August 1, 2003
China Methionine Market Report - Methionine Prices in China Stabilized (August 1, 2003)
An eFeedLink Exclusive Report
During the week ended August 1, methionine prices in China remained relatively unchanged with minimal price movements in most parts of China.
Current market prices of powder methionine stayed at around the level of RMB 24.5 /kg.
In seven major regions, average transacted prices of powder methionine (delivered to feed mill) were at around RMB 24.0-24.2 / kg, with transacted prices of larger volumes remaining at around RMB 23.8 /kg. With the exception in Guangzhou, Chengdu and Changsha areas, where prices fell by RMB 0.1 /kg, prices in other regions remained largely unchanged.
Market prices of liquid methionine fell by around RMB 0.3 /kg over last week's, to around RMB 20.2-20.3 /kg, currently. Under the pressure of continually weaken market prices of powder methionine, traders for liquid methionine had little choice but to adjust their prices downwards, hence the slight fall in prices of the latter during the week.
Market prices of powder methionine stabilized somewhat after several weeks of continuous fall, due largely to a rise in market demand. Compared to the same period last year, although the volume of current market demand is not as large, there are indications that it will continue to increase, thereby providing some support for market prices of powder methionine.
The recent continuous fall in market prices of powder methionine, from RMB 24.8 /kg to the current level of RMB 24.0 /kg, has caused losses to those traders who secured their stocks at higher prices several months ago. Even those who have bought at lower prices after they have dipped enjoyed very thin profit margins in the current market situation. Hence, market participants felt there is little room left for market prices to dip further.
Current market prices of methionine in Europe remained relatively stable. Although USD denominated port prices in China slipped somewhat, they continued to stay at relatively high levels as producers are not adjusting prices downward. Current offer prices quoted by two major methionine producers are in the range of US$2.35-2.38 /kg. When converted to RMB, these offer prices are still higher than RMB 24.0 /kg, which are slightly above China's current market price levels.
Barring unforeseen circumstances, there is little likelihood of any further significant drop in prices of methionine in China. In the near term, market participants expect prices of methionine in China to remain stable, with minimal price fluctuation.