APIs MARKET - Vitamin Market

The statutory Spring Festival holiday of 2022 is from January 31 to February 7.

Positive cases were reported from time to time across the country. In particular, the Omicron variant strain does not have an apparent symptom and spreads rapidly. Many county-level governments adopt excessive pandemic prevention policies. This forces migrant workers to return to their hometowns ahead of schedule, resulting in the disruption of the everyday activities of production and logistics enterprises and increasingly lightness of the market atmosphere, plus shrunk transactions. According to the China Veterinary Drug and Feed Trading Center statistics, the prices of most veterinary active pharmaceutical ingredients (APIs) have remained stable. In contrast, the market prices of the benchmark products florfenicol and doxycycline hydrochloride continued to drop slightly.

During the Spring Festival holiday, production and business activities are traditionally stopped, and the market update has to wait until everyone returns to their posts. The date for the production and business gradually returns to normal, is usually after the Lantern Festival dated February 15.

Market prices continued to fall. Manufacturers and traders offers remain upside-down. The continuous decline in transaction prices has dealt a constant blow to market confidence, leading to a further downward trend in the market.

Based on the market situation from 2018 to 2021, it can be roughly estimated that its equilibrium line is at 490 yuan/KG, and this dip has not yet reached the lowest point of this year (about 520 yuan/KG). It is farther away from the equilibrium line. Although the manufacturers are under cost pressure, most of them have not been affected by the northern environmental protection and the Winter Olympics.

The supply is regular. The post-holiday recovery in market activity is likely to see a slight and short-time rebound, with an overall forecast to drop to the lowest point in 2022 by May.

In addition to human use, Doxycycline is the second-largest broad-spectrum antibacterial drug for veterinary use. The price of Doxycycline has remained high in the past two years, but it has not seriously affected the demand. The reason is because of its excellent performance in antibacterial, anti-mycoplasma and anti-inflammatory.

The lucrative profits of doxycycline API have attracted the leading companies and external funds to remain optimistic about the future, increase investment and expand production capacity. 2022 will be a year of explosive growth in doxycycline production capacity. According to incomplete statistics, six projects have already started or are under a plan in 2021 with a total capacity of 10000 tonnes.

The release of production capacity is bound to considerably alleviate the current tight supply of doxycycline, intensify market competition, and possibly lead to excessive production, resulting in a rapid decline in prices. The industry also ushered in a violent wash.

The supply of mainstream production plants is normal, and the price has been steadily declining recently, and the room for bargaining has increased.

For price quotations and trends of other veterinary APIs, or ready inquiries, welcome to contact us.

The vitamin market is flat, and manufacturers insist on high-cost pressures and raise prices. However, the domestic demand side and the trade link are weak. In addition to the inventory pressure of stocking early in the trade link, they are willing to sell goods at a lower price. Only calcium pantothenate price is firm in this issue, but many uncertain factors need to be handled.

Please feel free to contact us if you have any other vitamin products enquiries.