September 23, 2003
Continual Upswing Seen in China's Lysine Prices
An eFeedLink Exclusive Report
Lysine market in China on Monday and Tuesday this week is buzzed with activity, with prices rising to a great extent. Current transacted prices for imported lysine ranged between RMB26-28/kg, while transacted prices in Chengdu city of Sichuan province hitting a high of RMB30/kg. This is beyond most market participants' imagination.
Prices for locally produced lysine has reached the same price level of imported lysine's, with transacted prices hovered at around RMB25-26/kg.
Despite the soaring prices, there were active purchasing activity due to severe tightness in supply. As many feed millers are having difficulty in filling their requirements, they are willing to buy at the asking prices when there is supply available. However, volume of each transaction remained relatively small; a 10-ton transaction is considered a big deal.
Currently, the lysine output by Changchun's Da Cheng still have not resumed its normal level, with only small production to fulfill outstanding contracts. As a result, Da Cheng's production does not relieve the supply tightness in the market.
