The Problem of Threonine Overcapacity Would be More Serious in the Next Several Years

By CnAgri2017-08-23 09:52:58 Print Threonine is one of necessities for animals, and the global demand of threonine for feed has maintained the annual average growth at more 10% in the last five years, and reached to half million MT in 2016. However, 2016 global threorine capacity reached 1 million MT, seeing an overcapacity. China is a country whose capacity is highest in the world. 2016 capacity was upward of 0.7 million MT, accounting for 70% of the global total, which results in high dependent of Chinese threorine producers on international market. 2016 China’s threorine output reached 0.38 million MT, and the average operating rate only was 54%; of which nearly 70% of the output was used for exporting, and only 0.15 million MT was for domestic consumption.  
 
Favored by the policies, corn de-stocking and a fall in corn costs, many corn further processing companies planned to expand capacity in 2017, and threorine becomes one of products invested by the companies. By the end of 2018, threorine capacity would have increased by 0.4-0.5 million MT, and only Meihua Biology planned to increase by 0.3 million MT of threorine capacity within the next six years. Namely, by 2018, China’s threorine capacity would have reached 1.1-1.2 million MT, and global capacity would have increased to 1.4-1.5 million MT.       
 
Calculated the annual average growth at 10%, 2018 global threonine demand would increase 0.1 million MT to 0.6 million MT. Even if all of the demand is produced by Chinese companies, the average operating rate of threonine industry will decrease greatly to 40%, seeing more serious capacity, so the competition between domestic and foreign market also will be more fierce.   

Table1, 2017 Newly Added Amino Acid Capacity Projects in the Northeast

Company	Corn Processing Capacity	Lysine	Threonine	Other Amino Acid	Starch Sugar	Construction Cycle
Fufeng(First-stage)	150	10	10		20	2017-2018
EPPEN	90	30	10			2017-2018
Wanli Runda	150	20	10	1.2		2017-2018
Xiangyu Group	150					2017-2018
Dongyu Group	100	20	10		10	2017-2018
Meihua Group	300	40	30	34	50	2017-2022
Total	940	120	70	35.2	80

Source: BOABC database