Adisseo: Sales of liquid methionine accelerate growth

Methionine market outlookEfK China Feed Industry Information Network-Based on feed, serving animal husbandry

Methionine market demand: the strong growth of the Chinese market drives the global demand for methionine to grow faster than usualEfK China Feed Industry Information Network-Based on feed, serving animal husbandry

Due to the strong growth in Chinese demand, Adisseo’s sales of liquid methionine have accelerated since the beginning of this year, and sales reached a record high in the third quarter.

Due to the African Swine Fever, China’s slaughter of live pigs has dropped sharply, and the demand for amino acids has also rapidly declined.

China is working to increase the production capacity of pigs and restore the pig industry, but it will take some time.

Based on our estimates, China's methionine demand in 2018 should be the world's largest, about 260,000 tons, and it may achieve double-digit growth in 2019, and this momentum will continue into 2020.

At the same time, demand in other regions is also very strong, which means that the growth rate of global methionine market demand in 2019 and 2020 will be higher than the usual 5-6%.

In 2018, the global equivalent consumption of methionine was about 1.

The global supply of methionine:EfK China Feed Industry Information Network-Based on feed, serving animal husbandry

Recent changes in production conditions and low inventory managementEfK China Feed Industry Information Network-Based on feed, serving animal husbandry

With the construction of two new factories in Asia, the global supply of methionine is currently excessive.

This year, plans to build a new plant in the United States for many years were cancelled.

In Asia, a methionine supplier decided to close a production line.

Any methionine manufacturer who wants to continue production in the future must have good inventory management and cost management.

Finally, we can expect that from a global perspective, due to poor market expectations for several consecutive quarters, the methionine inventory of some customers is abnormally low.

Market competition: extremely fierceEfK China Feed Industry Information Network-Based on feed, serving animal husbandry

The global price of methionine has fallen to a historical low, but has gradually stabilized recently.

In 2019, due to changes in the prices of raw materials (crude oil, methanol, energy, and sulfur), the production costs of most suppliers have fallen, but we believe that the prices of raw materials will not continue to fall in 2020.

　　Simply put, the market price of methionine is affected by the above-mentioned factors.

　　Adisseo is committed to enhancing its competitiveness through immediate short-term projects combined with long-term sustainable strategic projects, such as reducing logistics costs or improving the supply chain structure including process optimization, warehousing, and packaging to reduce costs and increase customers Satisfaction.