The 4th week of Methioine market weekly report in 2010: The price was weak and the transaction was sluggish

1.       Domestic market

The 4th week (January 25th ¨CJanuary 31st) in 2010, this week, one mainstream brand European manufacturer restored the production, since then, the domestic expectation for the high price was unfulfilled. With the further decline in the purchasing demand of the domestic feed enterprises before the festival and the arrival volume increases of some Japanese supply, the domestic methioine market tended to stable. This week, the domestic imported solid methioine (Zhuyou and Caoda of Japan, Adisso of France, Digasu of German), the marketable offering price was about 47.0-48.0yuan per kg, and the actual transaction price was about 47.5yuan per kg; the liquid methioine price of Novus and Zhuyou was about 35yuan per kg.

2.       Market analysis

(1) The dynamic news of the manufacturers: one mainstream brand European manufacturer restored the production, since then, the domestic expectation for the high price was unfulfilled. With the further decline in the purchasing demand of the domestic feed enterprises before the festival and the arrival volume increases of some Japanese supply, the domestic methioine market tended to weak. It was reported that, since later January, the new Japanese arrival volume put certain pressure on the current market. With the sufficient supply in the European methioine market, the local high price tended to down.

(2) The traders¡¯ attitude influenced the market. With the news of production halts, many northern feed enterprises started job-lot procurement. Until now, northern regions had accomplished the restocking before the festival, which put certain pressure on the traders. In some regions, the solid methioine price had already started to adjust within the range of 0.5-1.0yuan per kg.

(3) The international crude oil price: Although the international crude oil did not have strong impact on the short-term methioine market, the current price was about 80 dollars per bushel, which had uncertain influence on the methioine market.

(4) The feed enterprises had little inventory volume. Since the beginning of January, the methioine market had had a centralized procurement, and some feed enterprises and traders enlarged their purchasing volume. While this week, with the arrivals of the Japanese supply, some traders were keen to sell, therefore, the methioine price was weak in some regions.

(5) The international crude oil price declined. Recently, due to influence of the strong US dollar and lowest utilized coefficient of the American crude oil since 25 years, the NYMEX price dwindled to the lowest point since later December last year. Seen from the long-term direct proportional relation between the crude oil price and the methioine price, it was no double that it put certain pressure on the current domestic market.

3.      Market analysis

In all, with the disappearance of the ¡°phased anxiety¡± of the international methioine supply, the European market price had already become weak; the domestic methioine price would be weak before the festival as well.

4.       Regional market quotation details

Table 1¡¡ Average transaction price of methionine in China (Yuan/kg)

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