Metformin HCL in China rose sharply in March as export activity and tighter prompt availability supported demand. Early momentum reflected high throughput from API producers, while mid-month inspections prompted output curtailments at smaller facilities. Overseas formulators accelerated purchases ahead of anticipated second-quarter tender resets, compressing immediate availability and drawing down Shanghai prompt stocks. Tighter Customs checks extended clearance windows, narrowing free-on-board availability and reinforcing upward momentum across Shanghai listings. Demand flows favored finished-dose manufacturers and formulators, with Indian and Brazilian buyers front-loading to secure raw material ahead of tenders. Export activity and steady domestic hospital procurement underpinned the market. Indian finished-dose manufacturers lifted API intake by about nine percent month on month, while hospital dispensing in China rose around four percent. Market response included firm demand from diabetes medicine channels despite higher feedstock costs. Integrated producers maintained above-baseline operating rates and leveraged captive dimethylamine lines, but methanol-related feedstock risk remained. Near-term outlook suggests continued upside into April and May.
