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Hangzhou DE Mark Industrial Co Ltd - China

Hangzhou DE Mark Industrial Co Ltd
Hangzhou DE Mark Industrial Co Ltd
We will be present at:
March 8, 2023 to March 10, 2023
Bangkok, Thailand

APIs market remained stable

Date of publication : 12/5/2022
Company : Hangzhou DE Mark Industrial Co Ltd
Source : Ronnick Fong. Issue No.: 2022011, Date: November 30, 2022

The APIs market in November generally remained stable, continuing the lingering trend since August. Supply-side costs are rising, while deals are constrained by downstream demand. Downstream purchases are still subject to the actual need, and there needs more confidence and willingness to stock up and build the position. The supply-demand game has been held this month. It is expected that the recent market trend will continue oscillation and consolidation and need a solid new factor to break the current balance. 

The COVID-19 epidemic has become frequent from point to point. There has been no relaxation in the prevention and control policy, with domestic cities expressing anger and protests against the zero policy. As the north of China enters a period of winter air pollution control, the negative impact on production and supply will turn again evident.

Florfenicol

Florfenicol always draws high market attention as it plays a vital role in the pig breeding industry.

The reference price is CNY465/kg.

The quotations from factories this month remain steady and slightly lower than last, down 1.06% MoM and down 33.10% YoY. The current slight price fluctuation is related to the change in pig prices in China. It is estimate the market will be slightly oscillating in the short term.

Florfenicol

Doxycycline HCl

Prices have fallen considerably since the start of the year from their highs, mainly because the market's supply side has gradually recovered this year, and downstream demand has yet to catch up with it closely to stop descending.  Since October, the transaction has been hovering around CNY525/KG, and the spot supply in the market appears to be tight. The mainstream factory delivery is delayed, the execution of the contract is slow. From these aspects, we see that the cost and small profit margin support doxycycline price, and factories have raised their ex-work prices. We still suggest building up positions in batches at low prices.

Doxycycline HCl

Tylosin/Tilmicosin

Factory quotation is CNY305/KG.

Pig prices are still at a high level, and the market heat for the related products remains unabated. Tylosin Tartrate is currently in tight supply with an extended delivery lead time. Coupled with inflation expectations, the tylosin market is estimated to stay firm.

Tylosin/Tilmicosin

Tilmicosin price rose because it uses Tylosin Tartrate as the primary raw material. Prices of related products such as Tiamulin and Tylvalosin show varying degrees of stability to a slight uptrend.

VITAMIN MARKET

The domestic vitamin market has been running weakly and steadily for a few months. The current market situation can be summarized as follows:

  1. Factories generally operate normally.
  2. Domestic dealers, trapped by inventory and financial pressures, are selling aggressively.
  3. Just-demand purchases mainly dominate the downstream market.


At a time when an uncertain outlook of the domestic economy and the COVID-19 epidemic situation, rational demand cannot drive prices, and factory price increases cannot bring about a panic rush and solid expectations for price rise.

We suggest you pay attention to the varieties with more concentrated production capacity and the production and delivery status of mainstream factories because some mainstream products, such as vitamin A and vitamin E, have been consolidating at the bottom range for a long time. We must prepare to prevent the price from being triggered upwards at any time after entering winter.

Vitamin A

The price of vitamin A has been low for a few months. Under cost pressure, producers are aggressively raising prices. However, demand for feed additives caused by rising pig prices has not yet been reflected in the additives market. Vitamin A market price may maintain a bottom run within the year if no event that exceeds market expectations occurs. Adisseo said on its interactive platform on October 27 that it had decided to reduce VA production to control and optimize costs temporarily. On November 21, DSM decided to suspend production at its Swiss factory for two months, starting on January 2. They intend to cut production to stop the price decline. So far, no dramatic market reaction from the market has been observed.

Vitamin A

Vitamin E

Reference quotation: CNY82/KG.

The 4Q to the 1Q is the peak demand season for vitamin E, and prices tend to rise briefly.

DSM's Swiss plant has not been able to resume production as planned, nor has there been a confirmed date for resumption since it ceased production at the end of July. Coupled with the natural gas supply disruption, the European vitamin market has begun to worry, and prices have started to disturb upwards, bringing strong expectations of price increases.

Vitamin E

DSM further announced a shutdown recently at its Swiss plant from January 2023 for two months will affect the supply of VE. The spring season for vitamin E is around the corner for the supply side.

D-Calphan

Mainstream price is CNY156-170/KG.

The price of D-Calphan is volatile a lot periodically. After experiencing a sharp decline in the early stage, the price tends to ease, and the overall cost is stable with a very slight fluctuation.

Pantothenate lactone, a raw material of D-calphan, is critical for the stability of the supply of calcium pantothenate. Nearly 60% of China's production capacity is affected by environmental protection policies as this raw material is produced by a chemical process. It is necessary to pay attention to the updates of winter air pollution control in northern China.

D-Calphan

Vitamin K3(MSB)

The reference price of K3(MSB)is CNY165-172/KG.

The price still maintains the same high level as last month. Many manufacturers are strongly willing to raise prices because the price increase driven by the price increase of imported chromium ore has not yet been effectively solved in a short time.

Vitamin K3(MSB)

AMINO ACIDS MARKET

The epidemic's impact on logistics and the high price of corn and soybean meal supported the amino acid market. New corn grain in Northeast China is being put to market, with the purchase price being higher than expected, strengthening the market confidence. At the same time, the new production capacity negatively correlates with the reallocation of market share and prices. But China amino acids are rapidly globalizing their supply chain.  

With the Spring Festival holiday approaching, stockpiling is underway as well as to avoid the adverse impact on logistics from the combination of Covid control measures and the winter cold spells.

L-Lysine

The current mainstream factory price of 98.5% L-lysine HCL is CNY9300/MT.

L-Threonine

The current mainstream price of L-Threonine is CNY9100/MT.

 

FEATURED PRODUCTS

MACLEAYA CORDATA EXTRACT 

Function:

1. Regulating the balance of intestinal flora and enhancing the body's resistance to disease.

2. Anti-inflammation, anti-oxidation, avoid energy loss, maintain the body in the best condition.

3. Promote growth, and improve animal production performance.

MACLEAYA CORDATA EXTRACT

Sanguinarine, the main component of Macleaya cordata. The research and field trials show that the Macleaya cordata extract has benefits such as significantly reducing mortalisation rate and promoting growth in pigs and poultry.

We supply

1---Macleaya Cordata Extract (Total Alkaloids 60%,Sangunarine 40%),and

2---OEM manufacturing of premix containing the extracts.

YUCCA SCHIDIGERA EXTRACT

Yucca schidigera extract helps improve animal food digestibility and allows the animals to benefit both in their health and living environment.

Yucca schidigera is rich in steroidal saponins. Saponins can bind to ammonia to make a saponin-ammonia substance unabsorbed and finally expelled in the faeces and urine.

YUCCA SCHIDIGERA EXTRACT

That’s why Yucca schidigera extract can help reduce ammonia concentration and odour in faeces and urine. It is a considerably beneficial function in the farming of swine, poultry and ruminants. In addition, Yucca schidigera extract is proven helpful in treating arthritis and other inflammatory conditions.  

We supply

1---Yucca powder containing Salsaponin 30% (by UV), and

2---Yucca Schidigera Extract containing Salsaponin 60% (by UV).

 
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