December 20, 2016
China Lysine Weekly: Soft export demand weakens prices (week ended Dec 20, 2016)
An eFeedLink Exclusive
Price summary
Prices fell sharply.
Price quotes of 98.5-percent lysine plunged to the range of RMB12.50-14/kg. Average prices slid RMB1.15/kg to RMB13.02/kg.
Price quotes of 70-percent lysine dropped to RMB7.80-8.50/kg.
For imported 98.5-percent lysine, transacted prices were lower in the range of RMB14.90-16.10/kg.
|
Weekly transacted prices of imported lysine in China (RMB/kg) | ||||
|
Provinces |
City/Municipality |
Price as of Dec 20 |
Price as of Dec 13 |
Price change |
|
Guangdong |
Guangzhou |
14.00 |
16.50 |
-2.50 |
|
Sichuan |
Chengdu |
13.00 |
14.00 |
-1.00 |
|
Shandong |
Jinan |
12.80 |
13.50 |
-0.70 |
|
Henan |
Zhengzhou |
12.50 |
13.00 |
-0.50 |
|
Liaoning |
Shenyang |
13.00 |
14.00 |
-1.00 |
|
- |
Beijing |
12.80 |
14.00 |
-1.20 |
|
- |
Average |
13.02 |
14.17 |
-1.15 |
|
|
|
|
|
|
|
Weekly prices of imported lysine in China (RMB/kg) | ||||
|
Provinces |
City/Municipality |
Price as of Dec 20 |
Price as of Dec 13 |
Price change |
|
Guangdong |
Guangzhou |
16.10 |
18.60 |
-2.50 |
|
Sichuan |
Chengdu |
14.90 |
15.90 |
-1.00 |
|
Shandong |
Jinan |
15.00 |
15.70 |
-0.70 |
|
Henan |
Zhengzhou |
14.90 |
15.40 |
-0.50 |
|
Liaoning |
Shenyang |
14.90 |
15.90 |
-1.00 |
|
- |
Beijing |
14.95 |
16.15 |
-1.20 |
|
- |
Average |
15.13 |
16.28 |
-1.15 |
|
Prices are for reference only. | ||||
Market analysis
Export demand for Chinese lysine products weakened as most buyers have placed orders for Q1. Moreover, price quotes of Chinese products have exceeded those of local producers in Europe, hence further dampening the buying interest.
Domestically, demand for lysine was stable as animal producers fattened animals in preparation for January's pre-Chinese New Year market. Nevertheless, with inventory pressure building due to slower overseas demand, lysine producers slashed prices in efforts to move sales.
In Europe, price quotes for Q1 deliveries rose to around EUR1.50/kg.
Market forecast
Most buyers are reluctant to stock high inventories of lysine with prices exceptionally high. Prices are expected to soften as producers attempt to close deals in order to clear inventories.
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