APIs Market Review

The demand for "Golden September and Silver October" fell below expectations. In September, the market exhibited signs of a significant recovery, with tentative rebounds. However, in October, the overall market trend shifted from strength to weakness, entering a phase of volatility. The factors driving price increases from the supply side are gradually diminishing. Categories that were previously strong have experienced compensatory declines as the market moved from divergence to consensus, indicating an overall downward trend. The supply strategies of major manufacturers have not undergone significant changes, with price support remaining the primary approach. Midstream and downstream players are purchasing with caution, leading to limited support from the demand side. Categories such as Mequinodox, Tylosin Tartrate, Tilmicosin, Oxytetracycline, and Oxytetracycline Hydrochloride continue to garner the most market attention. In contrast, weaker categories like Chlortetracycline HCL have seen slight price adjustments, although the extent of these changes is limited. Under the price support from manufacturers, the price of Neomycin Sulfate appears to be stronger. At present, the market supply and demand are in a short-term equilibrium, lacking sufficient momentum for a significant upturn or downturn. It is anticipated that the veterinary APIs market will persist in a weak and fluctuating trend in the near term.

On the 29th, the average market price for florfenicol was recorded at 174 yuan/kg, indicating a month-on-month decrease of 0.57% and a total decline of 13.43% for the year. Although prices saw a slight increase in September, they have been on a downward trend in October, demonstrating weak upward momentum. The primary reason for the softness in the florfenicol market is the imbalance between supply and demand. On the supply side, overcapacity remains a persistent issue and continues to grow, while demand, limited by the downturn in the farming sector, is restricted to only essential purchases.

In light of the oversupply situation, manufacturers often resort to price wars to secure market share, making low-price sales a prevalent strategy. This practice has gradually driven down transaction prices, resulting in a widespread wait-and-see attitude among downstream participants, who exhibit little inclination to pursue rising prices. As a result, the market is prone to a detrimental cycle of "stagnation following price increases, and declines following stagnation." It is anticipated that the market will continue to bottom out in the short term, necessitating patience until a clear upward turning point is reached.

Recently, major manufacturing plants have been facing stringent delivery timelines, with prior orders being processed in a sequential manner. Market prices are currently at historically low levels, and traders are increasingly eager to replenish their stocks at these low prices. Consequently, the market price index has exhibited a volatile yet strengthening trend during this period.

On the 29th, the market price for Doxycycline, which performed robustly in September, was recorded at 350 yuan/kg, reflecting a decrease of 0.97% month-over-month. Despite proactive price-support initiatives from manufacturers, the ongoing weakness in downstream breeding demand has not provided adequate support for the price.

Additionally, earlier optimistic expectations—fueled by stringent supply control from manufacturers and rising costs—have mostly been absorbed. As a result of these various factors, the Doxycycline market has entered a phase of "compensatory decline."

On the 29th, the average market price of Tylosin Tartrate reached 305 yuan/kg, marking an increase of 1.67% month-over-month and a remarkable surge of 40.55% since the beginning of the year, achieving a new annual peak. Its related product, Tilmicosin, also demonstrated strong performance, with an average market price of 379 yuan/kg, reflecting a 26.1% increase since the year's start. Currently, leading manufacturers are maintaining a strong position on price support, and the release of previously suspended quotation messages has indicated a tightening of spot market resources. Downstream inquiries and procurement activities have seen a significant uptick, while traders' eagerness to invest in strong varieties has further exacerbated supply constraints.

The vitamin market is still functioning under weak conditions, characterized by a generally subdued trading environment. VB6 and VD3: In spite of manufacturers' attempts to support prices, the market reaction has been lackluster, and the downward price trend persists unabated. VC, Niacinamide, and 2% Biotin: These markets are currently stable, with participants primarily adopting a wait-and-see approach. Choline Chloride: The weak stability in the upstream ethylene oxide price has resulted in slightly lower factory quotations and a minor downward adjustment in market offers. Folic Acid: The majority of producers have either halted quotations or are actively supporting prices, which has led to moderately firmer offers in trading channels. Other Vitamins: Most categories are experiencing weak but steady trading, accompanied by correspondingly low levels of procurement and sales activity.

In the near term, it is anticipated that there will be no significant change in the supply and demand dynamics of the vitamin market.

Several leading vitamin A manufacturers have halted their price quotations. The stock of older products is diminishing, the transaction prices staged a robust rebound, which lead to the market price becoming firm.

A number of prominent vitamin E manufacturers are maintaining their prices, resulting in a rebound after a previous market decline. There has been a notable increase in inquiries and transactions, and the strategy of elevating their export prices has further reinforced the ongoing upward trend in the vitamin E market.

Reports indicate that major calcium pantothenate manufacturers are either increasing prices or suspending their quotations. The market's transaction performance is encouraging, and the market price index is operating steadily.

Vitamin K3 manufacturers have slightly reduced their prices in the context of generally low trading activity, with the market price index experiencing minor fluctuations.

The amino acid market is marked by slight fluctuations and a dominant wait-and-see mentality, with purchases restricted to essential requirements. 

In the lysine sector, producer offers remain stable or slightly softer. The gradual introduction of 80% lysine and the availability of lower-priced new corn have further reduced trading activity, leading end-users to take a careful wait-and-see stance. 

The methionine market is experiencing weak mainstream pricing amidst strong bearish sentiment, resulting in low actual inquiry and transaction volumes. 

For threonine, major producers are maintaining steady quotes; factories are encouraging bundled sales with lysine to reduce existing inventories. 

Valine prices are stable, with some producers ceasing quotes, yet terminal restocking interest is still low. 

Tryptophan prices have reached historic lows due to an oversupply and lack of buying interest, limiting terminal purchases to cautious, need-based restocking.

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