December 5, 2008

                                   

China Lysine Weekly: Stabilised prices induce replenishment (week ended Dec 4, 2008)

 
An eFeedLink Exclusive
 
 

Price summary

 

Prices were marginally lower in most regions.

 

Average transacted prices of locally-produced lysine were lower at RMB10.40/kg, down RMB0.05/kg from the previous week. Transacted prices of 65-percent locally-produced lysine were at RMB6.00-6.30/kg.

 

As for imported lysine, traders concluded deals at prices in the range of RMB10.90-11.20/kg. Prices for imported 65-percent lysine were lower at RMB6.10-6.40/kg. 

 

Weekly transacted prices of imported lysine in China
Region
Week 48
Week 49
Price change
(RMB/kg)
Nov 21 - Nov 27 (RMB/kg)
Nov 28 - Dec 4 (RMB/kg)
Guangzhou
11.20
11.50
-0.05
Chengdu
11.05
11.00
-0.05
Jinan
11.15
11.10
-0.05
Changsha
--
--
--
Nanjing
11.15
11.10
-0.05
Zhengzhou
11.05
11.00
-0.05
Shenyang
11.25
11.10
-0.15
Beijing
11.05
11.00
-0.05
Prices refer to delivered-to-feedmill prices, and are for reference only.
 

Weekly transacted Prices of locally produced lysine in China

Region

Week 48

Week 49

Price change
(RMB/kg)

Nov 21 - Nov 27 (RMB/kg)

Nov 28 - Dec 4 (RMB/kg)

Guangzhou

10.40-10.60

10.30-10.60

-0.10 to 0

Chengdu

10.20-10.50

10.20-10.50

-

Jinan

10.30-10.60

10.30-10.50

-0.10 to 0

Changsha

10.50-10.70

10.50-10.70

-

Nanjing

10.30-10.60

10.30-10.50

-0.10 to 0

Zhengzhou

10.20-10.50

10.20-10.40

-0.10 to 0

Shenyang

10.40-10.70

10.30-10.50

-0.20 to -0.10

Beijing

10.20-10.50

10.20-10.40

-0.10 to 0

Prices refer to delivered-to-feed-mill prices, and are for reference only.
RMB1=US$0.1453(Dec 5)
 
 

Market analysis

 

China's lysine prices stabilized after having fallen below producers' breakeven levels recently. Some buyers stepped up purchasing as their inventories were running low.


Meanwhile, broiler and hog feed demand improved as livestock replenishments in preparation of the Spring Festival in late January began. Layer feed demand, however, remained sluggish amid layer rearing losses.

 
 
Market forecast
 
Prices of lysine will likely remain weak in the near term as soymeal prices are expected to fall further. However, as prices have fallen below production costs, there is little margin to move lower.  
 
 
 

All rights reserved. No part of the report may be reproduced without permission from eFeedLink.