Raw materials soared by 30%, animal health companies are facing severe tests, or veterinary drugs will increase in price?

Beleaguered on all sides, following the surge in feed raw materials such as vitamins, raw materials for veterinary drugs have also skyrocketed, and the API industry has ushered in a major reshuffle.

Raw materials are soaring, animal health companies are facing severe tests, or veterinary drugs will increase in price?

With the continuation and escalation of the national environmental protection rectification action, the "environmental protection wind" in various places has become more and more intense. A few days ago, 10 ministries and commissions including the Ministry of Environmental Protection and the National Development and Reform Commission, together with the governments of 6 provinces (municipalities) including Beijing and Hebei, issued the "Action Plan for Comprehensive Control of Air Pollution in the Autumn and Winter of 2017-2018 in Beijing-Tianjin-Hebei and Surrounding Areas" (referred to as the "Plan"), especially Emphasis: Pharmaceutical companies involved in the production of APIs will, in principle, suspend production if they violate the discharge process.

It is reported that at the end of last year, raw material drug manufacturers such as CSPC and North China Pharmaceutical were ordered to suspend production due to non-compliance with environmental protection standards and suffered heavy losses. An industry insider said: "Many raw material pharmaceutical companies are major polluters. Such a move is bound to shut down a number of factories. The downstream may face shortages and supply from time to time, but it is difficult for terminal drugs to increase prices."

Since July, most of the basic raw materials have skyrocketed without warning, the overall increase has reached 30%, and some raw materials such as vitamin C have increased by more than 100%. Worse than the skyrocketing prices, some raw materials have stopped supplying in the market, which directly affects the operation of downstream animal health companies and can only temporarily consume inventory.

Market analysis of raw materials for veterinary drug feed, raw materials are in short supply

It is understood that at this stage, for example, formic acid used to make mebendazole was only 3,250 yuan/kg in Hebei last year, and this year has reached 6,000 yuan/kg; vitamin C has risen from more than 20 yuan/kg to more than 60 yuan/kg; baking soda has increased from 1,800 yuan/kg. ~1900 yuan/ton rose to 2300~2400 yuan/ton, and citric acid rose from 5000 yuan/ton to 6000~7000 yuan/ton.

In addition, antibiotic drugs are also facing a severe situation of out of stock in the market and soaring prices. Currently, florfenicol is out of stock. Amoxicillin was 130 yuan/kg in the same period last year, and now it has risen to 165 yuan/kg.

Broad-spectrum antibiotics: affected by environmental protection and other factors, some manufacturers of the main intermediates penicillin industrial salt, amoxicillin, and ampicillin continued to stop reporting, the market supply situation has increased but not decreased, and the prices of similar products have risen simultaneously. The level of trading volume has increased to support, and the price has room to continue to improve. Focus on it.

Amide alcohols: Some manufacturers of florfenicol and thiamphenicol stopped receiving orders and continued to increase their quotations. Some manufacturers have entered a state of limited production or discontinued production, and because of the peak sales season, the supply capacity is insufficient, and the market price is even higher, so we should pay attention.

Tetracyclines: oxytetracycline and oxytetracycline hydrochloride. Affected by environmental pressure, Jianmin entered the production shutdown process. It is reported that production will be completely shut down in October, and production is expected to resume in 2018. The supply of Huashu and Jianmin is tight, adding to the active market in this sector, and the prices continue to rise. According to this market situation, doxycycline hydrochloride (doxycycline) will also be affected, increase the strength of the rise, and focus on it.

Macrolides: Due to environmental protection reasons, the price of erythromycin thiocyanate ushered in a slight increase some time ago. According to the market reaction, there are signs of stocking up and manufacturers stop reporting, and the current price is in a state of order. Tylosin, tilmicosin and other varieties have been adjusted by environmental protection and some manufacturers' sales policies in the early stage, and the prices have been rising recently. Please pay attention to the later trend.

Aminoglycosides: The price of apramycin is stable; the supply of neomycin sulfate is normal, and the market trend is weak in the early stage, and it has returned to stability. The price of gentamicin sulfate was stable. Streptomycin sulfate, the supply is small, the previous export contract is being implemented, and it is difficult to supply, according to this, the domestic purchase volume increases and the price rises rapidly.

Sulfonamides: Due to the high price of upstream raw materials for a long time, the prices of sulfonamides are running at a high level. Zhejiang Huangyan Veterinary Pharmaceutical Factory has completely stopped production in July due to environmental protection reasons, and the prices of its main sulfonamides such as sulfaquinoline sodium and sulfamethoxine (sodium) continue to rise.

Quinolones: Enrofloxacin hydrochloride, the main domestic manufacturers are Guobang and Langbo, both of which are located in the key environmental protection supervision areas. The production has been reduced, and the price has been steadily increasing in the early stage.

Antipyretic and analgesic categories: Due to the shortage of upstream raw materials and the large number of export orders, Analgin's production decreased, the supply was insufficient, and the market circulation price increased. Paracetamol has been affected by the recent supply and demand changes in the market, and the price has risen. In the market of antipyretic and analgesic varieties, due to the increase in the price of upstream raw materials and the pressure of environmental protection, the market price has been raised. Hebei Jiheng Analgin, Aminopyrine, and Paracetamol have stopped reporting and rising. I hope everyone stay tuned. Taurine prices remain high.