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October 18, 2016

China Methionine Weekly: Prices tumble to three year lows amid excess supply (week ended Oct 17, 2016)

An eFeedLink Exclusive
 
     
Price summary

Prominent dip in prices.
 
Price quotes of imported dl-methionine slid to the range of RMB24.80-26/kg, lower by RMB0.50-1.20/kg.

For liquid methionine*, price quotes dropped significantly at RMB20.50-21/kg.
 

Weekly prices of dl-methionine in China

Area

Oct 1 - Oct 10
(RMB/kg)

Oct 11 - Oct 17
(RMB/kg)

Price change
(RMB/kg)

Guangzhou

26.50

25.50

-1.00

Chengdu

26.50

26.00

-0.50

Jinan

25.80

25.20

-0.60

Nanjing

26.00

25.30

-0.70

Shijiazhuang

26.00

25.50

-0.50

Zhengzhou

26.00

24.80

-1.20

Shenyang

26.00

25.20

-0.80

Beijing

26.00

25.50

-0.50

 

Weekly transacted prices of liquid methionine* in China

Area

Oct 1 - Oct 10
(RMB/kg)

Oct 11 - Oct 17
(RMB/kg)

Price change
(RMB/kg)

North

23.50

20.50

-3.50

Central

22.50

20.50

-2.00

South

21.00

21.00

0.00

Prices refer to delivered-to-feedmill prices, and are for reference only.
RMB1=US$0.1464 (Oct 18) 

 
*Commonly referred to in China as liquid methionine is methionine hydroxyl analogue, a liquid source of supplemental methionine.
 
 
Market analysis

Sales of methionine were poor as feed millers refused to increase stockpiles while the poultry markets. Distributors and traders slashed prices to three-year low levels in efforts to entice buyers but in vain.

Meanwhile, CJ has announced that it would cut its supplies to China by 50% starting October.

Evonik will be holding a ground breaking ceremony for its second methionine production plant in Singapore, with a projected annual production capacity of 150,000 tonnes, on October 19.

In Europe, prices of methionine for Q4 deliveries were lower at EUR2.75-2.88/kg. Price quotes for Chinese products were at EUR2.72/kg.
 

Market forecast

Despite CJ's import cut to China, the availability of methionine will remain plentiful with domestic production on the rise and supplies from southeast Asia sufficient. The market will continue to be under pressure while poultry feed demand remains sluggish although sharp price cuts are less likely following the recent plunge.
 

 


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