September 25, 2003

 

 

Will Lysine Prices in China Continue to Soar?

 

An eFeedLink Exclusive Report

 

Lysine prices in China shot up by a great extent early this week, with prices varying from day to day to an unimaginable high of RMB30.0/kg. This is mainly the result of severe tightness in supply. What is the lysine supply situation in China for the nearby term? Will prices continue to soar?

 

Take a look at local lysine production in China: feed millers' hopes for increased output by local producers have been tarnished. Some 65% of lysine by Da Cheng's third phase project has entered the market, but its small quantity is still not able to relieve the tight situation in the market. In addition, the problems in production of Da Cheng and Sichuan Chuan Hua are still negatively influencing market supply.

 

On the other hand, the arriving volume of imported lysine still remains small. It is reported that some 2000 tons of lysine might be delayed in arriving at Chinese ports till mid-October.

 

The result is severe tightness in supply will not be mitigated till middle of October. Market analysts are expecting an unabated increase in China's lysine prices for a considerable period of time.