August 2, 2016
                                           
China Lysine Weekly: Prices slide as buyers withhold buying (week ended Aug 1, 2016)
 
An eFeedLink Exclusive
 

Price summary
 
Prices moved lower.
 
Price quotes of 98.5-percent lysine fell to RMB9.50/kg. Average prices were lower by RMB0.20/kg at RMB9.50/kg.
                                                   
Price quotes of 70-percent lysine slid to the range of RMB5.50-5.50-5.80/kg.
 
For imported 98.5-percent lysine, transacted prices were lower in the range of RMB11.40-11.9 0/kg.
 

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

Provinces

City/Municipality

Price as of Aug 1
(RMB/kg)

Price as of Jul 25

Price change
(RMB/kg)

Guangdong

Guangzhou

9.50

10.00

-0.50

Sichuan

Chengdu

9.50

9.80

-0.30

Shandong

Jinan

9.50

9.50

0.00

Henan

Zhengzhou 

9.50

9.50

0.00

Liaoning

Shenyang

9.50

9.80

-0.30

-

Beijing

9.50

9.60

-0.10

-

Average

9.50

9.70

-0.20

         

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

Provinces

City/Municipality

Price as of Aug 1
(RMB/kg)

Price as of Jul 25
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

11.60

12.10

-0.50

Sichuan

Chengdu

11.40

11.70

-0.30

Shandong

Jinan

11.70

11.70

0.00

Henan

Zhengzhou 

11.90

11.90

0.00

Liaoning

Shenyang

11.40

11.70

-0.30

-

Beijing

11.65

11.75

-0.10

-

Average

11.61

11.81

-0.20

Prices are for reference only.
RMB1=US$0.1505 (Aug 2)

 

Market analysis
 
Supplies of lysine remained tight as producers took turns to halt operation for maintenance. However, demand weakened substantially as feed millers held back purchases while soymeal prices continued to tumble over the week. Moreover, export orders slowed as demand from Europe softened while global producers lowered prices.
 
In Europe, lysine price quotes dropped to the range of RMB1.58-1.63/kg.
 
 
Market forecast  
            
Lysine demand will be limited as feed producers scale down production while livestock feed sales are slow and soymeal prices look set to stay soft in the near term.
 
Nonetheless, at least two major lysine producers will halt operation for two weeks during August for maintenance. This will lend some support to the lysine prices.
 
 
 


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