Jinan Zhuocheng Bio-Tech Co., Ltd.

As one of the most important aminoglycoside antibiotics used in the veterinary pharmaceutical sector, Neomycin Sulfate has experienced a complete price cycle in recent years—from sustained growth and market consolidation to an accelerated decline. Based on price movements from 2024 to 2026 and recent market developments, the product has now entered a low-price adjustment phase. Whether prices can stabilize will largely depend on changes in supply and downstream demand.

1. 2024: Tight Supply and Demand Drove Sustained Price Growth

2024 was a year of significant price increases for Neomycin Sulfate. The price started at approximately 130 in January and generally moved upward throughout the year, reaching 164 in August and climbing further to 167 in September, marking the highest level of the cycle.

Prices subsequently eased slightly, remaining within the 163–165 range from October through December.

Overall, prices increased from 130 to 167 during the year, representing a cumulative increase of approximately 28.5%. The strong upward movement reflected relatively robust downstream demand and comparatively limited supply capacity at the time.

China remains one of the world's major producers of Neomycin Sulfate and plays an important role in the global supply chain. The price increase in 2024 was supported by downstream veterinary pharmaceutical demand, while production schedules, capacity utilization, and inventory conditions on the supply side also contributed to market tightening.

2. 2025: Prices Entered a Volatile Downtrend

The market situation began to change in 2025.

The price started the year at approximately 160 and subsequently entered an overall downward trend, ending the year at around 155, representing an annual decline of approximately 3.1%.

However, the decline was not linear. From May to July, prices remained relatively stable at around 157. In October, prices fell to approximately 150 before recovering slightly, indicating that manufacturers still had some ability and willingness to support prices.

In July 2025, the market average price temporarily reached approximately 153, up around 2.0% month-on-month. With downstream demand showing no significant improvement, manufacturers attempted to stabilize the market through controlled shipments and firm quotations.

From an industry perspective, Neomycin Sulfate is primarily produced through microbial fermentation. Key technical barriers include strain selection, fermentation optimization, and process control. As domestic production technologies have matured, overall supply capacity has gradually increased, contributing to a shift from relatively tight supply toward a more balanced or even oversupplied market.

3. January–August 2026: Accelerated Decline and New Yearly Lows

Since the beginning of 2026, Neomycin Sulfate prices have continued their downward trend, with the decline becoming more pronounced.

Monthly price movements were approximately:

• January: 154
• February: 155
• March: 151
• April: 150
• August: approximately 135

The downward pressure became particularly evident during the second quarter.

In early May 2026, actual transaction prices were reported within a relatively broad range of 150–165, while the market price index remained weak. In June, although some manufacturers continued to support prices, downstream purchasing remained cautious and actual transactions weakened further, with prices generally ranging between 145 and 160.

By August, market conditions had deteriorated further. Although leading manufacturers temporarily maintained their ex-factory quotations, the center of market transactions continued to move downward, with actual transactions around 137–150, pushing prices to new lows for the year.

Compared with the 2024 peak of 167, current prices have fallen by more than 19%, indicating that the market has clearly entered a low-price adjustment phase.

4. H2 2026 Outlook: Low-Level Consolidation Likely to Continue

Looking ahead to the second half of 2026, Neomycin Sulfate prices are expected to remain in a low-level consolidation and weak trading range. A sustained recovery will likely require new market catalysts.

On the one hand, prices have already fallen significantly from the 2024 peak. Production companies are facing increasing pressure on costs and profit margins, reducing their willingness to make further aggressive price cuts. As profitability continues to narrow, some supply-side adjustments may emerge.

On the other hand, the relatively sufficient supply situation is unlikely to change fundamentally in the short term. Meanwhile, downstream demand remains constrained by the current profitability and operating conditions of the livestock industry. Purchases are therefore still largely driven by essential demand, leaving limited momentum for a sustained price rebound.

Several factors will be particularly important to monitor:

First, whether supply-side capacity begins to contract.
High summer temperatures, equipment maintenance, and temporary production adjustments could result in short-term supply reductions and provide some support for prices.

Second, whether export orders generate additional demand.
If Chinese manufacturers obtain additional international certifications—particularly relevant European market qualifications—and successfully increase export orders, domestic supply could be partially diverted overseas, helping improve the supply-demand balance.

Third, changes in downstream livestock market conditions.
Profitability and livestock inventories will directly affect veterinary pharmaceutical purchasing demand. If the livestock sector gradually recovers during the second half of the year, demand for Neomycin Sulfate could improve accordingly.

Fourth, changes in veterinary pharmaceutical regulations.
As regulatory oversight of veterinary pharmaceutical production, distribution, and use continues to strengthen, non-compliant products and informal channels may gradually exit the market. While this could temporarily suppress demand, it should contribute to a more standardized industry structure over the longer term.

5. Conclusion: The Market Has Entered a Bottom-Building Phase

Overall, Neomycin Sulfate has gone through a complete market cycle—from high-level growth in 2024, to a volatile decline in 2025, and finally to an accelerated downward movement in 2026.

The core market imbalance has gradually shifted from tight supply to relatively sufficient supply combined with weak demand. As a result, the fundamentals for a sharp short-term recovery remain limited. However, with prices continuing to decline and manufacturers facing increasing pressure on profitability, the room for further substantial decreases may also gradually narrow.

For H2 2026, the Neomycin Sulfate market is likely to remain in a phase of low-level consolidation and supply-demand competition. A sustained price reversal will require clearer signals, such as meaningful supply reductions, stronger export demand, or a recovery in downstream livestock markets.

For veterinary API manufacturers and buyers, the current market environment calls for more than simply monitoring price movements. Production costs, inventory levels, export orders, and the livestock cycle will be the key indicators determining the direction of the next Neomycin Sulfate price cycle.