Supply Constraints Inflate the Furosemide Prices in the European Market
- 22-Sep-2022 10:21 AM
- Journalist: Patrick Knight
Since the beginning of September, prices of Furosemide have continued to rise in the German markets, backed by a wrecked supply chain and other geographical and geopolitical contentions. According to the data, German Furosemide prices have increased by 12.08%, supported by the high production cost amid mounting energy prices, even though the demand from the downstream sectors has remained lackluster across the regional market. In contrast, speculation of inflation across Europe has dampened the inquiries from the downstream derivative, i.e., the pharmaceutical industry.
The Business Climate index fell to 88.5 points from 88.7 points. Further, Germany imports Furosemide partially from other European regions by road. The ongoing AdBlue shortage and road freight costs have been affecting its shipment across Europe concerning the Furosemide values. According to IFW calculations, about 2% of the world's containerized cargo is stuck in ports. Nonetheless, due to labor strikes and unrest, the persistent congestion at ports like Hamburg, Bremerhaven, etc., has hampered the Supply chain in the European market. Annual inflation in Germany increased from 8.2 percent to 8.5 percent.
Furthermore, energy prices in Europe are high as utilities reduce electricity output in western Europe because of the hot weather. Rising inflation affects the economy of European countries, passing the load on to the consumers. Moreover, Strict No-Covid guidelines and lockdown imposition in the Chinese provinces propelled halts on production units leading to insufficient supplies and disrupted trading activities. Also, container ships that import Furosemides from China are currently queuing in front of all North Sea ports, waiting to unload and clear customs.
According to ChemAnalyst, Furosemide prices in Germany will continue to surge in the upcoming months. The current situation in the European region is not likely to improve until supply, and logistical problems are resolved; hence, a boost in Furosemide's market value might be observed."