Global rise in Amino Acids prices is expected throughout the second quarter of 2024

As we move into the second quarter of 2024, the global market for various Amino Acids has seen a positive trend in prices, expected to continue in the near future. This increase has prompted producers in the feed sector to reconsider their purchasing strategies, while livestock farmers adjust their budgets accordingly. As a result, mainstream factories have continued to withhold reporting, with traders within the importing nations adjusting their quotes based on market trends, leading to gradual price increases in both the feed and food sectors.

Supporting this was further strengthening the position of corn as a feedstock for the Amino Acids processing industry, Xinghu Technology has announced plans to invest more than 3 billion RMB in constructing a new facility capable of processing approximately 600,000 tons of corn, alongside supporting cogeneration projects. This ambitious venture is designed to reshape the company's operations and enhance its competitiveness in the market, demonstrating the company’s commitment to innovation and sustainable growth. The investment reflects the company's proactive approach to modernization and efficiency improvement through the adoption of cogeneration technology, enabling simultaneous electricity and heat generation from the same fuel source. By constructing this new facility, the company aims to meet the growing demand for value-added corn products across various industries, aligning with its vision to diversify its product portfolio and solidify its position as a key player in the corn processing sector.

Xinghu Technology's expansion plans also have significant implications for the Amino Acids market. As a major player in the domestic Amino Acid industry, the company's investment in corn deep processing is expected to have a profound impact on the production and distribution of various Amino Acids. With the implementation of a soybean meal reduction policy in the country, demand for alternative feed additives, including Amino Acids, is increasing. The Firm’s expanded production capacity in Amino Acids is poised to meet this growing demand and capitalize on market opportunities. Moreover, the integration of cogeneration technology into the company's operations is anticipated to yield additional benefits for the Amino Acids market by optimizing energy efficiency and reducing production costs, thereby strengthening its market position and driving industry growth globally.

Overall, with a focus on enhancing production capacity, diversifying product offerings, and capitalizing on market trends, Xinghu Technology is positioned to reinforce its leadership in the upstream corn processing industry while exerting a significant influence on the Amino Acids market. Stakeholders can anticipate substantial developments as the company embarks on this transformative journey, shaping the future landscape of both industries.