Stable Demand and Lower Inventory Expected to Lift Metformin HCL Prices in Late May in South Korea

ChemAnalyst’s recent analysis for South Korean market for Metformin HCL shows that prices of the product dropped further in the first half of May 2025, following a decrease in pricing for April. The market continued to be under pressure from persistent global oversupply, sluggish manufacturing activity, and weakened import prices. The combination of bearish fundamentals and careful buying sentiment kept the pricing environment weak at the beginning of May.

• Prices for Metformin HCL in South Korea fell further in early May 2025, after experiencing an unprecedented decline in April due to significant global oversupply and a drop in import costs.
• Competitive export offers from China, alongside a stronger won, led to lower effective import prices for South Korean consumers of Metformin HCL.
• Weak manufacturing activity and elevated inventories kept demand for Metformin HCL subdued across some key downstream sectors.
• Inflationary pressures and cautious purchasing behavior continued to carry a bearish outlook for the Metformin HCL market.
• Prices for Metformin HCL are anticipated to resume some gradual price increases in late May 2025, as inventories stabilize amidst steady demand.

The price of Metformin HCL in South Korea dropped significantly in April, due to large supply in the international marketplace and lower costs of international imports. Chinese suppliers were still decreasing export prices due to excessive over supply of the product and industrial deflation so South Korean importers were able to purchase the material for little cost. Additionally, since the US dollar depreciated against the South Korean won, domestic purchasers had additional purchasing power that made imports even cheaper.

Also, Metformin HCL inventory was high both in domestic and global supply chain, so there was no urgency to restock. Falling freight and energy costs also reduced logistics expenses, overall price decline. South Korean Manufacturing PMI reported its 3rd consecutive month of contraction in April, indicating weaker industrial output and slow new orders. These indicators showed limited demand of Metformin HCL from downstream sectors, particularly pharmaceuticals and healthcare, which reduced transaction in the market.

In early May, procurement proceeded with caution while end users monitored economic indicators. The inflation threat also remained. Consumer prices increased 2.1% year on year in April, slightly above market expectations. This put additional pressure on consumer sentiment and spending and dampened expectations of demand for industrial and pharmaceutical applications.

However, the Metformin HCL pricing outlook is beginning to shift. According to market experts, Metformin HCL prices in South Korea are expected to take an upward direction in the second half of May. Prices are anticipated to increase at a gradual pace, driven by stable demand across key sectors such as healthcare and pharmaceuticals. Increased market stability is anticipated as a result of stable inventory levels supporting better supply-demand alignment. It is anticipated that these changes would result in increased price revisions as suppliers react to tightening fundamentals and shifting market dynamics.