In June 2016, some lysine producers continue raising their quotations.
According to CCM's price monitoring, as of 12 June, quotations from leading
producers were as follows:
CJ Group Co., Ltd.
-
98% Lysine: suspending offering quotations
-
70% Lysine: USD0.83/kg (RMB5.5/kg), up USD0.08/kg (RMB0.5/kg) MoM
Shandong Shouguang Juneng Golden Corn Co.,
Ltd.
-
98% Lysine: USD1.31/kg (RMB8.6/kg), up USD0.15/kg (RMB1/kg) MoM
-
70% Lysine: USD0.82/kg (RMB5.4/kg), up USD0.12/kg (RMB0.8/kg) MoM
Global Bio-chem Technology Group Co., Ltd.
-
98% Lysine: USD1.35/kg (RMB8.9/kg), up USD0.09/kg (RMB0.6/kg) MoM
-
70% Lysine: USD0.82/kg (RMB5.4/kg), up USD0.06/kg (RMB0.4/kg) MoM
Manufacturers' promotion boosts domestic market price of lysine. According to
CCM's price monitoring, as of 21 June, the market price of 70% lysine reached
USD812.02/t (RMB5,350/t), up 4.86% MoM but slightly down 0.6% YoY.
Monthly market price of 70% lysine in China, Jan. 2015-June 2016 (as of 21
June)
![](http://www.cnchemicals.com/Webdata/WebResources/image/20160905/20160905101626_9905.bmp)
Source: CCM
![](http://www.cnchemicals.com/Webdata/WebResources/image/20160905/20160905101803_8355.jpg)
Lysine manufacturers continues raising their sales prices in June, due to:
1. Possibility of short supply
According to CCM's research, as of 21 June, some lysine producers' operating
rate remained low:
-
CJ (Shenyang) Biotechnology Co., Ltd.: has
not resumed production yet
-
COFCO Bio-chemical (Anhui) Co., Ltd.: is
still relocating its plant
-
Meihua Holdings Group Co., Ltd. and
Ningxia Eppen Biotech Co., Ltd.: are maintaining a temporarily low
operating rate and their supply continues being tight
At the same time, lysine manufacturers are slowly dealing with the orders
received previously. As a result, downstream producers who are in need of
lysine have to purchase the more expensive lysine to replenish their
inventory. So lysine manufacturers seize the opportunity to raise price.
2. Increasing raw material price
The rebounding market price of corn starch (raw material for lysine) is
favorable for the rise in lysine market price. At present, domestic corn market
is mainly led by the national temporarily stored corn which is sold at a
premium in recent auctions for overstored corn. Affected by this, domestic
market price of corn starch rebounds. According to CCM's price monitoring, as
of 21 June, the ex-works price of corn starch went up by 4.1% MoM to
USD356.96/t (RMB2,351.83/t).
3. Hyped soybean meal price
Domestic market price of soybean meal (substitute for lysine) continues rising
in June, driven by the news that yields of soybean may decrease in South
America. This boosts the demand for lysine. In this context, the manufacturers
are obviously more willing to raise the price.
Despite the recent rise in lysine market price, the slow recovery in demand for
feed may depress upward trend. Despite the slight increase recently, the number
of live pigs in farm is still lower than last year. According to the Ministry
of Agriculture of the People's Republic of China, the number of live pigs and
adult sows in farm decreased by 2.9% and 3.6% YoY.
On 18 May, 2016, the Ministry of Environmental Protection of the People's
Republic of China released a draft of the Technical Guidelines for Delimiting
Livestock Breeding Forbidden Area to solicit public opinion. Meanwhile, the
national elimination of small farms from the market continues. These factors
are unfavorable for the recovery in live pigs in farm. Therefore, the rise in
domestic market price of lysine is likely to be depressed in the coming period.
In April 2016, China's export of lysine fell slightly after the crazy surge in
March.
In March, the export volume of lysine hit record high in March. However, according
to China Customs, altogether 28,147 tonnes of lysine and lysine ester &
salt were exported from China, down 5.75% MoM but up 4.94% YoY.
Europe is still the leading export destination with increasing export volume.
In April, the export volume to Europe accounted for 49.58% of the national
total (33.82% in March 2016; 27.26% in full-year 2015).
Exports of lysine ester & salt in China, Jan. 2014-April 2016
![](http://www.cnchemicals.com/Webdata/WebResources/image/20160905/20160905101711_9810.bmp)
Source: China Customs
This article comes from Corn Products China News 1608, CCM
![](http://www.cnchemicals.com/Webdata/WebResources/image/20160905/20160905101733_3686.jpg)
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Tag: corn lysine