July 26, 2016
 
China Methionine Weekly: Subdued demand holds prices weak (week ended Jul 25, 2016)
 
An eFeedLink Exclusive
 
 
Price summary
 
Prices were stable to lower.
                      
Price quotes of imported dl-methionine were in the range of RMB28-29.50/kg, lower by RMB0-0.20/kg.
 
For liquid methionine*, price quotes were unchanged at RMB24.50-26/kg.
 

Weekly transacted prices of dl-methionine in China

Area

Jul 13 - Jul 18
(RMB/kg)

Jul 19 - Jul 25
(RMB/kg)

Price change
(RMB/kg)

Guangzhou

29.50

29.50

0.00

Chengdu

29.00

29.50

0.00

Jinan

28.00

28.00

0.00

Nanjing

28.50

28.50

0.00

Shijiazhuang

28.50

28.30

-0.20

Zhengzhou

28.00

28.00

0.00

Shenyang

28.50

28.50

0.00

Beijing

28.50

28.30

-0.20

Prices refer to delivered-to-feedmill prices, and are for reference only.

 

 

 

 

Weekly transacted prices of liquid methionine* in China

Area

Jul 13 - Jul 18
(RMB/kg)

Jul 19 - Jul 25
(RMB/kg)

Price change
(RMB/kg)

North

26.00

26.00

0.00

Central

24.50

24.50

0.00

South

24.50

24.50

0.00

Prices refer to delivered-to-feedmill prices, and are for reference only.
RMB1=US$0.1498 (Jul 26)


*Commonly referred to in China as liquid methionine is methionine hydroxyl analogue, a liquid source of supplemental methionine.
 
 
Market analysis
 
Prices of egg, which usually strengthen during summer, failed to pick up significantly this year due to China's weak economy. Meanwhile, low inventories of hog and soft broiler prices continued to impede the demand for feed from these sectors. Consequently, disappointed feed millers turned cautious and kept methionine stocks low while limiting feed production for the sector.
 
Methionine prices were therefore soft as supply exceeded demand.
 
In Europe, spot prices of methionine were in the range of EUR3.65-3.71/kg whereas large volume orders above 10 tonnes were at EUR3.05-3.10/k. Demand waned as most buyers have placed orders for August.
 

Market forecast
 
Methionine market will continue to face slack demand during the first half of August as the prices of livestock products remain weak.
 
Towards mid-August, feed consumption should increase as China prepares for the celebration of Mooncake Festival. Egg demand will strengthen due to the making of mooncakes, lending support to the sales of methionine together with recovering pork and chicken demand.
 

 


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