Slight Growth in Market Price of Lysine in Nov. 2015

Guangzhou, December 15, 2015 (Newswire.com) - In Nov. 2015, the market price of 98.5% lysine was USD1,266.74t (RMB8,000/t), up by 1.83% month on month, and that of 70% lysine was USD807.55/t (RMB5,100/t), up by 2.57% month on month. Domestic lysine market shows an upturn.

In this month, manufacturers maintained low operating rate. Notably, Global Bio-chem Technology Group Co., Ltd. (Global Bio-chem) officially launched production on 6 Nov., whose monthly output is expected to reach 20,000 tonnes. However, due to rising price of raw material corn in mid-Nov., Global Bio-chem suspended production. It resumed quotation after 20 Nov.

CJ (Shenyang) Biotech Co., Ltd. shut down production line in this month, no information about restarting time has been disclosed. CJ Liaocheng Biotech Co., Ltd. was running at operating rate.

COFCO Biochemical (Anhui) Co., Ltd. still suspended production, when to restart is uncertain. Shandong Shouguang Juneng Golden Corn Co., Ltd. had an overhaul for one week, because of bacterial infections in production facilities.

Main manufacturers increased quotations:

Meihua Holdings Group Co., Ltd.

First week quotation

98% lysine: USD1.12 /kg (RMB7.1/kg)

70% lysine: USD0.70/kg (RMB4.4/kg)

Third week quotation

98% lysine: USD1.14 /kg (RMB7.2/kg)

70% lysine: USD0.71//kg (RMB4.5/kg)

Global Bio-chem

Quotation from first week to third week

98% lysine: USD1.12/kg (RMB7.1/kg); USD1.16/kg (RMB7.3/kg); USD1.20/kg (RMB7.6/kg)

70% lysine: USD0.71/kg (RMB4.5/kg); USD0.70/kg (RMB4.4/kg); USD0.74/kg (RMB4.7/kg)

CCM analyzed that a key driver inside lysine price growth was that many manufacturers were willing to raise lysine price, thanks to low stock in upstream and downstream industries. In recent months, manufactures kept low operating rate on account of sluggish lysine market, and they actively sought for export opportunity to sell of stock. It's revealed that Q4 orders from European market have been signed.

Downstream clients thought that lysine price continued to fall, so they kept low stock. With the traditional peak season of farming industry in autumn, the demand for lysine grew. It's estimated that the price uptrend will continue in a short period.

Source: CCM

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