Metformin Hydrochloride API Prices to Remain Stagnant in February
- 20-Feb-2023 6:53 PM
- Journalist: Emilia Jackson
The price of Metformin Hydrochloride API is persisting in a stable trend in February 2023 across the Asian and European markets due to consistency in demand and supply fundamentals. Nonetheless, the alleviation of inflationary pressures has slowly recovered consumer confidence. The regional players are able to maintain profitable arbitrage in their respective markets as the supply-demand picture is favorable.
Last month, when the Chinese government eased the Covid restriction, the price of Metformin Hydrochloride API increased about 1.5% in anticipation of a demand recovery from pharmaceutical producers once the Spring Festival holiday ends. However, it did not come out strong after the market reopened. Following the Lunar New Year's vacation, the market for Metformin Hydrochloride API is off to a stable start which means prices will remain almost the same by the end of February 2023 as in the previous month, with a slight increment depending on the market demand. The supply of Metformin Hydrochloride API is closely monitored with the increase in running rate. In contrast to demand, the manufacturers in China have adequate inventories to fulfill immediate orders. New orders for Metformin Hydrochloride API from overseas are gradually increasing because traders concentrated on replacing their existing stockpiles with new supplies.
In Germany, the price of Metformin Hydrochloride API is showcasing steady growth in February. High demand and low inventory caused prices to incline in January. While entering February, demand for Metformin Hydrochloride API in the German domestic market remains constant. Whereas in terms of supply, market participants concentrate on expanding stock by adding new inventory to the domestic market without thinking about the demand. In the meantime, purchasers haggle over pricing before finalizing their monthly purchases. As a result, several suppliers have implemented somewhat similar prices in February as that in January.
According to ChemAnalyst's team, the Metformin Hydrochloride API prices are likely to decrease in the coming months as the market participants foresee a decrease in demand from the end-user pharmaceutical sector. Also, a sufficient supply among the suppliers might lead to a price drop.