Jinan Zhuocheng Bio-Tech Co., Ltd.

China's amoxicillin veterinary active pharmaceutical ingredient (API) market continued to operate at relatively low levels during the first half of 2026, as ample supply, sluggish downstream demand, and intensified market competition weighed on pricing. Industry participants believe that the fundamental supply-demand imbalance is unlikely to change significantly in the near term, suggesting limited room for a substantial price rebound in the second half of the year.

According to data from the Asia-Pacific Yihe Data Analysis Institute, amoxicillin prices fluctuated within a narrow range during the first six months of 2026. Prices climbed to around RMB 170/kg in January, rose again to approximately RMB 180/kg in late February and early March, and then gradually retreated. During the second quarter, the market entered a downward trend with only a brief rebound in mid-May before falling back to around RMB 170/kg in June. Some brands were reportedly traded near RMB 160/kg.

The current market situation follows a significant correction that began in 2025. Market data show that average monthly amoxicillin prices declined from RMB 239/kg in January 2025 to RMB 210/kg in June. By July 2025, transaction prices had fallen below RMB 180/kg, representing a decline of nearly 25% from the beginning of the year and more than 30% compared with the same period in 2024, reaching the lowest level recorded in the past five years.

On the international market, amoxicillin remains one of the most widely used antibiotic APIs globally. Between 2016 and 2021, China's amoxicillin API exports remained relatively stable, with export revenues averaging approximately USD 280 million annually and export volumes around 12,000 metric tons. In 2023, export prices surged to a record high of USD 33.8/kg, driven primarily by rising raw material and production costs. However, market conditions shifted in 2025, with average export prices falling by more than 20% from their peak levels, reducing total annual export value to approximately USD 446 million.

Industry analysts attribute the ongoing pricing pressure primarily to persistent oversupply and weak downstream demand.

On the supply side, domestic production capacity continues to expand. Several manufacturers have increased output in recent years, resulting in abundant market availability. To accelerate cash flow and secure market share, some producers have adopted more aggressive pricing strategies, further intensifying competition.

Capacity expansion remains ongoing. In July 2025, Shanxi Shuangyan Pharmaceutical Co., Ltd. successfully passed GMP inspection for its amoxicillin API facility. In June 2026, Zhejiang Anglikang Pharmaceutical Co., Ltd. received application acceptance notices for both amoxicillin and ampicillin APIs, indicating additional production capacity may enter the market in the near future.

Demand-side recovery has been considerably slower. China's livestock and animal health sectors continue to recover gradually, while downstream customers generally maintain conservative purchasing strategies. Most buyers are adopting a "purchase-as-needed" approach and keeping inventories at low levels, limiting the market's ability to absorb higher-priced products.

Cost support has also weakened. Although chemical raw materials and energy prices continue to provide a certain level of cost support, downstream customers remain highly price-sensitive, restricting the transmission of rising production costs throughout the supply chain. In addition, international crude oil prices retreated sharply following the Iran–U.S. ceasefire agreement announced on June 18, easing cost pressures across the broader chemical and pharmaceutical sectors.

Meanwhile, developments in India have attracted industry attention. In January 2026, India's Directorate General of Foreign Trade (DGFT) introduced Minimum Import Price (MIP) requirements for Penicillin G Potassium, 6-APA, and Amoxicillin. Combined with the country's Production Linked Incentive (PLI) program and RoDTEP export incentive scheme, the policy reflects India's ongoing efforts to strengthen its domestic API manufacturing sector and may influence future global market dynamics.

Despite current challenges, industry observers note that the downside risk for amoxicillin prices appears limited. Raw material costs continue to provide a pricing floor, while some manufacturers have implemented production controls and inventory management measures to stabilize market conditions. These actions may support short-term price recoveries in certain regions.

Looking ahead, the amoxicillin veterinary API market is expected to remain in a rebalancing phase throughout the second half of 2026. With supply remaining relatively abundant and demand recovering only gradually, prices are likely to fluctuate within a narrow range rather than experience a sustained upward trend. Market participants generally agree that a meaningful recovery in pricing will depend on further capacity rationalization, inventory reductions, and a stronger rebound in downstream demand.

For now, range-bound market conditions are expected to remain the dominant theme for China's amoxicillin veterinary API sector during the remainder of the year.