European Erythromycin API Prices Follow an Upward Trend in October 2022. Why?
- 17-Oct-2022 6:50 PM
- Journalist: Rene Swann
Hamburg: In Europe, Erythromycin API prices have been consistently increasing since the beginning of October 2022, supported by several factors, such as rising Natural gas costs, growing demand from the pharmaceutical industry, and rising crude oil prices. Also, the lack of sufficient inventories and fewer stockpiles propelled the price chart of Erythromycin API. According to data presented by ChemAnalyst, Erythromycin prices have settled at 2.63% in the European region.
Large-scale operational activities have been impacted by the power constraint and rising energy prices, which resulted in low production levels and negative inventories among European stockholders. Because of the European pharmaceutical industry's dependence on the APAC region, the market followed the same trend as APAC. The demand from the downstream sectors has decreased due to the impending recession in the European economy. The results show that the European inflation rate rose from 9.1% to 10% in September 2022. Additionally, a seven-day labor strike has begun in the UK's Liverpool port owing to Steaming price inflation ended on October 17, further affecting the Erythromycin API market sentiments. Also, Russia Ukraine invasion has been wreaking havoc across the continent, worsening the downstream market of Erythromycin API.
About 80% of Europe's API needs are imported from China, contributing to the region's inflated market trend. Due to golden week, the continued production stoppage impacted the market in both APAC and Europe region. Rising energy and operations costs gave the Chinese regions even more momentum. Erythromycin API prices have been increased due to a depressed stockpile and a lack of supplies to meet downstream demand. Additionally, Germany has been struck hard by roadblocks and the severity of sea freight.
The sustained demand for Erythromycin API in the downstream market "regardless of the downstream market is likely to settle down in the approaching months following constant downstream consumption and demand from pharmaceutical sectors," claims ChemAnalyst.