Veterinary raw materials market

After continuous declines, the decedent of the veterinary raw materials market has slowed down, and the overall downward trend seems to have stopped, with most products running weakly and steadily. In contrast,the products with prices remaining firm are Erythromycin Thiocyanate and Amoxicillin. Considering the production costs in upstream factories, some products have been oversold. Trade channels have been watching with the money hold in hand, the market seems to have no reason for further bearish.

Since the drop accelerating in the 4Q of 2021, it has fallen to below CNY300/kg, down another 13% from last month. Weaker-than-expected demand and continued price-cut promotions are critical reasons for the continued sharp setback in Florfenicol. However, there exists an expectation for recovery in downstream demand, so with the support of costs, though the possibility that florfenicol price will continue to fall will still exist, and price fixes are unlike in the short-term,but the single drop will narrow.

Amoxicillin prices rose by 2.5% in the first quarter of 2023. Overall production capacity did not increase, the share of exports increased, and prices were strongly supported. Price rose to CNY275-280/kg in April, EXW quotation remained at this high level in May, and the trend keeps upwards.

The price fell below CNY400/kg since March, the market price continued to go down and is now consolidating around CNY350/kg. In terms of the current supply and demand situation, the initiative lies with the buyer, but the buyers are generally on the sidelines and cautious in their purchases. No worry and over-concerns are needed to purchase for immediate demand. However, the mainstream factories stopped quoting prices last week in an attempt to regain market dominance.

Tylosin maintained a price level in May same as at the end of April. In the second half of May, the manufacturer increased the ex-factory price by about CNY10-15 kg.

Does it mean that tylosin products will end their decline and start to rebound? Market analysts believe that the cost support is the excuse for manufacturers to raise prices; it still needs to be determined whether or not the downstream demand side can accept, whether or not such an increase has sustainability.

First of all, the primary condition of the current market is that supply is more surplus than demand, which is difficult to change fundamentally for a short while, and the bearish pig price is impossible to stimulate the demand for the product. Secondly, the market as a whole is weak, the demand side is generally bearish and there is no impulse to take a bottom.

Hvsen Biotech said in a performance presentation on May 9, that the company's first phase of tylosin API project capacity (1,000 tons/a) is gradually improving, product quality is stable, but the current cost is comparison high.

The price trend of tilmicosin and tilmicosin phosphate, produced with Tylosin as the raw materials, is basically the same.

The vitamin market basically showed a stable situation since the bottoming out last month, with a narrowing of the amplitude, as news of production shutdowns (vitamin E, A and B2) and price increases (calcium pantothenate and niacin) resulted in upward price changes for some varieties. It is worth watching whether the upward price movement of a few varieties will drive the overall vitamin market as demand is not high during the peak season.

The current reference quotation is CNY85-88/KG, which continues to climb down since hitting a record low last month. Under the support of high costs, factories have strengthened their price-raising mentality.

Recently Adisseo said at a performance presentation that vitamin A showed a stable trend in early May and prices are expected to be in a slightly stable trend in 2023.

On May 23, ZMC raised the vitamin A powder price to CNY90/kg.

Reference price CNY70-72/kg.

The supply of the product is highly concentrated. Due to abnormal production in Europe. the supply is further concentrating towards China.

On May 15, NHU announced that its Shandong VE plant will shut down since min-June for 10 weeks for maintenance. On May 23 ZMC quoted VE powder at CNY76/kg. In the following day foreign manufacturers quoted CNY78/kg.

D-Calphan

Mainstream prices are at 120-130RMB/KG; upstream capacity is growing, while downstream demand is mediocre. The market price has rebounded slightly, with some factories raising the price to 130 yuan.

Vitamin K3 (MSB) export quotation range CNY80-90/kg.

Since bottoming out last month, the market has picked up. In recent days, manufacturers have stopped quoting and signing, and market transaction prices have gone up. As a result of the short supply of nicotinamide, a raw material of MNB, the cost of MNB increased. On May 22, some manufacturers raised their MNB price to CNY100/kg.

Other vitamins news highlights:

-Zhejiang Xinfu invested in the construction of vitamin B6 (2500MT/a) and D-biotin (120MT/a) projects, and expanded its VB5 production 12,000 tons/a

-Hunan Heyiyuan Biotech invested to reconstruct for the production of phytosterol and DL-a- tocopherol acetate (vitamin E).

-NHU plans to produce ibuprofen (5400MT/a) and pharmaceutical grade VB6 (700MT/ a) at its Shandong production base.

-Jiangsu Zhongzheng Biochem plans to invest in the production of D-calcium pantothenate (5000MT/a) by microbial fermentation process in Yancheng City.

-Hubei Goto Biopharm started construction of VD3 project (20000MT/a), by using plant based raw materials. It’s an innovative achievement in VD3 production.

Exports of L-Lysine Hcl and L-Threonine fell sharply by more than 25% year-on-year during Jan-Apr 2023, indicating an overall weakening of the overseas amino acid market. The domestic market will likely become even weaker in the latter part of the year due to lowering farming efficiency and reduced feed demand. The production/supply side took the opportunity to advance the production-cut or overhaul schedule in May-June.

L-Lysine HCL: CNY8600-9000/MT
L-lysine Sulfate: CNY5100-5600/MT
DL-Methionine: CNY16600-17200/MT
L-Threonine:CNY10300-10700/MT
L-Valine:CNY25-27/KG
L-Tryptophan:CNY63-66/KG

The ban of antibiotics as growth promoters (AGPs) in animal feed in many countries and the demand for natural alternatives have increased interest in essential oils in recent years.

3 Essendis is a protected compound product containing plant essential oils specially developed for animal use. It has triple functions of antibacterial, anti-inflammatory and growth promotion.

Improving pet food digestibility does not need to be a challenge.

Our supply of Yucca schidigera extract provides such a solution for both its health and environmental benefits.

Yucca schidigera is rich in steroidal saponins

Saponins can bind to ammonia to make a saponin-ammonia substance unabsorbed and finally expelled in the faeces and urine. That’s why Yucca schidigera extract can help reduce ammonia concentration and odour in faeces and urine. It is a considerable function of the product. In addition, Yucca schidigera extract is proven beneficial in treating arthritis and other inflammatory conditions.