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China is one of the major production countries of glycine in the world, and four grades of glycine are produced here, namely tech-grade, food-grade, feed-grade and pharmaceutical-grade.
Commercial production of glycine by the chloroacetic acid ammonolysis process hadn't been started until the late 1970s, and this pathway was accessible and the requirement for facilities was relatively low. Almost all Chinese glycine producers adopt chloroacetic acid ammonolysis process, which is a backward technology now. Guang'an Chengyang Bio-tech Co., Ltd. (Guang'an Chengyang), whose glycine production lines were built up in Nov. 2015, is the only company in China adopting the Hydantion process.
Both the capacity and output of glycine in China kept increasing during 2012-2019, along with the fast development of glyphosate (glycine's key end use segment) in China. Output of the tech, food and pharmaceutical-grade glycine increased, while that of feed-grade glycine witnessed a small decline in 2019.
The national capacity of tech-grade glycine also saw increase during 2012-2019. However, China's glycine industry has always witnessed overcapacity in the past few years, and this situation will not change much in the coming few years though some glycine producers may shift their glycine installations to produce other amino acids.
Hebei Donghua Chemical Group (Hebei Donghua) has kept being the top glycine producer in China and even in Asia. After its first phase of the 60,000 t/a tech-grade glycine project completed in July 2018, its tech-grade glycine capacity reached 220,000 t/a in 2019, and it still has a 30,000 t/a tech-grade glycine expansion plan. China's glycine production is highly concentrated, while its upstream industries including both chloroacetic acid and urotropine are not.
Some glyphosate producers have built up or planned to construct glycine production lines for their glyphosate technical production.
- Hubei Trisun Chemical Co., Ltd. (Hubei Trisun)'s 100,000 t/a glycine is firstly supplied to itself, and the rest sold to others.
- Sichuan Leshan Fuhua Tongda Agro-chemical Technology Co., Ltd. (Fuhua Tongda)'s 40,000 t/a glycine is mainly consumed by itself.
- Inner Mongolia Xingfa Technology Co., Ltd. (Inner Mongolia Xingfa)'s 10,000 t/a glycine is consumed by itself.
- Henan HDF Chemical Co., Ltd. (Henan HDF)'s 15,000 t/a glycine is mainly consumed by itself.
The price of glycine is closely linked with that of glyphosate (high-positive correlation), because of glycine's limited consumption fields and simple production technology. In 2019, the price stayed low, because of stable demand and output of glycine and decreasing price of glyphosate technical. Affected by the COVID-19, the demand for glycine and glyphosate decreased, thus the price of glycine maintained at a low level till May 2020.
China's total export volume of glycine increased on the whole in 2012-2019. China started to export tech-grade glycine in 2018, whose export volumer accounted for 6.7% of total export volume. In 2019, the export volume of tech-grade glycine increased greatly to 4,898 tonnes, which took up 8.7% to the whole.
Food-grade glycine is the main product in China's glycine export, with its export volume accounting for 87.9%, 79.5% and 78.8% of the total glycine export volume during 2017-2019 respectively.
Quite different from the overseas consumption structure, the largest end-use segment of glycine in China is glyphosate. In 2019, around 79.9% of tech-grade glycine was applied in the domestic glyphosate industry, and the rest was consumed to produce food-, feed- and pharmaceutical-grade glycine.-
The consumption of food, feed and pharmaceutical-grade glycine all increased from 2012 to 2019. The consumption of food-grade glycine has grown at a CAGR of 3.6% during 2012-2019, the consumption of feed-grade glycine at a CAGR of 5.0% and the consumption of pharmaceutical-grade glycine at a CAGR of 4.1%.
China's glycine industry tends to develop stably in the coming five years (2020-2024), along with the promotion of GM crops especially GM soybean and corn, and sustained demand for glyphosate.
Objectives of this report are to present an in-depth and comprehensive view of Chinese glycine market. CCM's goal of this research is to determine the current status of Chinese glycine industry and assess its growth potential from 2020 to 2024. Having accumulated profound understanding on industrial chains of glyphosate, the most important downstream industry of glycine, CCM will present an insight into glycine market and future trends, together with its industry structure, including upstream products, applications. A review of glycine's competitiveness is also provided in the report.
The report is based on data sourced by diverse methods. The data collected and compiled was variously sourced from telephone interviews, published magazines, journals, government statistics and CCM's database, etc. Data obtained from various sources have been combined and cross-checked to ensure that this report is as accurate and methodologically sound as possible.
The key market players in glycine industry are profiled in details. Key market participants studied include Hebei Donghua, Yichang Jinxin, Fuhua Tongda, and Linyi Hongtai.
Scope of the report
Time: 2012-May 2020, primarily 2012 to 2019
Aspects: production, export, price, consumption