Leverage DeepSeek for Market Analysis Amid Trading Growth

effamall.com 12 February, 2025

Transactions Gain A Recovery Growth in the Last Two Days of the Week

Compared to the week before the Spring Festival, Mobaobuy.com saw a 504.6% leap in inquiries, a 460.1% jump in trading value, and a 95% surge in conversion rates during the brief four working days of the fifth week of 2025. Most orders this week were placed on Friday and Saturday, signaling the initiation of accelerated purchasing activity among downstream feed companies. Some feed companies may resume operations 2-5 days later than the official holiday schedule.

On the platform, 70% L-Lysine Sulfate, 98.5% L-Lysine HCL, and L-Threonine snatched the top three in terms of trading value this week.

Strong Restocking Demand Driven by Low Downstream Inventory Levels

At the start of the Year of the Snake, transactions ascended immediately upon the resumption of work, primarily due to the following factors:

Firstly, downstream players are operating with lower inventory levels. Many feed companies, anticipating a decline in post-holiday prices, have opted to maintain relatively small stocks, sufficient to cover only 15-25 days of consumption. Therefore, they are compelled to place purchasing orders promptly following the resumption of work after the holidays.

Secondly, the significant price reductions by major L-Threonine manufacturers prior to the Spring Festival greatly boosted post-holiday purchasing interest among downstream players, despite exerting little impact on transactions at that time. Similarly, the ex-factory prices of 98.5% L-Lysine HCL saw a notable drop from some producers following the holiday, further stimulating purchasing activity. With the decreased quotations for these two products, industry insiders believe that manufacturers of fermented amino acids have no incentive to depress prices for 70% L-Lysine Sulfate. This has also contributed to increased sales in this category.

Thirdly, the effects of the EU’s Lysine anti-dumping case have stabilized, restoring normality to the global feed additive market. Chinese manufacturers are expected to maintain their operations as usual, while the European market remains dependent on imports of Lysine. China’s exports of 98.5% L-Lysine HCL in December 2024 showed a year-on-year increase of 6.12% and a month-on-month uptick of 3.76%. The average export prices also rose by 2.71% year-over-year and 0.41% month-over-month. While the export volume to Europe fell both year-on-year and month-on-month, exports to other regions gained substantial growth. This shift is primarily attributed to other regions leveraging low tariffs to sell Lysine products imported from China to Europe. After several months, the global market is expected to strike a new equilibrium.

The Explosive Impact of the Emerging AI Tool DeepSeek

DeepSeek has emerged as one of the hottest topics during the entire Spring Festival holiday.

Over the past three years, Mobao has dedicated itself to digitalization and intelligence across various sections of the feed industrial value chain, achieving improvements in job performance and management efficiency in some sections through the use of AI tools. The company is also exploring potential expansion into the field of grain storage and transportation.

In the earlier development, DSM announced a two-week suspension of its troubled Vitamin E production line in Europe, as market demand and transactions have continuously weakened amid high price levels. This decision trigged market turmoil, leading downstream players to adopt a skeptical stance regarding future Vitamin E price trends. Consequently, some purchasing managers from feed companies reached out to us in the last two days to inquire about anticipated Vitamin E price movements.

We utilized DeepSeek to analyze future trends in Vitamin E prices, and it provided results remarkably quickly. The conclusion drawn is that specific future trends in Vitamin E prices will hinge on inventory consumption, changes in market demand, and responses from other manufacturers. The current knowledge base of DeepSeek may lack sufficient data on the Vitamin E sector, resulting in conventional yet logical responses. We have come to understand that when there is insufficient data on a particular sector, DeepSeek engages in deep logical reasoning to reach a relatively comprehensive conclusion.

One thing is for sure; there is a possibility of another price increase in 98.5% L-Lysine HCL, given the supply-demand balance remains tight from a global market perspective.

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