June 21, 2004

China's Lysine Producer BBCA Group Reportedly Ordered to Halt Production

An eFeedLink Exclusive Report
 

China Central Television Station has on Sunday, June 20 reported that several Chinese enterprises, which polluted a tributary of Huai River, were ordered to halt production by China Environment Department. BBCA Group's (Feng Yuan) lysine production plant is one of the enterprises being penalized.

Distributors and resellers across China have adjusted upward their lysine offer prices, with some even stopped issuing price quotes, when business started on Monday, June 21. 
                  

Current quotations for imported lysine ranged between RMB21.0-22.0/kg, while those for locally produced averaged between RMB20.0-22.0/kg.

Buoyed by this unexpected development, offer prices for lysine in the Chinese market have generally moved higher. Although the requisition for price quotes has increased significantly on Monday, actual transaction remained mostly unchanged, with transacted prices not yet showing any evident increases so far.