eFeedLink - China Lysine Weekly: Market remains stable on stable sales (week ended Nov 25, 2019)

November 26, 2019

China Lysine Weekly: Market remains stable on stable sales (week ended Nov 25, 2019)

An eFeedLink Exclusive

Price summary

Prices were mostly stable.

Price quotes of 98.5-percent lysine were in to the range of RMB6.70-7.40/kg. The average price of lysine decreased RMB0.15/kg to RMB7.05/kg.

Price quotes of 70-percent lysine consolidated in the range of RMB4.30-4.50/kg.

For imported 98.5-percent lysine, transacted prices were at RMB8.70-9.60/kg.

Weekly transacted prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Nov 25 (RMB/kg)	Price as of Nov 18 (RMB/kg)	Price change (RMB/kg)
Guangdong	Guangzhou	6.70	6.70	0.00
Sichuan	Chengdu	6.80	7.80	-1.00
Shandong	Jinan	7.40	7.40	0.00
Henan	Zhengzhou	7.20	7.20	0.00
Liaoning	Shenyang	6.90	6.80	0.10
-	Beijing	7.30	7.30	0.00
-	Average	7.05	7.20	-0.15

Weekly prices of imported lysine in China (RMB/kg)
Provinces	City/Municipality	Price as of Nov 25 (RMB/kg)	Price as of Nov 18 (RMB/kg)	Price change (RMB/kg)
Guangdong	Guangzhou	8.80	8.80	0.00
Sichuan	Chengdu	8.70	9.70	-1.00
Shandong	Jinan	9.60	9.60	0.00
Henan	Zhengzhou	9.60	9.60	0.00
Liaoning	Shenyang	8.80	8.70	0.10
-	Beijing	9.45	9.45	0.00
-	Average	9.16	9.31	-0.15
Prices are for reference only. RMB1=US$0.1424 (Nov 26)

Market analysis

Demand for lysine improved as feed producers increased inventories in preparation for the upcoming New Year holidays. Prices remained stable in most parts of China while producers who limited output stood firm.

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

Market forecast

Lysine producers who have limited production were not keen to take orders at current price levels. With the pre-festive stockpiling in progress, lysine market is likely to strengthen in the coming weeks, albeit modestly.