TRADE TIDES 78 FEED & ADDITIVE MAGAZINE October 2025 In August 2025, China's exports remained largely subdued, however, Vitamin E shipments soared to a record 11,000 metric tons, the highest monthly volume ever recorded. The critical China-to-U.S. trade route for Vitamin E rebounded sharply after seven months of very low activity, reducing the year-todate shortfall compared to 2024 to a -48% decline, or 8,500 metric tons, driven by Shandong, Zhejiang and Hubei provinces (Figure 2). The European Union has approved Vitamin B2 from Chifeng, Chromium DL-Methionine from Zinpro, L-Arginine from CJ, and several other feed additives for market entry. Multiple companies announced upgrades to their production projects, including Brother, Garden, Tatneft, Golden Corn, Furui Biopharm, and others. Meanwhile, methionine producer Unisplendour is reportedly undergoing asset restructuring to shift its control and governance structure. CURRENCY RATES IN SPOTLIGHT Over recent months, significant fluctuations in key trade currencies for feed and other raw materials have impacted global markets. The USD Index, which tracks the U.S. dollar against a basket of major currencies, has fallen approximately -10% yearto-date in 2025, lingering at weaker levels comparable to those observed in February 2022. In mid-September 2025, the Federal Reserve executed a moderate 25-basis-point interest rate cut, navigating softening labor markets and cooling inflation while resisting political demands for more aggressive action for now. The European Central Bank is anticipated adopting a cautious approach to further rate reductions, constrained by ongoing inflationary pressures. China's monetary policy currently shows no signs of significant interventions or Yuan devaluation despite its economic woes. The EUR/USD currency pair climbed to a range of 1.17–1.19, reflecting a weaker U.S. dollar and a +15% year-to-date gain, while the USD/CNY pair hovered around 7.10, down a few percentage points from the start of 2025 with some banks expecting a range of 7.00-7.08 near-term. A depreciating U.S. dollar increases the cost of feed additive imports from major suppliers like China and Europe when priced in USD. In Europe, a euro that has strengthened by over +10% year-todate against both the dollar and Chinese yuan makes imports more affordable, but this puts European brands at a disadvantage as China's USD-denominated export prices translate to lower euro values. European producers and exporters are somewhat grappling with foreign exchange challenges due to misaligned revenue and cost structures. DSM-FIRMENICH ANH DEAL UPDATE dsm-firmenich’s Animal Health & Nutrition (ANH) divestiture announcement is now expected in Q4, from October onwards, following extended and complex due diligence but still broadly in line with the H2 timeline. Finalizing the ANH carveout is an awaited milestone, providing clarity for both the remaining group and the divested ANH business for investors, employees and sector participants alike. Meanwhile, August and September sales reportedly softened, driven by cautious inventory management by U.S. multinationals and FX headwinds that could impact Q3 by EUR 30 million or more, while key vitamin prices continued to decline. Growth in Taste, Texture & Health (TTH) is being supported by revenue synergies, alongside new capacity invest4’000 3’500 3’000 2’500 2’000 1’500 1’000 500 0 2022 -1 Metric tons Vitamin E: Monthly export quantity to U.S. by province 2023 -1 2024 -1 Zhejiang Shandong Hubei Jilin Jiangsu Other 2025 -1 2025 -8 Figure 2
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