Ofloxacin Prices Show Bullish Trend in the USA at the Termination of Q2 2023
- 14-Jul-2023 2:57 PM
- Journalist: Rene Swann
After a significant drop in the prices of Ofloxacin in the United States, the prices went on the upper side in recent months and demonstrated an overall positive trend until the end of the second quarter. This steady price rise was attributed to a rise in domestic inquiries, a surge in upstream costs, and operational charges during June. Besides this, due to the expansion of manufacturing activity across the exporting nations, the supply of Ofloxacin has been surging this month.
Moreover, another factor that supported the upsurged price trend for Ofloxacin in the United States was that the war in Ukraine has also affected the supply of some of the raw materials used to make Ofloxacin. This has led to higher prices for Ofloxacin in the current month and is expected to continue to surge in the approaching months. However, since the improvement in the COVID-19 situation in recent months, ports have reopened, and factories have resumed production for Ofloxacin. This has led to an increase in the availability of goods, which puts downward pressure on freight rates, further supporting the positive market outlook for June. Also, the crude oil prices lowered in the market, further supporting the lower freight charges.
Demand for Ofloxacin in the United States has improved steadily in recent months. Ofloxacin is mainly used in the pharmaceutical and healthcare sectors. The traders are destocking their previous stockpiles for Ofloxacin at lower prices than anticipated. Moreover, The Consumer Price Index in the United States for the month of June showcased an increment of 0.1% from 0.4% in May. This increase was driven by a 0.3% rise in the food index and a 0.2% surge in the energy index.
On top of that, the production costs of various pharmaceutical raw materials have increased in the Chinese market owing to heat waves, resulting in higher energy consumption. This further supported the upward price momentum for Ofloxacin in domestic and overseas markets.
As per the ChemAnalyst anticipation: “Overall, the demand and supply of Ofloxacin in the United States are expected to remain strong in the approaching months as well. This might result in a stable price trend for Ofloxacin, although there is some risk of price increases if supply disruptions continue. Moreover, change in climatic conditions are expected further hinder the supply-demand activity for almost all the commodities owing to which merchants and traders are likely to focus on selling their products per the requirements.”