CCM: Lysine enterprises reduce production to boost price in April 2015 10-04-2016

Summary: In April 2014, the main domestic lysine enterprises reduced production or suspended production, pushing up lysine price. It’s estimated that its market price will be on the rise in May, driven by the increased demand.

 

On 22 April, 2015, the domestic market price of 98.5% lysine was USD1,432/t, USD82/t higher than that in March; the price of 70% lysine was USD977/t, USD114/t higher than that in March.

 

It’s known that some enterprises successively raised quotations, further pushing up market price. On 17 April, Meihua Holdings Group Co., Ltd. increased 98.5% lysine price to USD1,465/t. On 21 April, Shandong Shouguang Juneng Golden Corn Co., Ltd. raised 98.5% lysine price to USD1,432/t, 70% lysine to USD977/t. Other enterprises like Ningxia Eppen Biotech Co. Ltd. (Ningxia Eppen), CJ Liaocheng Biotech Co., Ltd. (CJ Liaocheng) also followed suit.


Market price of 98.5% lysine and 70% lysine in China, Jan-22 April, 2015


Source: CCM 


The key drive of price growth was that some domestic lysine enterprises reduced production or suspended production, leading to decreasing supply.

 

  • CJ Liaocheng announced that it had production halt for a week from 4 to 10 April. Global Bio-chem Technology Group Co., Ltd. and Liangshan CHIA TAI Linghua Biotechnology Co., Ltd. suspended all production lines, and the restarting plans are not disclosed.
  • Ningxia Eppen had plant maintenance in its Chifeng plant.
  • East Hope Group suspended production, and it’s estimated that it would resume production at the end of April
  • Other lysine enterprises are working at low capacity.

 

The downstream clients demonstrated low purchasing enthusiasm, though the market price of lysine increased.

 

It’s estimated that market price of lysine will be on the rise in May, as some of the small-sized and middle-sized feed enterprises will replenish the stock from late April to early May and the large feed enterprises will restock in mid-to-late May.




About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606. 


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