Veterinary API Market Review

In November, the veterinary API market were experiencing volatile and stable. Except for the large fluctuation of Doxycycline Hydrochloride, the prices of most veterinary APIs were remaining stable. In November, Doxycycline hydrochloride first suppressed and then promoted, with a fluctuation range of 2.22%, making it the largest fluctuation range among all monitored varieties. On the 30th, Doxycycline hydrochloride market price was 598 yuan/kg, an increase of 1.36% month-on-month, slightly higher than the price of the same period last year.

The average market price of Florfenicol was 458 yuan/kg on Nov 30, also recorded as the highest this month. In November, Florfenicol increased by 1.33% month-on-month. However, approx. 16% lower than the same period last year.

Tilmicosin continued its consistent trend this year to plummet. At the end of November, the average market price was recorded as 345 yuan/kg, and going within a low price range.

The market had less news on the veterinary API market in November, which had no significant impact on the market in the short term. However, it is worth noting that some new production capacity is under active preparation, which will have a certain impact on the industry in the future. Since this year, many projects in the veterinary medicine industry have entered the stage of environmental publicity or large scale investment are expected. Many enterprises have completed the expansion of existing projects. The addition of new production capacity in the future will bring changes to the market structure.

In November the market demand veterinary APIs did not change significantly, but the downstream breeding quantity data deserves more attention. The year-on-year decline of pig stocks has narrowed again, and the fertile sow inventory has been positive for the first time this year. Pig stock has been recovering, and the poultry breeding market is improving.

In terms of environmental protection, heating began in November in the north of China, and the off-peak production scheme was implemented successively. However, compared with previous years, the off-peak production has not affected the veterinary API manufacturers.

On the whole, the veterinary API market in November was quiet calm, with relatively light trading, mainly based on practical demand. Before the pre-festival procurement period, the veterinary API market is most likely to maintain the current situation.

According to the relevant regulations of the State Council, the holiday date of the Spring Festival in 2020 is January 23-31. Usually around 15 days before and after the statutory holiday, there are a large number of job vacancies in the developed areas of the east as a result of migrant workers returning to hometowns.

At the same time, due to the increased probability of bad weather in winter, in order to ensure traffic safety, logistics companies in many provinces will implement outage measures. Generally, logistics companies in the northern region will shut down time, around January 2-5, while in the provinces such as Jiangsu, Zhejiang, Shanghai, Anhui, etc., it begin to shut down since January 08.

The experience of previous years indicates the logistics associated to import and export will encounter the problems such as shortage of drivers, congestion in/out of the warehouse, and rising costs. www.de-mark.com email: jzfong@de-mark.com