APIs MARKET - Vitamins

According to monitoring data provided by the China Veterinary Medicine and Feed Trading Center, the price index of major veterinary APIs is operating smoothly with relatively little volatility in the market price.

Heat and humidity are unfriendly to the production of some varieties of APIs. Factories have recently arranged seasonal shutdowns for maintenance. It is expected to result in a tight supply of the related raw materials in the short term. Heavy rains and floods in northern China, particularly in Henan Province, has had a particular impact on production, storage and inland transportation.

The market price of Florfenicol is stable and strong, and the average price is approximately 25% higher than the same period last year. The supply is sufficient, and prices are negotiable. We estimate that mid-July to mid-September will be a peak season for production and supply, which will result in a continuous drop in market prices.

The market of Doxycycline Hydrochloride remains its previous trend, and the price continued to move up. The tightening of supply caused by the heat maintenance in summer is the main factor for the recent continued rise.

The quotations of mainstream factories, the transaction volume and the market prices have all remained stable.

The current vitamin market as a whole maintains a weak and stable operation. Affected by the deteriorating return from the pig and poultry breeding, market expectations from the demand side are pessimistic, and procurement continues to be sluggish. Overcapacity in the vitamin supply leads to fierce competition among suppliers. Being pressed with a high cost of raw materials, upstream manufacturers have a solid willingness to uphold prices; Domestic traders are trapped under pressure from inventory funds, bargaining transactions are widespread. The overall market demand is weak, with very low intention for a stock-up but a moderate purchase for a just-needed replenishment.
Such a weak and stable trend will maintain in the short term.

Affected by the excessive decline in pig and poultry farming profits, the market is temporarily replenished by the moderate quantity of the goods for ready demand, and prices continue to weaken. Most of the leading manufacturers of vitamin A are suspending production for maintenance.

Despite reports of severe flooding in Germany and the Netherlands, there is no apparent damage to VA production. Instead, it may have a short-term negative impact on logistics. It is not ruled out that the market supplier will take advantage of this opportunity to create public opinion and actions to raise prices.

At present, the domestic VE market price is stable.

On July 21, ZMC suspended quotation to the domestic market but did not mention export sales.

On July 23, DSM stopped quoting.

Influenced by the public opinion created by the market supplier, VE might be one of the very few vitamin products whose prices have probably strengthened between August and October.

The current market demand is weak, and the price is still crawling at the bottom. The production of this product is scattered, and new manufacturers are entering the supply ranks, and the suppliers have no market operation possibility. Our suggestion is to buy on-demand and keep a certain amount of inventory.