Prices of veterinary raw materials have jumped, supply and demand continue to be tight
After the New Year's Day, the veterinary drug raw material market is booming. The prices of many varieties have risen sharply in the short term, and the prices have reached new highs in the next year or even several years. Among the many varieties monitored by the China Veterinary Medicine and Feed Trading Center, Tilmicosin, tylosin tartrate and Tiamulin have performed strongly recently, changing the trend of decadence after African swine fever, and prices have risen continuously.
● Tilmicosin
On January 20, the average market price of Tilmicosin was 455 yuan/kg, an increase of 12.35% month-on-month and 34.62% year-on-year. After New Year's Day, in just 20 days, the average market price of Tilmicosin rose by 22.97%.
● Tylosin tartrate
On Wednesday, the average market price of tylosin tartrate was 318 yuan/kg, a month-on-month increase of 9.66% and a year-on-year increase of 32.5%. The price hit a new high since March 2019.
● Tiamulin
Tiamulin, a raw material for veterinary medicines, did not miss this wave of price increases. In this issue, the average market price of tiamulin was 332 yuan/kg, up 14.48% month-on-month and 26.23% year-on-year.
● DOXYCYCLINE HYDROCHLORIDE
After the new year, doxycycline hydrochloride, which has been silent for several months, was unwilling to be lonely and made waves again. On January 20, the average market price of doxycycline hydrochloride was 705 yuan/kg, an increase of 2.62% from the previous month. The average price of vegetarians once again exceeded 700.
Regarding the market outlook, the vast majority believe that the supply of veterinary raw materials will continue to be tight in the future, the prices will continue to rise, and the probability of falling within a period of time around the Spring Festival is low.
Some opinions on the recent sharp rise of veterinary raw materials
"Are you still in stock?" "Why the price has risen again"? "Out of stock, or out of stock"...This is the word that often appears in the author's WeChat group recently. Out of stock and price increases seem to become the norm in the industry after New Year's Day, and this truly reflects the current status of veterinary raw materials. .
The price of raw materials for veterinary drugs has risen sharply recently, which has attracted great attention in the industry and has become a hot topic in the industry. But to what extent have veterinary raw materials increased? Here we first look at a few data to facilitate our intuitive understanding of the recent price trends of veterinary raw materials.
The above picture is the price index chart of veterinary drug raw materials (VPi), which reflects the overall trend of veterinary drug raw materials market prices. From the recent trend of VPi, we can clearly see that after New Year's Day, the VPi has risen almost linearly, and the index has risen sharply. As of January 20, the VPi closed at 96.30, and the index rose 10.97% only on the 20th after New Year's Day.
The above table lists the rate of increase of some veterinary raw materials after New Year's Day. From the table, we can intuitively see that the prices of these veterinary raw materials have increased significantly after New Year's Day. Tiamulin increased by 24.34% in just 20 days after New Year’s Day. Tilmicosin and Tylosin tartrate both increased by more than 20% after New Year’s Day, while oxytetracycline and doxycycline hydrochloride, which increased the least, also rose. Over 6%.
Through the VPi index and the list, we have a clear and intuitive understanding of the recent rise in veterinary raw materials. Then what is the reason for the recent sharp rise in veterinary raw materials?
Regarding the recent collective surge in veterinary raw materials, analysts at the China Veterinary Drug Feed Trading Center believe that the epidemic and pre-holiday stocking play an important role.
Analysts pointed out that Hebei, the epicenter of the epidemic, is an important source of raw materials for animal husbandry and veterinary drugs in my country, especially Shijiazhuang, the epicenter of the epidemic. Under the policy of "external output", the outside cannot come in, the inside cannot go out, local production and logistics are not normal, resulting in an important part of the normal supply of veterinary raw materials, supply and demand imbalances, shortages have become the current norm, and the prices of veterinary raw materials have responded. And rise.
Secondly, as the new year approaches, pre-holiday stocking starts one after another, and downstream demand is strong. Recently, it is normal for some products to be out of supply, and prices continue to rise. Under the psychology of buying up and not buying down, middle and downstream users are even more urged to accelerate the pace of stocking. The contradiction between supply and demand is prominent.
Third, the fear of the epidemic and the deep impression of the extreme shortage of goods at the beginning of the year are undoubtedly affecting people's psychological changes. Although the epidemic in Hebei has been eased recently, based on the summary of past experience, midstream and downstream procurement Merchants have consciously or unconsciously increased their procurement of goods, and downstream demand has increased, which has aggravated the current tense supply-demand relationship.
Finally, in recent years, air pollution prevention and control and the resulting limited production and staggered production in some industries have become the norm in winter in the northern region. Shandong, Hebei, and Henan in the northern region are precisely the important veterinary raw materials production areas in China. Production companies in the region have adopted limited production and staggered production due to environmental protection factors, making the already inadequate supply even worse.
On the one hand, there is a decrease in supply and poor logistics. On the other hand, there is an increase in demand, even more than in previous years. Supply and demand are imbalanced and contradictions are prominent. It is not surprising that raw materials for veterinary drugs are out of stock and prices are rising.
