December 6, 2016
China Methionine Weekly: Firm demand, higher import costs strengthen prices (week ended Dec 6, 2016)
An eFeedLink Exclusive
Price summary
Prices moved higher.
Price quotes of imported dl-methionine rose to the range of RMB26.50-27/kg, higher by RMB0.50-1/kg.
For liquid methionine*, price quotes stayed unchanged at RMB24/kg.
|
Weekly prices of dl-methionine in China | |||
|
Area |
Nov 23 - Nov 29 |
Nov 30 - Dec 6 |
Price change |
|
Guangzhou |
26.50 |
27.00 |
0.50 |
|
Chengdu |
26.50 |
27.00 |
0.50 |
|
Jinan |
25.50 |
26.50 |
1.00 |
|
Nanjing |
26.00 |
26.50 |
0.50 |
|
Shijiazhuang |
26.00 |
26.50 |
0.50 |
|
Zhengzhou |
25.50 |
26.50 |
1.00 |
|
Shenyang |
26.00 |
27.00 |
1.00 |
|
Beijing |
26.00 |
26.50 |
0.50 |
|
| |||
|
Weekly transacted prices of liquid methionine* in China | |||
|
Area |
Nov 23 - Nov 29 |
Nov 30 - Dec 6 |
Price change |
|
North |
24.00 |
24.00 |
0.00 |
|
Central |
24.00 |
24.00 |
0.00 |
|
South |
24.00 |
24.00 |
0.00 |
|
Prices refer to delivered-to-feedmill prices, and are for reference only. | |||
*Commonly referred to in China as liquid methionine is methionine hydroxyl analogue, a liquid source of supplemental methionine.
Market analysis
As export demand for methionine firmed up due to the depreciation of renminbi, Chinese producers lifted prices while inventories shrank. Meanwhile, local feed millers increased stockpiles, even as the poultry market showed little signs of improving, amid concerns that prices might rally like lysine.
With demand firm and prices of imported products on the rise due to the sharp devaluation of renminbi, prices of local methionine products increased during the period in review.
During October, China imported 10,256 tonnes of methionine, plunging 32% compared with the previous month, at an average price of RMB24,490/tonne. Monthly methionine export jumped 54% to 2,828 tonnes.
In Europe, prices of methionine for Q4 deliveries were in a wider range of EUR2.42-2.50/kg.
Market forecast
The downward scope of methionine prices will be limited at current price levels. Moreover, with export demand strong and prices of imported products high, local producers and traders will not be eager to cut prices even though domestic demand is lukewarm.
