Global Ofloxacin Prices Rise Amidst Surging Downstream Demand
- 31-Jan-2023 4:32 PM
- Journalist: Shiba Teramoto
The prices of Ofloxacin began the first month of Q1-2023 on a sturdier side in the global market, majorly in Germany, the United States, and China. Inquiries from the international market surge and various experts suggest that the current breakdown of China's zero-Covid policy and the looming mild recession are the main causes of this price surge.
During the last week of December, the Covid surge in China, a major raw-material procurement center for Indian drug-makers, has impelled the prices of basic drug ingredients by around 25%, raising its cost of manufacturing by domestic market players sharply and tripping fear of likely shortage in supplies for Ofloxacin. Additionally, labor shortage and a significant surge in end-user quotations from the international market further kept the prices of Ofloxacin in the northward direction. Overall, the prices downstream of Ofloxacin in the Chinese market witnessed an inclination of around 3.75 percent.
Similarly, in Europe and the United States, the prices of Ofloxacin demonstrate a healthy market sentiment as the prices inclined by around 4.32 percent in Germany and 3.48 percent in the United States. Rising output and stock levels among market players may be encouraged by increased inquiries from the downstream sector in the domestic market. The arrival of the Lunar New Year (LNY) Holidays feared traders to raise their quotations and restock their shelves to prevent a further shortage of Ofloxacin within the region.
Europe, the cost of Ofloxacin showcases an increment after witnessing a continuous decline since the last month of the first quarter of 2022. This upsurge in the prices is attributed to higher production costs and input charges from upstream factories. The European market, which has long struggled with low demand for Ofloxacin pressure brought on by supply uncertainty that affected the global pharmaceutical sectors, has begun to pull key economies into recession. Earlier because of a greater rate of coronavirus cases witnessed in China, which resulted in a halt in manufacturing and a significant dip in inquiries, now focused on increasing its production capacity as with the beginning in January 2023, the customer's requests grow, prompting the trader to raise their stock of Ofloxacin.
According to ChemAnalyst, "Ofloxacin demand is anticipated to surge in German and the Chinese market and will decrease at a moderate rate in the United States. Market participants might have sufficient stock to cater to overall requirements in the approaching months."