Sulfanilamide API Prices Remained on the North Side Globally

The prices of Sulfanilamide rose extensively in the global market during the month of November 2022, on the account of consistent incremented downstream demand, pretentious trading activities, and a shortage of inventories. In Germany, the bloc's largest economy, annual inflation slides to 11.3% from 11.6%. Still, commodities prices are scaling at an uncomfortably fast clip, driven up by the increasing cost of energy and food.

The fourth quarter of 2022 witnessed a steady fall in China's manufacturing activity, a primary source of Sulfanilamide in other countries, as an increase in COVID-19 cases brought further disruptions. Also, Stringent Covid controls have dragged down China's GDP to a 3% pace for the year as of the third quarter. Despite a fall in Chinese economic activity, the cost of Sulfanilamide showcased an inclined trend of 4.22 percent in November. Moreover, the domestic suppliers raised their prices in both the local and the international markets to maintain their profit limits and destock their limited inventories.

At the same time, the cost of Sulfanilamide demonstrated an upsurged price trajectory by 2.65 percent in Germany. Shortage of inventories and strong downstream demand propelled the market players to increase their quotations. Furthermore, market experts state that higher energy prices, the rising cost of living, increased interest rates, and overall uncertainty "are expected to tip Europe, the euro area, and most member conditions into recession during the last quarter of the year. "

The traders in the United States experienced similar market sentiments due to limited stock and strong end-user demand for the product from the pharmaceutical industries. However, the huge demand-supply gap faced by the suppliers in the regional market caused a rise in the prices of Sulfanilamide. Moreover, some traders benefited from inadequate inventories across the United States market and revised their offers.

According to the ChemAnalyst: 'Sulfanilamide prices may decline steadily in the forthcoming months. Market participants also expect a rise in their stock levels to meet the overall demand.