Rising Inquiries Across the Globe Lead to Price Enhancement of Sulfanilamide During January 2023

The market prices of Sulfanilamide have inclined across the globe primarily due to upsurged international quotations from traders, heightened fresh production, and a rise in input cost. Businesses are stocking up on inventory, sometimes more than they need, as market players suggest that demand from various end-user might follow a similar trend throughout the first quarter of 2023.

China is one of the major suppliers of Active Pharmaceutical Ingredients (APIs) to the globe. Increased sales for  Sulfanilamide in Germany and the United States have increased China's production capacity and raised operational charges within the domestic and overseas markets. As China has relaxed restrictions in its "Zero Covid" policy and reopened its economy, according to a report, major outbreaks at factories and ports and reduction in the workforce due to the Lunar New Year( LNY) holiday have further affected the overall market sentiments of all the end-user products including Sulfanilamide.

Europe and the North American region followed a similar trend for Sulfanilamide as that of China in January. Compared to the previous month, when the prices went down by 4.28 percent in the United States and around 3.11 percent in Germany, the cost of this API inclined at the same rate during the first half of Q1-2023. Raised inquiries from the domestic market of respective nations such as Germany and the USA, previous pent-up orders for Sulfanilamide were resumed by the traders in order to prevent the future shortage and meet the overall necessities, which further supported the positive trend of Sulfanilamide.

Besides that, the market shutdown in China due to the upcoming Lunar New Year Holiday also supports the positive price trend for Sulfanilamide. As strong inquiries from end-user Pharmaceutical, Healthcare sectors feared the traders of a surge in Covid-19 cases, which would affect production and trade activities across the region; because of this, they focused on procuring the inventories for the future and preventing their loss aversion.

As per ChemAnalyst's analysis, "The cost of Sulfanilamide is projected to mimic a similar trend during forthcoming months. End-user demand from the downstream sector is expected to increase consistently at a moderate rate, and quotations from the international market are likely to remain in the Northward direction.