February 15, 2017
China Methionine Weekly: Post-festive prices tumble to 10-year lows (week ended Feb 13, 2017)
An eFeedLink Exclusive
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Weekly prices of dl-methionine in China | |||
|
Area |
Jan 25 - Jan 27 |
Jan 28 - Feb 13 |
Price change |
|
Guangzhou |
25.50 |
25.00 |
-0.50 |
|
Chengdu |
25.50 |
25.00 |
-0.50 |
|
Jinan |
25.00 |
23.50 |
-1.50 |
|
Nanjing |
25.30 |
24.50 |
-0.80 |
|
Shijiazhuang |
25.20 |
24.50 |
-0.70 |
|
Zhengzhou |
25.00 |
23.50 |
-1.50 |
|
Shenyang |
25.20 |
24.70 |
-0.50 |
|
Beijing |
25.20 |
24.50 |
-0.70 |
|
Weekly transacted prices of liquid methionine* in China | |||
|
Area |
Jan 25 - Jan 27 |
Jan 28 - Feb 13 |
Price change |
|
North |
21.00 |
21.00 |
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. | |||
Price summary
Prices moved lower.
Price quotes of imported dl-methionine slid to the range of RMB23.50-25/kg.
For liquid methionine*, price quotes remained at RMB21-23/kg.
*Commonly referred to in China as liquid methionine is methionine hydroxyl analogue, a liquid source of supplemental methionine.
Market analysis
H7N9 bird flu spread rapidly of late, shutting down the live poultry markets in the southern parts of China. Feed consumption shrank prominently partly for this reason and partly due to diminished post-Chinese New Year broiler inventories. Consequently, methionine sales plummeted compelling sellers to slash prices to 10-year low levels.
Meanwhile, China's methionine exports jumped 250% during 2016 as more production plants were completed.
In Europe, prices of methionine for 2017 Q2 deliveries were in the range of EUR2.45-2.50/kg.
Market forecast
Domestic demand for methionine is poised to remain sluggish with the bird flu disease rampant. Adding to the market pressure, local production is expected to continue growing as more plants are built. Prices of methionine are therefore seen weaker in the coming period.
