eFeedLink - China Lysine Weekly: Lacklustre demand holds prices flat (week ended Nov 4, 2019)

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November 6, 2019

China Lysine Weekly: Lacklustre demand holds prices flat (week ended Nov 4, 2019)

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Price summary

Prices were mostly unchanged.

Price quotes of 98.5-percent lysine stayed 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 in the range of RMB4.20-4.50/kg.

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

Weekly transacted prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Nov 6 (RMB/kg)	Price as of Oct 28 (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	6.80	7.00	-0.20
Liaoning	Shenyang	6.80	6.80	0.00
-	Beijing	7.30	7.30	0.00
-	Average	6.92	6.95	-0.03

Weekly prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Nov 6 (RMB/kg)	Price as of Oct 28 (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	9.20	9.40	-0.20
Liaoning	Shenyang	8.70	8.70	0.00
-	Beijing	9.45	9.45	0.00
-	Average	9.03	9.06	-0.03
Prices are for reference only. RMB1=US$0.1417 (Nov 6)

Market analysis

Lysine market showed little improvement as usages remained low due to poor hog feed demand. Although producers cut production considerably, prices were unable to move higher amid unusually slack sales.

In Europe, price quotes were flat at EUR1.20/kg.

Market forecast

With export demand flat and domestic sales decimated by dwindling hog feed consumption, lysine market is poised to remain weak. Smaller producers and traders who are eager to clear stocks are likely to cut prices, albeit modestly.