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
(RMB/kg)

Price as of Dec 13
(RMB/kg)

Price change
(RMB/kg)

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
(RMB/kg)

Price as of Dec 13
(RMB/kg)

Price change
(RMB/kg)

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.
RMB1=US$0.1440 (Dec 20)

 

 

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.

 

However, it should be noted that soymeal prices have moved higher in China of late due to reduced output amid strict pollution controls. Should soymeal costs rise further, higher inclusion rates of lysine in feed formulation will stimulate demand, lending support to the market.
 
 
  

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