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.
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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.
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