The Lysine Price Rose to the Highest in the Past 6 Years

After entering January, the market price of lysine has climbed strongly. As of January 22, domestic lysine manufacturers have successively increased their prices, of which 70% lysine content was priced at 5.8-6.5 yuan/kg, and 98% lysine content was more than 11 yuan/kg, which has been the highest price since 2016. The causes include:
 
The increase in the corn price has directly pushed up the production cost of lysine.  Since 2021, the listed prices of deep processing enterprises have continuously set new historical highs.  By January 22, the listed corn price for deep processing enterprises in Heilongjiang and Jilin ranged from 2700-2840 yuan/ton, and the listed corn price of Shandong deep processing enterprises reached 2920-3080 yuan/ton, and the average cost increased within one month has reached 200 yuan/ton.
 
The capacity of domestic pig production has recovered rapidly, and the stock of reproductive sows has been increasing for 6 consecutive months since June 2020; the stock of sows and pigs both increased by about 30% over the same period last year.  The stock of live pigs has recovered to about 90% of the normal year. It is expected that the stock of live pigs will return to a normal level in the first half of 2021.  The expected increase in pig feed consumption will significantly increase the demand for lysine.
 
Moreover, after the new corn launching, the corn price has continued to rise sharply. It is expected that the corn price will remain high in 2021. As a result, using other raw materials such as wheat as substitutes for corn within feed companies will also boost lysine consumption.