In the last couple of years, the expansion in the fine chemicals glycine enterprises is fast. But if only they pay attention to sell rather than quality and brand promotion, the amino acid market will get an imbalance situation.

Amino acid is a fine chemical product widely used in the production of pharmaceuticals, pesticides, food additives, feed additives, foliar fertilizer, such as its use for the synthesis of herbicides - glyphosate. Glyphosate is a highland of the fine chemical suppliers to compete, thereby stimulating the glycine gone up.

Chinese glyphosate actual production is estimated to reach at least 150,000 tons, the end of 2012, is likely to be exceeded 200,000 tons, this growth rate is bound to result in amino acid crazy horse. At present, the industrial products of the amino acid from a year earlier, per ton, 14,000 RMB, rose to $ 1.9 million in the current food grade has risen to 16,000 RMB per ton from the current 22,000 million. Under such circumstances, will inevitably lead to the expansion of the old factory, new factory launched, increasing the pressure on the market.

In fact, the amino acid industry is already facing a bottleneck of the upstream raw material prices. Chloroacetic acid as the amino acid of raw materials to produce fine chemicals supplier, its main raw materials rose sharply. Rose to 8,000 RMB per tonne of acetic acid from the same period last year more than 4000 RMB; liquid chlorine rose to 3000 RMB per ton from 1,000 RMB; per ton of methanol has risen to a rare $ 2600. Substantial price increases have made some of the amino acid enterprises and off. Hydroxy-acetonitrile production enterprise of amino acid by the upstream oil product prices, the cost of excessive pressure, short period of time does not appear a major change.

At present, the fine chemicals suppliers of Shandong, Shanghai, Beijing, Jiangsu and other places in China all have expansion of the amino acid and lead salicylate.The companies with the scale of thousands of tons and with no brand are increasing their production capacity. The true competitiveness of the amino acid is not entirely in production capacity, but the product quality as well as how to improve the food grade and pharmaceutical grade finishing. Currently, most of the glycine manufacturers stay in the level of industrial-grade. They do not obtain medical certifications, but only stay on the primary stage.Source: