The API Market in 2023 Amid Global Challenges

Looking back to the year 2023, the overall API market collapsed. The scarring effect left by the pandemic is hard to fade away completely; the global economy is facing downward pressure, the domestic livestock industry is in a downturn, and the prices of veterinary APIs continue to bottom out, hitting record lows.

As the China Veterinary Medicine and Feed Trading Centre (CVMFTC) monitored, the VPi index for four weeks in January was 63.95, 63.41, 63.30 and 63.23. respectively. Veterinary API prices continue to be low to stable. In the early and middle of the month, tylosin tartrate, tilmicosin, tiamulin and doxycycline appeared to varying degrees of decline; after the mid-month, except for tylosin tartrate appearing a slight fall, the mainstream categories of prices across the board rebounded comprehensively and tended to be stable; neomycin, colistin and other varieties, the market attention is improving.

Stepping into January, the Spring Festival stocking or positioning by taking advantage of the low price in the middle and lower reaches of the market, the market was becoming more active than the days before New Year's Day. Still, no price hike phenomenon was observed.

At the beginning of the month, due to seasonal cost increases in upstream raw materials, superimposed on the release of news from some mainstream factories, the quotation increased to test the market. Meanwhile, the mainstream factory inventory pressure still exists. When the Spring Festival holiday approaches, there is a negative impact from the logistics, plus the uncertainty of the international and domestic market conditions, the circulation of the market reserve process is weak, and the market is still in strong bearish sentiment.

Mainstream factories are in sufficient supply; the quotation is loosening high; trade channels pushed shipments to reduce pressure, and prices in some areas were trying downward.

Reference price: CNY330/KG.

Mainstream factory supply is stable, with negotiable prices; the supply sources and brand numbers are increasing, the competition is becoming fierce, trade channels loosen the quotation for shipments, and the market price index is going stable and weak.

Tylosin and other "pig-raising" veterinary drug APIs continued the trend; the average market price declined. Tylosin tartrate and tilmicosin fell by 2.56% and 0.99%, respectively. Weak market confidence and price cuts in the upper and middle reaches of the market to clear inventory were the main reasons for the price descending. The downward space may be limited in the short term, with weak shock.

The overall domestic vitamin market is stable and getting more vital; the mainstream factories of various categories have increased their willingness to support prices; coupled with the strong demand for pre-holiday stocking, the market trading has improved, and prices were supported. Most vitamins, except niacin, calcium pantothenate, choline chloride, vitamin B12, folic acid, biotin, etc., are of deep concern. Mainstream factories must consider continuing to raise quotations to stimulate the market and prepare for the stocking market before the Chinese New Year holiday.

Reference price CNY75-80/KG

Affected by the safety accident in Xiamen Kingdomway (see our LINKEDIN report on 11 January), as well as the failure of a European producer to resume production smoothly, manufactories raised the quotation one after another, the market purchase and sales improved, and even some European buyers are already considering orders for Q2 and later season, due to the Red Sea crisis, the supply of low-priced goods has decreased, and the transaction price continued to go up.

Reference price CNY61-68/KG

The news was released one after another that the factory increased prices and stopped quotation, the market has a solid wait-and-see, the market price index is stable and strong, and the market attention is high.

NHU Shandong VE plant scheduled to start overhauling in mid-January for eight weeks;

ZMC Changhai company plans to overhaul for six weeks in February. Starting in the first half of the month, the price was raised to CNY68/KG.

January 8, DSM - Meiyifen increased vitamin E 50% price to CNY68/KG. Vitamin E began a global simultaneous price increase.

On January 24, BASF led the rally, raising the price up to CNY78/KG.

Reference price: CNY55-60/KG

There are frequent actions such as factories raising prices and stopping quotations.  Market enquiry and trading have also been active, and the price is firm.

MSB mainstream price 76-82 CNY/KG

Affected by the raw material shortage, insufficient production supply, customers collectively requesting supply, etc, VK3 delivery remains tight. Uruguayan producers are short of raw materials, and Turkish producers have raised prices sharply; VK3 prices recovered from the bottom and rose steadily. 

NHU Vitamin K3's new project is publicised for environmental impact assessment (EIA); production capacity in the first phase is 1000MT/a.

The amino acid market continued to run weakly; the inquiry and transaction were light, only the methionine quotation was stable, the factory showed an apparent willingness to support the prices, and the supply and demand presented a game situation. A tight supply of protein-feed raw materials has resulted in a promising market prospect for small varieties of amino acids.