April 11, 2017
Expansion competition beats China methionine prices to new lows
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Methionine prices slid 10% during the first quarter, breaking new low records. From as high as RMB82/kg in Q1 2015, methionine prices have plunged over 70% to settle at slightly above RMB23/kg by end of March this year.
The two-year tumble of methionine market is the result of enormous capacity expansion over the past few years. Since Bluestar-Adisseo built the first methionine plant in China in 2013, the country's methionine capacity has surged from 70,000 tonnes per annum to around 300,000 tonnes by 2016. Meanwhile, in southeast Asia, Evonik has built a 150,000-tonne production in Singapore in 2014 while Korean feed additives manufacturer Cheil Jedang set up a factory in Malaysia to produce 80,000 tonnes of the amino acid by 2015.
In total, global methionine capacity has increased sharply by over 500,000 tonnes over the past few years. The price plummet to new historic low is therefore not astonishing.
By year 2020, methionine producers have plans to boost the global capacity to more than 2 million tonnes. The reshuffling of the methionine market is not done yet and it will not be shocking for prices to see lower lows.
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