Market Analysis - Annual Report -April, 2020- Tiamulin Fumarate
Analyst: Murphy
1.Overview of the Current Market Situation
The price of Tiamulin Fumarate increased in April. In April, the supplier's operating rate was affected by the tightness of upstream raw materials. SUNNY stopped production for a few days in early April, and SHENGLI also reduced production accordingly. The delivery period of the two major manufacturers has become tight. JINGZHONG and VEYONG are in normal production and can be delivered on time. Due to the implementation of the internal production plan of WILLING, the production schedule of tiamulin fumarate is scheduled in mid-May. TAIYICIN and LUKANG are still discontinued.
Part of the international end user prepares stocks before the raw materials are restricted, and traders have almost no stocks. On the demand side, due to the global impact of the epidemic, some foreign end customers stopped production and reduced production, so demand was not high in April.
In addition, the price of pleuromutilin, an upstream raw material, has increased, so the price of Tiamulin Fumarate increased in April due to various factors.
2.Manufacturer Price and Production Situation Statistics
| Factory Name |
Quotation (USD/KG) |
Change (from last week) |
Plant capacity |
| SHENGLI |
30 |
Increase |
1200MT/Year |
| SUNNY |
29 |
Stable |
800MT/Year |
| VEYONG |
28.5 |
Stable |
500MT/Year |
| JINGZHONG |
27.5 |
Increase |
300MT/Year |
| TIANXIANG |
28.5 |
Increase |
300MT/Year |
3.Forecast of the Future Market Situation
| Influential Factors |
Overview |
Price Trend |
| Factory operating rate, inventory and cargo situation |
In May, the factory started to work normally, and SUNNY and Shengli will also limit production due to upstream raw material supply problems. The factory is not expected to have an order backlog. The output is mainly supplied to domestic trade, and the supply of foreign trade is tightened. |
Increase |
| Market Demand |
The market demand is weak, the market rose last month, some terminals are stocked, and the international market is affected by the epidemic, so it is predicted that demand will be bad in May. |
Decline |
| Market Sentiment |
Prices generally rose slightly, buyers actively paid attention to the market trend, and the intention of stocking was general. |
Stable |
| Factory determination to raise prices |
The factory price increase mentality is strong. Due to the influence of upstream raw materials, prices have to be raised. |
Increase |
| Upstream raw materials |
Due to the impact of the epidemic, the price of the upstream raw material pleuromutilin has increased, and it is expected to continue until the middle and late May. The purchase of ethyl mercaptan is restricted, and the supply is unstable. |
Increase |
| Industry event |
/ |
/ |
| In conclusion |
In May, the factory operating rate is normal, and there may be a small-scale production cut. Some international end users have already stocked up, but there is still a certain demand. The price of upstream raw material truncated pleuromutilin is at a high level, and the price is still rising. The upstream raw material ethanethiol is limited in purchase, and supply is tight. Therefore, the price of tiamulin fumarate is expected to rise in May. SHENGLI is expected to raise prices due to tight shipments. VEYONG, TIANXIANG, and YUMING are expected to raise prices due to rising raw materials. |
Stable |
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