Lysine Hydrochloride Prices to Skyrocket Ahead of EPPEN Plant Shutdown

The prices of Lysine Hydrochloride across the global market showcased an incremented trajectory throughout May and are predicted to surge in the forthcoming months as well. This price surge is likely to be supported by certain factors, including demand, a surge in energy costs, consumer confidence, and a rise in trade activity.

In the Chinese market, the prices of Lysine Hydrochloride are estimated to rise in the upcoming months at a  healthy rate compared to the previous month. This price trend of Lysine Hydrochloride will be prompted by the fact that EPPEN announced on June 8, 2023, that its Heilongjiang and Inner Mongolia bases would be shut down for equipment maintenance in June and July, respectively, which will affect the overall availability of various end-products including Lysine Hydrochloride. In 2021-2022, the plant produced more than 1,000,00 tonnes/year of food and feed-grade Lysine catering to the nation's requirement for the product. As per the information, The Heilongjiang base will be shut down during the second week of June, i.e., on June 10 until June 24, and the Inner Mongolia base will be shut down from July 1 to July 25. During this time, all production of Lysine Hydrochloride at both bases will be suspended. Because of this, considering the stock activity, a result of this could lead to a decrease in the supply of goods or services including Lysine Hydrochloride. This is because the plant is no longer producing those products or services, and fewer other suppliers may be available to meet the demand. Because of this, manufacturers and suppliers are expected to raise their Lysine Hydrochloride production cost and selling prices within both the domestic and the international market to clear out their previous stockpiles.

In the US and German markets, in regards with the demand side, the traders and local merchants are expected to focus on stocking their inventories before the shutdown. However, as the inquiries from the offshore market are forecasted to rise in forethcoming months, consumer confidence might get improve, which is supposed to help domestic retailers increase their regional Lysine Hydrochloride prices. In addition, the Consumer Price Index (CPI), which measures prices across the US market, increased 0.5% in May 2023 on a non-seasonally adjusted basis. In the German market, this was May 2023's second consecutive month. The German economy is happy with the slowdown in inflation in May. The German economy welcomed the slowdown in inflation in May, which helped fuel the upward price trend for several downstream products, including lysine hydrochloride.

According to the Chemanayst projection: "The prices of Lysine Hydrochloride are expected to continue rising across the global market with an enhanced export momentum. However, EPPEN stated that it anticipates starting production of Lysine Hydrochloride at both locations on time. The business declared that it would keep an eye on the issue and give updates as necessary.