eFeedLink - China Lysine Weekly: Producers stand firm (week ended Oct 28, 2019)

Market Reports

October 29, 2019

China Lysine Weekly: Producers stand firm (week ended Oct 28, 2019)

An eFeedLink Exclusive

Price summary

Prices were stable to higher.

Price quotes of 98.5-percent lysine remained in the range of RMB6.50-7.40/kg. The average price of lysine increased to RMB6.95/kg.

Price quotes of 70-percent lysine were unchanged in the range of RMB4.20-4.50/kg.

For imported 98.5-percent lysine, transacted prices were at RMB8.40-9.60/kg.

Weekly transacted prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Oct 28 (RMB/kg)	Price as of Oct 21 (RMB/kg)	Price change (RMB/kg)
Guangdong	Guangzhou	6.70	6.70	0.00
Sichuan	Chengdu	6.50	6.50	0.00
Shandong	Jinan	7.40	7.40	0.00
Henan	Zhengzhou	7.00	7.00	0.00
Liaoning	Shenyang	6.80	6.50	0.30
-	Beijing	7.30	7.30	0.00
-	Average	6.95	6.90	0.05

Weekly prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Oct 28 (RMB/kg)	Price as of Oct 21 (RMB/kg)	Price change (RMB/kg)
Guangdong	Guangzhou	8.80	8.80	0.00
Sichuan	Chengdu	8.40	8.40	0.00
Shandong	Jinan	9.60	9.60	0.00
Henan	Zhengzhou	9.40	9.40	0.00
Liaoning	Shenyang	8.70	8.40	0.30
-	Beijing	9.45	9.45	0.00
-	Average	9.05	9.01	0.05
Prices are for reference only. RMB1=US$0.1417 (Oct 29)

Market analysis

Lysine producers were tempted to lift prices as the costs of production increased lately. However, sales of lysine stayed soft while hog feed producers limited output, hence limiting the upward scope of the market.

In Europe, price quotes remained at EUR1.20/kg.

Market forecast

Although hog producers are more confident to stock feed as the profit margins stayed at record levels, overall sales of hog feed remained limited due to low animal population. As a result, lysine prices are less likely to rise tremendously despite improved buying interest.