I. Executive Summary

U.S.-Iran Tensions Escalate After Truce Expiry; Crude Oil Rises for Five Consecutive Days, Breaking USD 94/bbl. The 60-day window under the Islamabad Memorandum expired on August 18, with both sides only agreeing to an extension without specifics. On August 19–20, Trump threatened “unprecedented” economic isolation/economic warfare against Iran. On August 21, Brent futures settled at USD 94.39/bbl (WoW +6.63%), and WTI at USD 87.06/bbl (WoW +5.66%), High level since late July.

U.S. Antidumping Investigation on Chinese Choline Chloride Continues Following August 7 USITC Vote. The USITC voted 3:0 that there is reasonable indication that imports of Chinese choline chloride are materially injuring the U.S. industry; the Department of Commerce will continue the investigation. Estimated dumping margins are 73.39%–313.82%. The determination was published in the Federal Register on August 13. The EU had already issued its final ruling on December 19, 2025, imposing antidumping duties of 90.0%–115.9% on Chinese choline chloride.

The 28th Pet Fair Asia Opened in Shanghai on August 19–23. With a record exhibition area of 320,000 m² and 2,600+ exhibitors (20% international exhibitors from 32 countries), plus 130,000 trade visitors and 390,000 consumers. This year, a VIP trading day exclusively for invited participants will be launched. PET FAIR SUPPLY, the supply-chain exhibition, expanded to 70,000 m² with 900+ exhibitors. Demand for functional pet-food nutrition (L-carnitine, betaine, etc.) continues to grow.

VIV Select China 2026 Asia International Intensified Livestock Exhibition Held in Shanghai on August 19–21. Using five connected halls (H1-1, H1-2, H1-3, H2-4, H2-5) at the Shanghai World Expo Exhibition & Convention Center, with approximately 50,000 m² of exhibition space, 550 exhibitors from 20 countries and regions, and overseas visitor pre-registration covering 111 countries and regions (YoY +56%).

Fourth Round of Shrimp/Crab Feed Price Hikes in East China This Year. On August 10–12, Haida, Tongwei, Mingzhi, Dabeinong, and other feed companies raised shrimp/crab feed prices by CNY 300/t, bringing cumulative increases this year to as much as CNY 1,500/t. Despite falling fishmeal prices, feed prices did not drop due to procurement timing gaps, diversified cost pressures, and peak-season demand.

MTBE Pulls Back from Highs on Rising Supply. Domestic MTBE operating rates recovered from 45.87% at end-July to 54.97% in August as several Shandong units restarted. On August 14, the SunSirs reference price was CNY 6,610.60/t, down 8.19% from August 1.

Fishmeal Prices Fall Faster; Domestic Fishmeal Supply Increases. Peru’s north-central A-season officially ended on August 20 with a cumulative catch of 466,300 tonnes (24.36% of quota). Domestic Peruvian super-steamed fishmeal fell to CNY 22,100–22,200/t (down CNY 800–1,000 WoW), with port inventories at 136,400 tonnes.

Amazon Sports-Nutrition Data Confirms Surging GLP-1-Driven “Muscle Defense” Demand. SmartScout August data showed U.S. Amazon creatine annual sales at USD 720.8 million (YoY +90%), and protein-drink annual sales at USD 633 million (YoY +42%).

Fifth Dynamic Adjustment to Cosmetic New-Ingredient Catalogue; NMN and Three Others Graduate. On August 19, the NMPA added β-nicotinamide mononucleotide (NMN), bakuchiol, and two other new ingredients to Catalogue II of the Used Cosmetic Ingredients Catalogue. Companies may now use them within specified dosage limits without separate filing. From August 1–18, new cosmetic ingredient filings were zero, showing the impact of the new regulations.

Ecological Environment Code Took Effect on August 15; Feed Exemption for New Chemical Registration Removed. New feed-additive varieties now face a dual approval threshold from the Ministry of Agriculture and the Ministry of Ecology and Environment.

II. Category-by-Category News & Analysis

1. Betaine Series (Feed/Food/Cosmetic/Pharma/Agricultural Grades)

Market Dynamics: Running steady but soft. Feed demand is seasonally light during the high-temperature season. Aquafeed substitution urgency has marginally weakened as fishmeal prices fall; cosmetic/food-grade inquiries are stable. The Ecological Environment Code does not directly affect betaine with established safety history, but raises the bar for new variants.

Academic Research (New This Issue):

• Antioxidants (published online August 2026):Dietary betaine supplementation enhances hepatic antioxidant capacity and carbohydrate, lipid, and bile-acid metabolism in largemouth bass. Adding 1.0–8.0 g/kg betaine to high-cottonseed-concentrate-protein feed improved hepatic glycolipid metabolism and alleviated liver damage. [Newly cited in this issue, published August 2026]
• Frontiers in Psychiatry (August 19, 2026):Review proposes a “skeletal-muscle mitochondria–methylation–neurotransmitter interaction” model. Betaine, as a methyl donor and osmolyte, can promote creatine synthesis and enhance cellular hydration. Combined with Cordyceps and tyrosine, it may simultaneously target peripheral and central determinants of exercise performance for older adults, metabolic disorders, and healthy populations. [Newly cited in this issue, published August 2026]

Price Trend: Steady but soft.

2. Betaine Hydrochloride

Market Dynamics: Moving in line with anhydrous betaine; feed demand seasonally soft; export inquiries stable.

Price Trend: Flat, with producers negotiating shipments.

3. L-Carnitine

Market Dynamics: Remains firm. Industrial-grade and food-grade prices diverge significantly (food-grade roughly 2× industrial-grade; not interchangeable). Demand from sports nutrition, pet food, and pharma-grade segments supports food-grade strength. Anhui JinXuan’s 1,100 t/y cyanide-free route project (environmental impact assessment published in June) and Chengzda Pharma’s 3,561 t expansion (target completion by year-end) are proceeding. Industry competition is deepening across four dimensions: process technology, environmental compliance, integration, and pharmaceutical-registration certification. The 28th Pet Fair Asia opened this week (see Industry Events); functional pet-food nutrition demand continues to grow, expanding applications of L-carnitine in pet weight management, cardiac health, and exercise endurance.

Price Trend: Food-grade firm and stable; industrial-grade mainly stable.

4. Choline Chloride

Market Dynamics: Stable but soft, facing significant trade barriers. On August 18, mainstream Shandong market quotations for 50% choline chloride were CNY 4,300–4,400/t (trader circulation price). Raw-material trimethylamine at CNY 5,900–6,150/t and ethylene oxide at CNY 7,600/t provide no obvious upward cost push.

Trade-Barrier Developments (Major This Week):

• S. Antidumping:Filed by BCP Ingredients (New Jersey) on June 24; USITC hearing on July 15; on August 7 the USITC voted 3:0 that there is reasonable indication of material injury, and the Department of Commerce will continue the investigation. The determination was formally submitted on August 10 and published in the Federal Register on August 13. Covered products include choline chloride, choline bitartrate, and choline dihydrogen citrate (choline salt content ≥30%). Estimated dumping margins: 73.39%–313.82%.
• EU Final Ruling (Established Background):The EU final ruling on December 19, 2025 imposed duties of 115.9% on Shandong Aokete, 90.0% on Fengyin/Yinfeng, 94.9% on other cooperating enterprises, and 115.9% on all other companies; it is now in effect.

GB 7300.206-2025 will officially take effect on January 1, 2027, approximately 16 months away.

Price Trend: Stable but soft; export obstacles increase domestic supply pressure.

5. Creatine Monohydrate

Market Dynamics: Quotation ranges and product stratification remain unchanged. End-market sports-nutrition brand competition is intense. The GLP-1 drug-driven “muscle defense” concept continues to support creatine demand expectations (see Industry Events – Amazon data).

Academic Research (New This Issue):

• Journal of the International Society of Sports Nutrition (published online August 11, 2026):Chun J et al. In adults aged 45–65, creatine monohydrate supplementation (10 g/day for 12 weeks) increased fat-free mass by more than 1 kg and improved strength and cognitive function even without structured exercise. DOI: 10.1080/15502783.2026.2716273. [Newly cited in this issue, published August 2026]

Price Trend: Raw-material side stable to soft; end-market price war continues.

6. Sodium Sarcosinate

Market Dynamics: As an upstream intermediate for betaine and creatine monohydrate, it tracks downstream demand and runs steadily.

Price Trend: Flat.

IV. Industry Events of the Week

1. U.S. Antidumping Investigation on Chinese Choline Chloride Continues Following August 7 USITC Vote — Major Trade Event of the Week

On June 24, BCP Ingredients Inc. (New Jersey) petitioned the USITC and Department of Commerce, alleging Chinese choline chloride was sold below fair value and subsidized. The USITC held a hearing on July 15. On August 7, USITC Chairman Doyle and Commissioners Johanson and Kearns voted 3:0 that there is reasonable indication of material injury to the U.S. industry; the Department of Commerce will continue the investigation. The determination was formally submitted on August 10 and published in the Federal Register on August 13.

Covered products: choline chloride, choline bitartrate, and choline dihydrogen citrate (choline salt content ≥30%); excluded are choline hydroxide and choline salicylate. Estimated dumping margins are 73.39%–313.82% (depending on surrogate-country valuation). Investigation period: October 1, 2025 to March 31, 2026.

Background: The EU issued its final ruling on December 19, 2025, imposing antidumping duties of 90.0%–115.9% on Chinese choline chloride (Aokete 115.9%, Fengyin/Yinfeng 90.0%), without distinguishing feed and food grades.

Implications for the Company: If the U.S. final ruling imposes high antidumping duties, Chinese choline chloride exports will face dual barriers in Europe and the U.S., further increasing domestic supply pressure. Recommendations: ① assess the company’s U.S. export share and customer structure; ② monitor the Department of Commerce’s preliminary ruling timeline; ③ explore alternative markets in Southeast Asia, the Middle East, and South America; ④ watch whether choline bitartrate and other derivatives are included.

2. U.S.-Iran Tensions Escalate After Truce Expiry

The 60-day window under the Islamabad Memorandum expired on August 18, with only a technical agreement to extend but no details. On August 19–20, Trump threatened “unprecedented” economic isolation of Iran; Iran stated it was considering distributed strikes against U.S. economic interests such as the Yanbu oil pipeline in Saudi Arabia and the Fujairah terminal in the UAE. Strait of Hormuz traffic remained extremely low (only seven bulk-commodity vessels on August 21). Brent futures settled at USD 94.39/bbl on August 21 (WoW +6.63%).

Implications for the Company: High volatility in crude oil/MTBE is likely to continue, maintaining cost-side pressure on chemical products; assess whether Middle East shipping routes for exports are affected.

3. The 28th Pet Fair Asia Opened in Shanghai on August 19–23

Pet Fair Asia 2026 was held at the Shanghai New International Expo Centre, with record scale: 320,000 m² (17 indoor halls + 10 supply-chain halls), 2,600+ exhibitors (20% international exhibitors from 32 countries), 130,000 trade visitors and 390,000 consumers. This event has introduced VIP trading days that are only open to invited participants. PET FAIR SUPPLY expanded to 70,000 m² with 900+ exhibitors covering raw materials, OEM/ODM, packaging, and smart factories. New zones included EcoPaws Asia for sustainability and a small/exotic-pet zone (350+ brands).

Implications for the Company: Demand for functional pet-food nutrition continues to grow, expanding applications of L-carnitine (pet weight/cardiac health) and betaine (pet liver protection/osmotic regulation). Recommend reviewing Pet Fair Asia supply-chain leads and watching for cooperation opportunities with functional pet-nutrition brands.

4. Fourth Round of Shrimp/Crab Feed Price Hikes in East China This Year

On August 10–12, Haida, Tongwei, Mingzhi, Dabeinong, Aishengmu, and other feed companies collectively raised shrimp/crab feed prices by CNY 300/t, bringing cumulative increases this year to as much as CNY 1,500/t. Falling fishmeal prices did not translate into feed price cuts because of: ① procurement timing gaps (current production uses earlier high-priced raw-material inventory); ② diversified cost pressures (fish oil, functional ingredients, packaging, logistics); ③ fishmeel decline seen as short-term fluctuation; ④ peak-season rigid demand supporting price adjustments.

Implications for the Company: Aquafeed costs remain high, keeping open a window for cost-effective substitution promotion for betaine and choline chloride, though rising farming costs may compress additive purchasing budgets.

5. Fifth Dynamic Adjustment to Cosmetic New-Ingredient Catalogue; NMN and Three Others Graduate

On August 19, the NMPA issued the fifth dynamic adjustment to the Used Cosmetic Ingredients Catalogue, adding β-nicotinamide mononucleotide (NMN), bakuchiol, cetyl diglyceryl tris(trimethylsiloxy)silylethyl dimethicone, and azelaic acid monoamidopropyl dimethylamine—after three years of monitoring—to Catalogue II. Companies may now use them within specified dosage limits without separate new-ingredient filing. As of August 20, cumulative filings reached 512. From August 1–18, new cosmetic ingredient filings were zero, showing the impact of Announcement No. 59.

Implications for the Company: The “graduation” pathway for new ingredients is becoming normalized, further opening the compliance window for cosmetic raw-material innovation. Existing products such as cosmetic-grade betaine and sodium sarcosinate are not directly affected, but watch downstream customers’ substitution demand for new ingredients.

6. Peru A-Season Anchovy Fishery Officially Ended on August 20

Peru’s Ministry of Production announced via Resolution No. 00285-2026-Produce that the A-season would officially end at midnight on August 20. Cumulative catch was 466,285 t (quota 1.91 million t, completion rate 24.36%). The Peruvian market has virtually no salable inventory; super-steamed fishmeal pre-sale reference price is CNF USD 3,700/t. Domestic imported fishmeal fell faster to CNY 22,100–22,200/t, while domestic fishmeal supply increased.

Implications for the Company: Short-term fishmeal price declines marginally reduce the urgency of betaine/choline chloride substitution promotion, but Peru’s tight supply structure has not fundamentally changed. If the EUREKA resource assessment does not support reopening, high foreign prices will persist and the substitution logic remains valid over the medium-to-long term.

7. Amazon Data: GLP-1 Drugs Reshape Sports-Nutrition Consumption

SmartScout August data showed: creatine annual sales USD 720.8 million (YoY +90%), monthly search volume 620,700, the only category growing across all tracked windows; protein-drink annual sales USD 633 million (YoY +42%); protein bars declined. GLP-1 users experience 30%–50% appetite reduction; liquid protein, Greek yogurt (+215%), and cottage cheese (+291%) grew significantly.

Implications for the Company: The GLP-1 muscle-protection narrative continues to strengthen. Recommend incorporating creatine and protein-drink “muscle defense” positioning into export marketing materials.