German Clindamycin Phosphate Values Decline Due to Crippling Downstream Demand
- 15-Sep-2022 6:53 PM
- Journalist: Nicholas Seifield
CFR Hamburg: Clindamycin Phosphate prices showcased a declining trend in the European countries, primarily in Germany, during the first half of Quarter 3. According to the data, Clindamycin Phosphate prices dropped due to lower downstream demand, which remained the primary factor.
In Germany, Clindamycin Phosphate prices have declined by -4.72% due to a sharp decrement in its downstream demand. Further, the disrupted importing activities from various European regions due to the low water level at the Rhine river positively supported the market sentiments towards Clindamycin Phosphate. Therefore, considering the higher inventories with the domestic merchants and reduced demand, the Clindamycin Phosphate market was mainly on the downside.
Additionally, China, one of the major exporters of Pharmaceutical APIs, disrupted trade activities and hampered supply chains, reduced the availability of downstream Clindamycin Phosphate in the German Market and supported its downward price trend. Further, multiple shocks hit the Chinese economy, including the drag on the consumption from the zero-covid policy, the COVID resurgence in China, followed by the heat waves and river drying up, hampered the supply of products from China to other regions, including Germany which significantly supports this market trend.
Moreover, in Germany, the market has been well-supplied with the stocks of API despite a lack of imports. Bearish customer expectations prompted the buyers to reduce their prices to destock their inventories and maintain their profit limits.
According to ChemAnalyst, "the prices of Clindamycin Phosphate is expected to reduce in forthcoming months as well. The prices will likely remain weak in the European region as the requirement might continue to weaken. Also, if the port activities resume, the supply side from the exporting countries might be slow due to clearing stockpiled inventories.