.
Ping An Securities believes that after the outbreak of the times, companies are actively feed upstream to downstream integration, head of corporate hog industry chain New Hope , DBN and other companies have basically feed, breeding, integrated layout veterinary vaccines. The rapid transformation of the downstream customer structure forced upstream feed companies to extend to the breeding link. In the last cycle, most pig feed companies chose the “pig farm service” sales strategy, which made them naturally have a “company + farmer” model. The downstream integration of the advantages of farmers and small and medium-sized farms.
In the spices sector , CRE Securities said, because of a multi-purpose material, diverse tastes and simple operation, Chinese seasonings increasingly popular. During the epidemic, as the demand for dining out and the demand for take-out were taken over by home cooking, the penetration rate of compound seasonings at the C-end increased. It is expected that young people will rely more on compound seasonings for cooking in the future. Frost & Sullivan predicts that in 2020, China’s per capita annual compound seasoning expenditure can reach 105.40 yuan.
Source: Huachuang Securities
Dongxing Securities pointed out that from the demand side, the C-side and the B-side jointly promote the development of the compound condiment industry; from the supply side, the fierce competition among companies is staking the race, optimistic about the hot pot sauce and Sichuan cuisine seasoning track; from the enterprise side From a point of view, companies with product stickiness, capital advantages and excellent management teams will become the main market integration forces. It is optimistic about the target Tianwei Food and Yihai International
Post time: Dec-17-2020