The opinion comes from SINA website
China Animal Pharmaceutical and Feed Trading Center's monitoring data shows that on December 13th, the average market price of florfenicol was 210 yuan/kg, up 0.96% from the previous month, but down 52.27% from the same period last year.
Florfenicol, which has been falling for a year, has finally stopped falling and rebounded slightly. Analysts from the China Animal Pharmaceutical and Feed Trading Center believe that this rebound is both unexpected and expected.
As a result of the overall weak market environment for animal drug raw materials, weak downstream demand for florfenicol, and the lack of market confidence, florfenicol did not have the external environment to initiate a rebound. Therefore, this rebound was somewhat unexpected for the market.
However, for florfenicol, which has been in a long-term downturn for more than a year and has fallen sharply, it was also expected to rebound at some point. Firstly, it has been falling for too long and has reached its bottom. Monitoring data from the China Animal Pharmaceutical and Feed Trading Center shows that since 2023, florfenicol has continued to fall solo, and as of December 13th, it had fallen by 51.50% compared to the beginning of the year, with prices dropping off a "cliff".
Secondly, cost support has strengthened. After a long period of decline, florfenicol prices have reached a historical low, greatly compressing the profit margins of upstream manufacturers, and even causing losses. Under the combined effect of cost and profit factors, upstream manufacturers have a strong desire to increase and raise prices.
Finally, supply has decreased. In the continuous game between florfenicol manufacturers, some production units have stopped working during the continuous downturn of florfenicol, reducing market supply and weakening the supply-demand contradiction.
Regarding future market prospects, we believe that this rebound in florfenicol is temporary and not sustainable. Against the backdrop of the extremely weak market demand, neither the overall weakness of the animal pharmaceutical and feed raw materials market nor the weak supply-demand situation of florfenicol itself supports a long and significant rebound in florfenicol. We tend to believe that florfenicol will remain in a fluctuating state in the short term, and there is even the possibility of a new low being reached.