US Azithromycin API Prices Edge Higher Amid an Improvement in Demand
- 18-Nov-2022 4:03 PM
- Journalist: Rene Swann
In the United States, Azithromycin API prices climbed significantly in mid-November 2022 due to increased demand from end-user producers. Several factors affected the US demand dynamics, including low inventories among domestic merchants amid supply chain disruptions. Furthermore, soaring inflation, backlogs at New York's US ports, and insufficient electricity supplies during peak winter accelerate the Azithromycin API market toward the higher end.
Limited supply coupled with rising pharmaceutical and healthcare orders from the start of November 2022 is certain aspects that have contributed to the price increase for Azithromycin API. In response to the rising demand, suppliers and merchants increased their stock levels in order to preserve their profits. Overall, these inflationary pressures cause a short-term threat to the pharmaceutical industry. Along with other difficulties, the snowball effect that is having an impact on the economy of the country has been seen. Rising input prices have also influenced the market sentiments and persistent aspects in manufacturing Azithromycin API.
Additionally, the North American region's December holiday season encouraged US suppliers and retailers to increase their inventories in anticipation of ongoing end-user demand. The Azithromycin API price went up overall by 1.2%. The price trend of Azithromycin API in the US market is further impacted by berth congestion which is due to increased import volume at the New York terminal. However, continuous chassis shortages have caused pick-up and delivery delays. The rising energy crisis and geopolitical unrest have contributed to higher fuel prices, resulting in high freight charges, which in turn impact the Azithromycin API prices.
ChemAnalyst says, "The price of Azithromycin API in the USA is expected to be stable in the upcoming month after continuing to grow month over month. This stagnant price trend is anticipated to be supported by a moderate to low downstream demand from end-user sectors ahead of the festive season. Domestic merchants will start destocking their shelves with Azithromycin API from the start of the month."