July 18, 2016
China Lysine Weekly: Tight availability lifts prices (week ended Jul 18, 2016)
An eFeedLink Exclusive
Price summary
Prices moved higher.
Price quotes of 98.5-percent lysine were in the range of RMB9.50-10/kg. Average prices increased RMB0.07/kg to RMB9.70/kg.
Price quotes of 70-percent lysine remained at RMB5.50-6.10/kg.
For imported 98.5-percent lysine, transacted prices were higher at RMB11.70-12.10/kg.
|
Weekly transacted prices of imported lysine in China (RMB/kg) | ||||
|
Provinces |
City/Municipality |
Price as of Jul 18 |
Price as of Jul 11 |
Price change |
|
Guangdong |
Guangzhou |
10.00 |
10.00 |
0.00 |
|
Sichuan |
Chengdu |
9.80 |
9.80 |
0.00 |
|
Shandong |
Jinan |
9.50 |
9.50 |
0.00 |
|
Henan |
Zhengzhou |
9.50 |
9.40 |
0.10 |
|
Liaoning |
Shenyang |
9.80 |
9.50 |
0.30 |
|
- |
Beijing |
9.60 |
9.60 |
0.00 |
|
- |
Average |
9.70 |
9.63 |
0.07 |
|
|
|
|
|
|
|
Weekly prices of imported lysine in China (RMB/kg) | ||||
|
Provinces |
City/Municipality |
Price as of Jul 18 |
Price as of Jul 11 |
Price change |
|
Guangdong |
Guangzhou |
12.10 |
12.10 |
0.00 |
|
Sichuan |
Chengdu |
11.70 |
11.70 |
0.00 |
|
Shandong |
Jinan |
11.70 |
11.70 |
0.00 |
|
Henan |
Zhengzhou |
11.90 |
11.80 |
0.10 |
|
Liaoning |
Shenyang |
11.70 |
11.40 |
0.30 |
|
- |
Beijing |
11.75 |
11.75 |
0.00 |
|
- |
Average |
11.81 |
11.74 |
0.07 |
|
Prices are for reference only. | ||||
Market analysis
CBOT soy futures prices surged higher during early parts of the previous week, but pared gains before the week ended.
Lysine consumption stayed flat during the week in review. However, as the production of a local producer shrank considerably, the availability of lysine was tight with most major producers manufacturing to fulfil previously concluded orders. Several feed millers increased stockpiles amid concerns that supplies are likely to diminish further with an Asian producer set to halt operation for three weeks for routine maintenance.
Consequently, lysine prices continued to climb higher, albeit slowly.
In Europe, lysine price quotes stayed stable in the range of RMB1.57-1.63/kg.
Market forecast
Limited supplies of lysine will help to underpin prices in the coming weeks. Moreover, hog feed millers, who are expected to increase production in anticipation of stronger demand during August and September, will increase purchases. Lysine market is therefore expected to remain firm.
