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November 1, 2016

China Methionine Weekly: Prices remain soft amid ample supply (week ended Oct 31, 2016)

An eFeedLink Exclusive
  

Price summary

Prices moved lower.
 
Price quotes of imported dl-methionine slid to the range of RMB24.20-25/kg, lower by RMB0.50-0.70/kg.

For liquid methionine*, price quotes were stable at RMB20.50-21/kg.
 

Weekly prices of dl-methionine in China

Area

Oct 18 - Oct 24
(RMB/kg)

Oct 18 - Oct 31
(RMB/kg)

Price change
(RMB/kg)

Guangzhou

25.00

25.00

0.00

Chengdu

25.00

25.00

0.00

Jinan

24.80

24.20

-0.60

Nanjing

25.20

24.50

-0.70

Shijiazhuang

25.00

24.50

-0.50

Zhengzhou

24.80

24.20

-0.60

Shenyang

25.00

24.50

-0.50

Beijing

25.00

24.50

-0.50

 

Weekly transacted prices of liquid methionine* in China

Area

Oct 18 - Oct 24
(RMB/kg)

Oct 18 - Oct 31
(RMB/kg)

Price change
(RMB/kg)

North

20.50

20.50

0.00

Central

20.50

20.50

0.00

South

21.00

21.00

0.00

Prices refer to delivered-to-feedmill prices, and are for reference only.
RMB1=US$0.1476 (Nov 1) 


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

Market analysis

Feed millers withheld purchases while the broiler markets remained weak, hence decimating the sales of poultry feed. As September methionine imports were ample, distributors held down prices in efforts to clear stocks even though the recent depreciation of renminbi has pushed up the import costs of the product.

During September, China imported 14,987 tonnes of methionine, 3.69% higher than in August. Export dropped 7.40% to 1,837 tonnes.

In Europe, prices of methionine for Q4 deliveries stayed at EUR2.65-2.70/kg.
 

Market forecast

As China is still dependant on import for methionine, the depreciation of renminbi will hold up prices in the domestic market in the longer term. Once methionine importers have cleared excess stocks, prices of methionine should stabilise or move higher due to increased import costs.

However, with the capacity of methionine industry greatly expanded over the past several years, the upward scope of the market will be limited as producers fight for market shares.
 

 


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