November 9, 2011
Capacity expansion pressures China threonine market
An eFeedLink Exclusive
Prices were lower.
In October, major threonine producers lowered quotes amid rising market capacity, led by the opening of Ningxia Yipin's 50,000-tonne new production line and Henan Julong Starch Industrial Co Ltd's 20,000-tonne trial production over the month.
By October 31, prices of locally-produced threonine dipped RMB0.40-1.00/kg on-month to reach RMB14.50-15.40/kg. Prices of imported threonine pushed lower to RMB16.70-17.60/kg.
In Europe, threonine prices for Q4 deliveries were in the range of EUR2.00-2.10/kg due to supply tightness. Chinese suppliers were quoting around EUR1.87-1.94/kg.
With supply far outweighing demand and corn input costs weakening, China's November threonine prices have scope for further declines. However, the downside will be limited as threonine prices are currently approaching production costs.
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