July 31, 2013
 
China Lysine Weekly: Weak trends prevail (week ended Jul 30, 2013)
 
An eFeedLink Exclusive
 

Price summary
 
More price falls.
 
Price quotes of 98.5-percent lysine reduced to RMB9.80-10.15/kg. Average transacted price fell by RMB0.29/kg to RMB9.99/kg.
 
Price quotes of 65-percent lysine and 70-percent lysine were at RMB5-5.20/kg and RMB5.70-5.80/kg respectively.
 
As for imported 98.5-percent lysine, transacted prices dropped to RMB11.70-11.90/kg.
 

Weekly transacted prices of imported lysine in China (RMB/kg)

Provinces

City/Municipality

Price as of Jul 30
(RMB/kg)

Price as of Jul 23
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

10.15

10.30

-0.15

Shandong

Jinan

10.10

10.40

-0.30

Sichuan

Chengdu

9.90

10.10

-0.20

Henan

Zhengzhou 

9.80

10.20

-0.40

Liaoning

Shenyang

10.10

10.35

-0.25

-

Beijing

9.90

10.35

-0.45

-

Average

9.99

10.28

-0.29

 

Weekly prices of imported lysine in China (RMB/kg)

Provinces

City/Municipality

Price as of Jul 30
(RMB/kg)

Price as of Jul 23
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

11.70

12.15

-0.45

Shandong

Jinan

11.85

12.25

-0.40

Sichuan

Chengdu

11.75

12.10

-0.35

Henan

Zhengzhou 

11.85

12.15

-0.30

Liaoning

Shenyang

11.90

12.10

-0.20

-

Beijing

11.80

12.10

-0.30

-

Average

11.81

12.14

-0.33

Prices are for reference only.
RMB1=US$0.1631 ( Jul 31)

 
 
Market analysis
 
Even though several producers have halted operation for routine maintenance purposes while other reduced output to ease inventory pressure, lysine market showed no signs of strengthening with supplies in excess. Demand continued to stay low while feed millers held back purchases in anticipation of lower prices with soymeal market staying on weak trends.
 
In Europe, transacted prices remained at EUR1.33-1.37/kg for Q3 deliveries. Prices quotes for Q4 deliveries stayed in the range of EUR1.37-1.40/kg.
 
 
Market forecast

In the near term, ample availability of lysine will continue to exert pressure on the market in conjunction with slack demand. However, buyers are likely to stockpile inventories with prices falling below RMB10/kg in several regions, amid concerns that a rebound is likely in the coming period.
 

 

 


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