The price index of veterinary APIs: A review

The price index of veterinary APIs was 63.17-63.26-63.43-63.53 respectively for the four weeks of this month, from August 7th to 28th. It indicates that the overall veterinary drug raw material market was stable this month, with some varieties fluctuating and adjusting.

In the first half of the month, most categories, such as doxycycline hydrochloride and neomycin sulfate, showed oscillating adjustments; categories, such as florfenicol, amoxicillin, and doxycycline hydrochloride, showed weak market fluctuations. In the middle of the month, categories such as tylosin and tilmicosin continued their previous trend and prices remained firm. Later this month, categories such as sulfachloropyridazine sodium, spectinomycin, and lincomycin were in short supply, and inquiries increased.

There is limited room for improvement in market terminal demand, and the price trend is closely related to mainstream factories' adjustment of market strategies.

On the 28th, the average market price of florfenicol was 179 yuan/kg, down 4.80% from the previous month, recording a new historical low. Oversupply of products and fierce competition among manufacturers are the main reasons for the long-term sluggish operation of florfenicol. Competition may continue in the future, and the recent reduction in the operation of mainstream factory equipment will lead to a decrease in supply. There will be two opposite expectations on how the market price will evolve.

On the 27th, the average market price of doxycycline hydrochloride was 337 yuan/kg, down 1.75%, showing a slight decline. Under the strong willingness of upstream manufacturers to retain prices and the continuous stimulation with the news on the heat season maintenance, doxycycline hydrochloride showed a specific resistance to price fall.

The ample supply and over-cautious demand have led to a narrow downward loosening of the transaction price of tylosin tartrate, and the average price is just an inch away from the year's lowest. Mainstream factories have released price-supporting news and have taken supportive measures such as suspending production, limited signing and reducing peer bidding, which are supposed to stimulate the positive market response. Whether this market price, which has been at a really low level in recent years, continue to fall or not, will depend largely on the market demand.

At the same time, the price of tilmicosin has risen slightly, mainly due to the short supply of upstream raw materials.

Since August, the price of tiamulin has risen by 13.83%, hitting a new high record.

Mainstream factories have suspended production and restrained supply, resulting in a reduction in supply; at the same time, the pig farming industry continues to improve, positively impacting the market demand for tiamulin. Its market price is expected to continue to rise in the short term.

The vitamin market has been strong recently, particularly of Vitamin A, E and D3, their prices are extremely firm and showing a rapid upward trend. The prices of nicotinamide/niacin, calcium pantothenate, biotin and Vitamin K3 have also gone up to varying degrees, with increasing attention. Driven by the market atmosphere of some specific varieties, the vitamin market is expected to continue a steady upward trend in the future.

Reference price USD35/KG.

The current vitamin A market focuses on BASF's contract allocation scheme. Please refer to our earlier thread: https://lnkd.in/eKtE_z7h

The market price is running high with heat attention, while the downstream is in a solid wait-and-see sentiment. There, however, is still a robust bullish expectation. High-priced new orders are relatively rare. On the one hand, the suppliers remain reluctant to sell; on the other hand, the buyers are more cautious about the high price.

Reference price USD25/KG.

Affected by the BASF plant force majeure, domestic mainstream manufacturers have raised prices significantly and limited order-signing, the quotation range has expanded, and the market price index has been running firm.

NHU: Shandong plant Vitamin E production line was shut down in early July for maintenance;

ZMC: Vitamin E production line was shut down for maintenance from mid-July for 2 months;

Beisha Pharma: Vitamin E production line is to start maintenance at the end of August for 8-10 weeks.

BASF will not produce Vitamin A and E products by January 2025;

D-Calphan

Reference price: USD7.30/KG.

The leading manufacturers continued to stop reporting and signing, the replenishment in trade channel increased, the trading atmosphere warmed up, the price continued to rise slightly, and the market price index is going firm.

Vitamin K3 (MSB)

Reference price: USD16/KG.

The price rise of upstream raw materials has led to increased production costs. The mainstream manufacturers tend to raise prices, and the market quotation is going slightly firm.

The amino acid market is running steadily and weakly, with no noticeable improvement in downstream demand but remaining a solid wait-and-see sentiment. The terminal buyers still adopt a strategy of replenishing stocks based on rigid demand.

Lysine continues to diverge, with 98% lysine hydrochloride market prices remaining stable and 70% lysine sulfate market prices continuing a weak adjustment. Threonine prices are stable, with a prolonged delivery time. Methionine purchases and sales are ambient, with prices running weakly. Tryptophan and valine prices are temporarily stable, and transactions remain weak.

The pre-approval announcement on the environmental impact assessment (EIA) of NHU Shandong plant’s methionine integrated improvement project was published. After the completion of the transformation, the production capacity of solid methionine in the entire plant will reach 370,000 tons/year;

NHU: The Shandong plant is scheduled to overhaul for 6-7 weeks in Q3.

XMXYG Biochemical plans to switch threonine to valine production in Q3.