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Hangzhou DE Mark Industrial Co Ltd
Will Tiamulin trigger a new wave of Price Rise?
Published: May 26, 2024
Source : Ronnick Fong, HANGZHOU DE MARK INDUSTRIAL CO LTD
Since May, the market price of Tiamulin has continued to rise. As of 24/May, it has risen by 11.3%. The average market price of Tiamulin is 167 yuan/kg, and the market inventory has been snapped up.
Judging from the chart, the continuous downward trend since Sept/2023 has been terminated.
Some industry analysts believe that the contraction of supply is the main factor affecting the rapid price rebound.
Tiamulin refers to Tiamulin Hydrogen Fumarate (CAS NO: 55297-95-5), an antibiotic widely used in swine and poultry, mainly to control infectious diseases, such as chronic respiratory disease in chickens, Mycoplasma hyopneumoniae (asthma) in swine, Actinobacillus pleuropneumonia, and Microsporidial dysentery, among others. Low doses as an additive can promote growth and improve feed conversion.
Under the dual pressure of weak demand and ample supply, the average market price of Tiamulin Fumarate has been constantly declining. On 01/May, the average market price of Tiamulin Fumarate decreased by 17.1% from the same period last year and by 38.7% from the same period in 2022. Considering production costs and corporate profits, the upstream manufacturers desire to raise prices. Measures such as production suspension, restriction, and signing limit have been constantly implemented, which is ultimately reflected in the rapid rebound of market prices.
Upstream manufacturers stabilize and raise prices by controlling delivery volume, a strategy that has received a positive response from the market, which in turn has driven the entire market upward. Backed by the continuous supply shrinking, the price of Tiamulin Fumarate is expected to continue rising in the short term.
Some industry analysts believe that the contraction of supply is the main factor affecting the rapid price rebound.
Tiamulin refers to Tiamulin Hydrogen Fumarate (CAS NO: 55297-95-5), an antibiotic widely used in swine and poultry, mainly to control infectious diseases, such as chronic respiratory disease in chickens, Mycoplasma hyopneumoniae (asthma) in swine, Actinobacillus pleuropneumonia, and Microsporidial dysentery, among others. Low doses as an additive can promote growth and improve feed conversion.
Under the dual pressure of weak demand and ample supply, the average market price of Tiamulin Fumarate has been constantly declining. On 01/May, the average market price of Tiamulin Fumarate decreased by 17.1% from the same period last year and by 38.7% from the same period in 2022. Considering production costs and corporate profits, the upstream manufacturers desire to raise prices. Measures such as production suspension, restriction, and signing limit have been constantly implemented, which is ultimately reflected in the rapid rebound of market prices.
Upstream manufacturers stabilize and raise prices by controlling delivery volume, a strategy that has received a positive response from the market, which in turn has driven the entire market upward. Backed by the continuous supply shrinking, the price of Tiamulin Fumarate is expected to continue rising in the short term.
Source
Ronnick Fong, HANGZHOU DE MARK INDUSTRIAL CO LTDRelated topics:
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Hangzhou DE Mark Industrial Co Ltd
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