Penicillin G sodium Values Escalate in Europe. Is it Due to Trade Disruption or other Factors?
- 12-Sep-2022 3:39 PM
- Journalist: Rene Swann
CFR Hamburg: The European countries have witnessed an increment in the prices of Penicillin G Sodium in the second half of Quarter 3, 2022. Various factors contributed to Penicillin G Sodium prices enhancement, including disrupted market supply, affected trades, and adverse impact of COVID-19 on manufacturing logistics and output in China, a major supplier.
The prices of Penicillin G Sodium showcased an upsurged trend owing to the imbalance between the supply-demand dynamics. In August, the downstream demand from the importing countries rose, but the supply from the Chinese Market was insufficient to cater to the demand side as the manufacturing capacity utilization rate turned downward. It was observed that China's export growth weakened in August due to high energy prices, inflation, zero-covid policy, and anti-virus restrictions which weighed on international demand. Last month, as the Chinese yuan slumped to its weakest against the dollar in almost two years, authorities sought ways to prop up its struggling economy without stoking financial instability. They also tried to put a floor under a slowdown spurred by China's hit on consumer sentiments fueled by stop-start Covid containment strategies that significantly impacted Germany's end-users demand.
Additionally, Europe's energy problems have also been dashed to a lack of rainfall due to declined water levels in rivers and reservoirs hitting hydropower plants supplying electricity. Because of this, trade activity was significantly affected.
Also, the heightened requirements, Russia's onslaught on Ukraine, and several rerouting activities led to the delayed overall available consignments from several other countries, which helped the local merchants to increase the prices of their products in the domestic market to gain profit margins. With this, the prices of Penicillin G Sodium demonstrated a monthly inclination of 3.52 percent.
According to ChemAnalyst, "Penicillin G Sodium prices are likely to witness an incremented state in the upcoming months. Besides that, the port congestions and shipment delays will continue disrupting the supply chain".