Paracetamol API off to a Gloomy Start in North America
- 31-Oct-2022 6:48 PM
- Journalist: Bob Duffler
Since October, the downstream demand for Paracetamol in the North American region has appeared to be dropping due to stable supply. Since customers were hesitant to make big purchases due to the rising inflation in the US market, a bearish trend has been in place since the second part of August. Additionally, providers of paracetamol API have been decreasing their offers to sell out the available inventories.
Due to challenges in international trade and excessive inventories in the local market, imports and exports decreased globally slightly despite growing inflation. The crises have hampered the supply chain in Russia-Ukraine and China-Taiwan, and declining purchasing power has also impacted off-take. As a result, the demand shows indications of slowing. According to IMF projections, global growth will sharply decelerate, falling from 6.1% to 3.2% in 2022 and 2.9% in 2023. A slower growth rate has the effect of lowering commodity demand and prices. They added that the price of paracetamol API would drop more in the future, particularly in the import industry, due to declining freight costs from the Asia-Pacific region. Poor purchasing behaviour caused paracetamol API to stockpile, forcing manufacturers to lower production and manufacturing costs. Additionally, the government's export restrictions on paracetamol led to a robust supply side in domestic and international markets.
For the time being, the paracetamol API market in China likewise experienced dwindling sentiments as prices dropped 3.6% in September. Due to lockdowns enforced by the zero covid policy in Shanghai and other major producing centres, the growth there began to decline in the second quarter of August. The core production units stopped impacting trading activities as a result.
ChemAnalyst Database states, "The Paracetamol API market may remain constrained at its current levels or experience a minor improvement in the coming months, notably due to the increases in natural gas and electricity prices, which may have an impact on the production units. The cost of production must therefore be given more consideration.