eFeedLink - China Lysine Weekly: Prices consolidate lower (week ended Jul 8, 2019)

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July 8, 2019

China Lysine Weekly: Prices consolidate lower (week ended Jul 8, 2019)

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Price summary

Prices were mostly unchanged.

Price quotes of 98.5-percent lysine dropped the range of RMB7.20-7.40/kg. The average price of lysine plummeted RMB0.23/kg to RMB7.25/kg.

Price quotes of 70-percent lysine slid to the range of RMB4.20-4.50/kg.

For imported 98.5-percent lysine, transacted prices softened to RMB9-9.70/kg.

Provinces	City/Municipality	Price as of Jul 8 (RMB/kg)	Price as of Jul 1 (RMB/kg)	Price change (RMB/kg)
Guangdong	Guangzhou	7.20	7.20	0.00
Sichuan	Chengdu	7.20	7.20	0.00
Shandong	Jinan	7.40	7.40	0.00
Henan	Zhengzhou	7.30	7.30	0.00
Liaoning	Shenyang	7.10	8.50	-1.40
-	Beijing	7.30	7.30	0.00
-	Average	7.25	7.48	-0.23

Weekly prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Jul 8 (RMB/kg)	Price as of Jul 1 (RMB/kg)	Price change (RMB/kg)
Guangdong	Guangzhou	9.30	9.30	0.00
Sichuan	Chengdu	9.10	9.10	0.00
Shandong	Jinan	9.60	9.60	0.00
Henan	Zhengzhou	9.70	9.70	0.00
Liaoning	Shenyang	9.00	10.40	-1.40
-	Beijing	9.45	9.45	0.00
-	Average	9.36	9.59	-0.23
Prices are for reference only. RMB1=US$0.1457 (Jul 8)

Market analysis

Sales of lysine continued to remain flat with hog feed consumption sluggish. Lysine producers who stood firm and held price quotes above RMB10/kg were compelled to slash prices prominently to stay competitive in the market.

In Europe, price quotes were unchanged at EUR1.20/kg.

Market forecast

Lysine market will remain under pressure with supplies ample and hog feed production limited. However, with the costs of production high, lysine producers will be cautious in negotiating prices.