January 4, 2017
China Methionine Weekly: prices weaken amid bleak outlook of broiler market (week ended Jan 3, 2017)
An eFeedLink Exclusive
Price summary
Prices stayed soft.
Price quotes of imported dl-methionine dropped to the range of RMB26-26.20/kg, down by RMB0.30-0.50/kg.
For liquid methionine*, price quotes remained at RMB23/kg.
|
Weekly prices of dl-methionine in China | |||
|
Area |
Dec 21 - Dec 27 |
Dec 28 - Jan 3 |
Price change |
|
Guangzhou |
26.50 |
26.20 |
-0.30 |
|
Chengdu |
26.50 |
26.20 |
-0.30 |
|
Jinan |
26.50 |
26.00 |
-0.50 |
|
Nanjing |
26.50 |
26.00 |
-0.50 |
|
Shijiazhuang |
26.50 |
26.00 |
-0.50 |
|
Zhengzhou |
26.50 |
26.00 |
-0.50 |
|
Shenyang |
26.50 |
26.00 |
-0.50 |
|
Beijing |
26.50 |
26.00 |
-0.50 |
|
| |||
|
Weekly transacted prices of liquid methionine* in China | |||
|
Area |
Dec 21 - Dec 27 |
Dec 28 - Jan 3 |
Price change |
|
North |
23.00 |
23.00 |
0.00 |
|
Central |
23.00 |
23.00 |
0.00 |
|
South |
23.00 |
23.00 |
0.00 |
|
Prices refer to delivered-to-feedmill prices, and are for reference only. | |||
*Commonly referred to in China as liquid methionine is methionine hydroxyl analogue, a liquid source of supplemental methionine.
Market analysis
Poultryfeed production remained low while feed millers were wary of the weak broiler market. Although hog prices firmed up amid strong pork demand, feed demand stayed flat with hog population sliding.
Consequently, sales of methionine feel below expectations, prompting distributors and traders to cut prices in attempts to entice buyers.
NHU will be investing RMB5.37 billion to construct its methionine facilities with a total capacity of 250,000 tonnes. The first phase, in Shandong, will be ready for production by September.
In Europe, prices of methionine for 2017 Q1 deliveries were unchanged in the range of EUR2.40-2.50/kg.
Market forecast
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