Erythromycin Prices Likely to Show an Upward Trend During March 2023
- 06-Mar-2023 5:25 PM
- Journalist: Rene Swann
The price of Erythromycin has been rising in the US and German markets since the beginning of January 2023 and is anticipated to keep rising throughout the first quarter of 2023 due to the growth in demand from the pharmaceutical end-user industries. The reduction of inflationary pressure has led to a gradual rise in consumer confidence across the globe. Rising raw material costs for all APIs, including Erythromycin, have further worsened the competitive market for APIs.
End-user consumer demand is rising in the Chinese market. The end of December 2022 saw an unexpected pandemic return, posing a threat to China, which exports the majority of API, including Erythromycin. This pandemic crisis in the Chinese provinces considerably impacted the domestic and international market situation. Additionally, because of increased demand and decreasing production, stockpiles depleted more quickly, leaving the market participants with little to no inventory between them, which caused Erythromycin prices to rise. The increased production is likely to have a favorable impact on the market position as more foreign market players choose to place large orders.
Demand from domestic and international markets increased as the first quarter of 2023 got underway, forcing the market players to raise their prices because there was insufficient supply among them. After the Christmas break, further batches of Erythromycin API were produced, and some companies mostly filled early export orders, which resulted in somewhat high pricing. Energy prices have grown because of the Russia-Ukraine invasion, which eventually had an impact on Erythromycin pricing. In the first quarter of 2023, new inventories entered the market, and increased production further supported the positive trajectory in the US and German markets in response to intensifying market demand conditions.
According to ChemAnalyst, due to new manufacturing initiatives and fresh supplies to meet the end-user sector's demand, Erythromycin prices are anticipated to continue rising in the approaching month.