Market Analysis - Monthly Report - September&October, 2020 - Florfenicol

Annual Report - September, 2020

1.Overview of the Current Market Situation

In September 2020, the price of florfenicol stopped falling and rebounded, both due to market supply and exchange rate reasons. The details are as follows

① On the market side, in September, the demand from small and medium-sized customers in the florfenicol market recovered, distributors and factories had insufficient inventory, supply was tight, and prices rose.

② On the supply side, in September, Zhejiang Kangmu Pharmaceutical continued to suspend production and maintenance, which intensified the tight supply in the market. Although Anhui Ladbrokes Pharmaceuticals is producing normally, it is currently in the delivery stage due to the excessive amount of orders signed in the previous period. The new delivery date is expected to be in November, and it is currently in the suspension stage.

③The exchange rate, the RMB continued to appreciate in September, causing the US dollar price to be too high.

2.Price Offer and Factory Operation

3.Market Forecast

In summary, it is expected that in October 2020, due to the tight supply of florfenicol from the factory, market distributors will have few stocks, and the price will increase. The estimated price is 55USD~56USD/KG.

Annual Report - October, 2020

 Overview of the Current Market Situation

In October 2020, the price of florfenicol continued to rise due to tight market supply. The details are as follows

 ① On the market side, in October, customer demand in the domestic and foreign trade market for florfenicol picked up, with insufficient inventory, tight supply and rising prices.

② On the supply side, in October, Zhejiang Kangmu Pharmaceutical resumed its quotation, and delivery began in mid-October. At present, the delivery of pre-orders is the main one, and the new order delivery date is around December. ANHUI LIBERTY PHARMACEUTICAL and Jiangsu Hansyn Pharmaceutical are currently quoting normally.

③ Exchange rate, the ratio of RMB to USD continued to be low in October, and USD prices were high.

 Price Offer and Factory Operation

 Market Forecast

In summary, it is expected that in November 2020, due to the tight supply from the factory, the price of florfenicol will still fluctuate at a high level, but it is not expected to have a big increase. The price is expected to be 57-57.5USD/KG.