The 6th-8th week of Lysine market weekly report in 2010: the weak tendency would continue after the festival, while the restocking would scale up

1.       Domestic market

The 6th-8th week (February 8th-February 28th) in 2010, in the 6th week, the market was stable, and the 7th week was the Chinese New Year holiday. In this week, the offering price of the lysine (98.5%) was below 12.2yuan per kg, the lower price in market was about 12.0yuan per kg. Comparatively speaking, the selling price of the lysine (65%) was over 6yuan per kg.

2.       Market analysis

(1) The dynamic situation of the manufacturers: after the festival, the big manufacturers had drawn up their sales goal. In the domestic market, Global bio-chem, E¡¯ppens and BBCA had actively introduced their new sales programs to boost the transaction volume increase, and they were actively exporting. At present, due to the sufficient supply volume, the offering price of the big manufacturers was not high.

(2) The mentality of traders: as the terminal stocking volume consumed, the big feed enterprises were willing to restock, while with the sufficient supply volume and the successively downward price, the traders had to lower their price, therefore, the transaction turned a little better.

(3) The purchasing condition of the feed enterprises: as the lysine price continued to dwindle slowly before the festival, some terminal purchaser still considered that the price should continue to decrease, so the transaction was sluggish. The feed enterprises with little stock volume enlarged their purchasing volume somewhat in northern regions, eastern regions and southwestern regions. The insiders claimed that, as the terminal stock volume consuming, the lysine procurement volume would scale up in the early March.

(4) The purchasing enthusiasm increased somewhat in the terminal market. At present, the offering price of the lysine (98.5%) was about 12.0-12.5yuan per kg, the current price was satisfied for most feed enterprises; therefore, the big traders had enlarged their purchasing volume. Under this circumstance, the lysine procurement volume would scale up in the early March.

3.       Market forecast

In short, with the lysine price decrease, the terminal feed enterprises increased their purchasing volume. The expected lysine price would tend to weak; the lysine procurement volume would scale up in the early March that was worth concerns.

4.       Regional transaction details

Table 1¡¡ Average prices of domestic Lysine (98.5%) (Yuan/kg)

Table 2¡¡ Average prices of imported Lysine in China (Yuan/kg)

Figure 1¡¡Average price of imported Lysine in China (Yuan/kg)

Figure 2¡¡Average price of domestic Lysine in China (Yuan/kg)