July 25, 2017
                
China Lysine Weekly: Market strengthens at a slow pace (week ended Jul 24. 2017)
 
An eFeedLink Exclusive
 

Price summary
 
Prices moved higher.
 
Price quotes of 98.5-percent lysine rose to the range of RMB8.60-8.80/kg. Average price increased RMB0.13/kg to RMB8.70/kg.
                                                   
Price quotes of 70-percent lysine strengthened to RMB4.90-5/kg.
 
For imported 98.5-percent lysine, transacted prices were stable to higher in the range of RMB10.50-11/kg.
 

Weekly transacted prices of imported lysine in China (RMB/kg)

Provinces

City/Municipality

Price as of Jul 24
(RMB/kg)

Price as of Jul  17
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

8.80

8.60

0.20

Sichuan

Chengdu

8.60

8.60

0.00

Shandong

Jinan

8.60

8.50

0.10

Henan

Zhengzhou 

8.70

8.50

0.20

Liaoning

Shenyang

8.70

8.60

0.10

-

Beijing

8.80

8.60

0.20

-

Average

8.70

8.57

0.13

 

 

 

 

 

Weekly prices of imported lysine in China (RMB/kg)

Provinces

City/Municipality

Price as of Jul 24
(RMB/kg)

Price as of Jul  17
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

10.90

10.70

0.20

Sichuan

Chengdu

10.50

10.50

0.00

Shandong

Jinan

10.80

10.70

0.10

Henan

Zhengzhou 

11.10

10.90

0.20

Liaoning

Shenyang

10.60

10.50

0.10

-

Beijing

10.95

10.75

0.20

-

Average

10.81

10.68

0.13

Prices are for reference only.
RMB1=US$0.1481 (Jul 25)  

 
 
Market analysis
 
Although lysine producers lifted prices quotes substantially recently, the increase in transaction price was slow as feed millers and livestock producers were not keen to stockpile high inventories with hog feed consumption limited. Worsened by China's extremely high summer weather temperature, this year's feed intake of hog was particularly low.
 
In Europe, price quotes for Q3 deliveries remained in the range of EUR1.30-1.35/kg.
 
 
Market forecast  
            
Lysine market will stay firm on the back of tight availability during summer and strong corn prices. However, with buyers holding back purchases amid sluggish feed demand, price hikes will be limited. Moreover, soymeal remains cheap despite the recent rebound, hence allowing feed millers to limit the usages of lysine in feed formulation.
 
 
 


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