Oct 17, 2003

Lysine Prices in China Shot Up Sharply Friday; Re-Emergence of Price Upsurge Seen in The 1997 Lysine Market

An eFeedLink Exclusive Report

Lysine prices in China shot up by an extremely big margin on Friday, October 17, 2003. Current quotations for imported lysine ranged between the level of RMB38.0-40.0/kg, while quotations for some areas have reached above RMB40.0/kg. Meanwhile, transacted prices in most regions of China were over RMB35.0/kg, which was a re-emergence of the price upsurge seen in the 1997 lysine market. The present lysine market in China is full of market speculation and price manipulation by market participants.

Transacted prices in different regions of China were recorded as follows:

• Transacted prices in Liaoning area were in the range of RMB36-38/kg;
   
• Transacted prices in Hebei area maintained at the level of RMB38/kg;
   
• Transacted prices in Guangdong area hovered at around RMB38-40/kg;
   
• Transacted prices in Shanghai area averaged at RMB36/kg;
   
• Transacted prices in Henan stayed at the level of RMB38/kg;
   
• Transacted prices in Sichuan ranged between RMB36-38/kg.

Looking at the overall lysine market situation in China, despite the impressive price surges, transacted volume was extremely small, owing to the extremely high price level. Many feed millers were held back by the ongoing upward price movements.