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Market update: Lysine prices increase on supply disruptions

Post a commentBy RJ Whitehead , 04-Jan-2017

© iStock
© iStock

Prices of lysine, a major protein used in feed compounds, rose 78% month on month at the start of December in China, due to a shortage in supplies and an increase in demand. 

According to commodities analyst Mintec, supplies to major Chinese markets have been limited by stricter transport regulations starting in November, limiting the truck carriage size. 

 

This delayed lysine deliveries through November, leaving stocks in major trading regions scarce. Snowy weather conditions in the northeast regions of China have also disrupted transportation. 

On the demand side, an increase in the number of pigs in China this year has fuelled feed consumption. This has caused demand for lysine to strengthen, adding further upward pressure to prices.

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