Can veterinary raw materials continue to rise after a high level of correction?


Recently, the veterinary raw material drug market has been operating in shocks. The supply side has been further improved, the supply has increased, the high-priced shipments have been slow, the downstream procurement has been cautious, the market price has been adjusted at a high level, and the trend of correction has become increasingly obvious.

The market price of veterinary drug raw materials is high, market transactions are generally weak, and rigid demand is the main factor, and the proportion of bargaining transactions has increased. The market transaction prices of florfenicol, doxycycline hydrochloride, tylosin, and tilmicosin phosphate have fallen broadly recently, but the supply capacity of the factory has not improved significantly, and the price support of the low range is acceptable. The market transactions of sulfonamides, quinolones, neomycin sulfate, and colistin sulfate are relatively strong, with strong price support.

Since the second half of the year, raw materials for veterinary drugs have been driven by the prices of coal, crude oil, natural gas, and liquefied petroleum gas from the cost side, superimposed on the impact of summer maintenance and industry power cuts, production costs have risen sharply, the prices of finished products have continued to rise as a whole, and the overall profitability of the supply chain has been relatively good. It is expected that the market will remain relatively prosperous. In the case of a slowdown in the demand-side growth rate, categories with significant downstream demand increase are preferred. On the supply side, focus on the competitive advantages of mainstream factories with scale advantages under the background of limited new production capacity and clearing of backward production capacity. The market share of mainstream factories is expected to continue to increase, and it is necessary to strengthen business circulation with them.