April 4, 2017
China Methionine Weekly: Ample supply weakens market (week ended Apr 4, 2017)
An eFeedLink Exclusive
Price summary
Prices moved lower.
Price quotes of imported dl-methionine dipped to the range of RMB22.30-23/kg, lower by RMB0.30-0.80/kg.
For liquid methionine*, price quotes stayed stable at RMB18.50-19/kg.
|
Weekly prices of dl-methionine in China | |||
|
Area |
Mar 21 - Mar 28 |
Mar 29 - Apr 4 |
Price change |
|
Guangzhou |
23.50 |
22.70 |
-0.80 |
|
Chengdu |
23.50 |
23.00 |
-0.50 |
|
Jinan |
22.80 |
22.30 |
-0.50 |
|
Nanjing |
23.00 |
22.70 |
-0.30 |
|
Shijiazhuang |
23.00 |
22.50 |
-0.50 |
|
Zhengzhou |
22.80 |
22.30 |
-0.50 |
|
Shenyang |
22.80 |
22.50 |
-0.30 |
|
Beijing |
23.00 |
22.50 |
-0.50 |
|
| |||
|
Weekly transacted prices of liquid methionine* in China | |||
|
Area |
Mar 21 - Mar 28 |
Mar 29 - Apr 4 |
Price change |
|
North |
19.00 |
19.00 |
0.00 |
|
Central |
19.00 |
19.00 |
0.00 |
|
South |
18.50 |
18.50 |
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
Methionine demand improved as the broiler sector continued to recover with the support of pre-Qingming Festival buying.
However, supplies of methionine were ample in the market due to the industry's expansion over the past few years. Moreover, with Zhejiang NHU poised to commence production later this year, several buyers limited stockpiles in view of weak prices ahead.
Meanwhile, one chemical plant near Adisseo's methionine plant in Nanjing was on fire last Thursday. Several buyers increased stockpiles amid concerns that Adisseo's methionine production might be affected.
In Europe, prices of methionine for Q2 2017 deliveries were in the range of EUR2.37-2.50/kg.
Market forecast
Supplies of methionine are projected to be abundant in the longer term even if Adisseo's production in Nanjing decreased due to the fire in the nearby chemical plant. Prices may rise should availability tighten in the near term.
Nonetheless, with Zhejiang NHU's new plant set to start production this year, the imminent supply surge will hold down methionine prices.
