China's Diphenhydramine Hydrochloride market faced a softer January, pressured by weaker overseas demand and seller concessions to clear inventories. Domestic producers kept full operating schedules, while inquiries from India and Southeast Asia softened as buyers worked through year-end stocks. By month-end, Chinese offers were trimmed, setting a bearish tone. Domestic OTC call-offs remained steady, while institutional tenders failed to add volumes, leaving producers with limited leverage and prompting price-reducing moves to stimulate shipments and protect baseline export volumes. Demand varied across end-markets; OTC formulators reported steady yet subdued call-offs for cough/cold and sleep aids, while hospitals and institutional procurement remained weak, with tender rounds yielding no incremental injections. Export-oriented buyers likewise reduced purchases as regional customers cleared inventories. Production ran near nameplate in Yangtze River Delta with feedstocks readily available and conversion costs stable; energy costs were broadly supportive. Forecasts point to modest near-term downside followed by a gradual recovery into coming year, dependent on order flow and destocking dynamics.
