# Oversupply and environmental concerns major risks for China's amino acid manufacturers

> CCM market intelligence says Chinese amino acid makers are shifting toward minor amino acids such as valine, isoleucine and glutamine for healthcare and pharma uses, which earn higher margins than bulk products like glycine and taurine. Feed still accounts for the largest share of the market due to demand from poultry and livestock. CCM warns that continued capacity expansion could lead to oversupply, adding pressure from environmental rules.

- Date: 2017-10-17 · published 2017-10-17T12:00:00.000Z
- Category: market · region China · magnitude low
- Page: https://feedsoft.ai/events/68787-oversupply-and-environmental-concerns-major-risks-for-china-s-amino-acid
- Commodities: [Lysine](https://feedsoft.ai/c/LYSINE.md), [Methionine](https://feedsoft.ai/c/METH.md)

## Why it matters

Overcapacity in Chinese amino acids could push down prices of feed-grade amino acids such as lysine and methionine, benefiting feed compounders, while environmental curbs could tighten supply and reverse that effect.

## Read by commodity

- METH: neutral
- LYSINE: bearish ▼

## Sources

- nutraingredients.com: https://www.nutraingredients.com/Article/2017/10/17/Oversupply-and-environmental-concerns-major-risks-for-China-s-amino-acid-manufacturers/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.