October 21, 2003

Lysine Asking Prices in China Soared above RMB45/kg Early This Week

An eFeedLink Exclusive Report

Lysine prices in China continue to soar early this week. Current quotations were generally above RMB45/kg, with highest asking price reaching RMB50/kg. This is really an exceptional situation in China's lysine market.

At present, lysine transactions are concluded at an absurdly high price level, varying from day to day. General transacted prices ranged between RMB40.0-45.0/kg, registering an increase of RMB5.0-7.0/kg versus last weekend's prices.

Currently, transacted prices of locally produced lysine and imported lysine hovered at same price level.

Overall, although lysine supply was reportedly arriving at Chinese ports, evidently there was still very little supply available on the market. This was because most feed millers' inventories have been depleted, and whenever there was any available supply, they would quickly make an effort  to replenish their stocks.

Of late, China's soymeal prices were seen making corrections within a high-level price range. Soymeal prices have exerted a certain influence but was not the key factor propelling China's lysine prices up. The successive severe tightness in supply and active speculative activity in China were the main reasons behind the big jump in lysine prices.