Sulfamethoxazole Prices Continue to Rise in Both Asian and European Markets
- 09-Mar-2023 5:59 PM
- Journalist: Francis Stokes
In response to increasing demand from the end-user pharmaceutical and healthcare industries, the price of Sulfamethoxazole is on the rise in both the Asian and European markets. The API market is extremely competitive as a result of rising raw material costs for most of the Active Pharmaceutical Ingredients, including Sulfamethoxazole. After the improvement in inflationary pressure, consumer confidence is returning in the worldwide market, which is indirectly encouraging purchasing sentiments in the corresponding regions.
In February 2023, the Sulfamethoxazole market in the Asian region was booming, and prices were on the rise. While there has been an increase in buyer activity and higher-quality arrivals over the past two months, market participants have seen a growing price trend. The increased demand from downstream industries has caused operating rates at domestic production facilities to increase. China's Purchasing Managers' Index (PMI), according to the National Bureau of Statistics, increased from 50.1 in January to 52.6 in February, indicating that manufacturing activity have improved. Moreover, Sulfamethoxazole trading operations on both domestic and foreign markets have greatly increased, along with a major increase in downstream inquiries, which has led to a price increase. As more international market participants opt to place large orders, the additional production is anticipated to have a favourable impact on the market environment. This upward trend is therefore likely to continue as Chinese traders anticipate increased customer engagement, particularly from the pharmaceutical industry.
Due to a limited supply and improvements in downstream industry procurement, the market sentiments for Sulfamethoxazole in Europe continue to be optimistic. Due to the high import rates that German customers are paying for Sulfamethoxazole from China, local retailers have also increased their prices to reflect their profit margin.
According to ChemAnalyst, the Sulfamethoxazole costs will rise over the coming months as a result of consistent demand from end-user producers and a constrained supply among local retailers.