August 8, 2003
China Methionine Market Weekly Report - Market May Be In A Stalemate Position (August 8, 2003)
An eFeedLink Exclusive Report
For the week ended August 8, market prices of methionine throughout China were mostly stable.
In seven major regions, most of the transactions for powder methionine were still ranging from RMB 24.0-24.2 / kg (delivered to feed mill price), unchanged from last week.
For big deals, prices remained unchanged at around RMB 23.8 /kg but compared to last week, the number of transactions at this price has become relatively fewer.
Offers for liquid methionine were ranging from RMB 20.5-21.0 /kg. There was also no change in market prices of liquid methionine from the previous week. Most of the transactions remained within the range of RMB 20.2-20.5 /kg.
There has not been any downward pressure on prices since the recent disposal of methionine at a low RMB 23.8 /kg by some of the bigger traders.
Evidently, market prices have stabilized since that effort by the big traders to reduce their inventories.
Currently, none of the major producers have revised their selling prices lower. USD offers were still quoted above US$2.35 /kg. The perseverance by the producers to maintain prices at a certain level have a stabilizing effect on the market and had helped to avert a sustained fall in prices.
This month, demand for methionine is seen rising higher compared to the preceding months. But it is likely to fall significantly below the figures for August last year.
Market participants said that the number of transactions has been dwindling as buyers continued to stay away from the market. They added that methionine prices have been moving within the same price range for more than two weeks. Most of them feel that prices are unlikely to recover anytime soon.
As the China methionine market is totally dependent on imports, producers may exert a certain influence on the direction of market prices through their sales strategies and market objectives. Industry sources said that a major producer will soon unveil its latest selling price, and this might be the catalyst to some market activity.