US Erythromycin API Prices are Under Pressure Due to Rising Inflation and Energy Costs
- 17-Nov-2022 2:51 PM
- Journalist: Peter Schmidt
Houston, USA: The price of Erythromycin API has been considerably soared in November 2022 due to several circumstances, including persistent local demand, backlogs at Houston's US ports, and a limited supply chain. Furthermore, rising crude oil prices and soaring inflation are also accelerating the market's direction putting APIs at record highs.
Freight prices have increased due to increased imports from exporting countries like China. Rising energy demand, limited supply, and geopolitical unrest have all contributed to higher fuel prices, impacting the production cost of Erythromycin API. The price increase of Erythromycin API is also attributed to low inventory levels and increasing consumer demand. Overall, the pharmaceutical business faces a short-term threat from these inflationary pressures. Suppliers and traders boosted their stock levels to maintain their profits in response to the escalating demand. The snowball effect has been observed along with other issues affecting the nation's economy. Rising input costs in the production of Erythromycin API have also impacted the market sentiments and persistent elements.
Additionally, the December holiday season in the North American region encouraged US retailers and suppliers to build up their inventories in preparation for ongoing demand from the end-user sector. The price of Erythromycin API went up overall by 1.7%. Erythromycin API price trends in the US market were further impacted by ships held up at the Houston terminal.
Despite being a significant exporter of Erythromycin API, the Chinese market and trading activities have witnessed positive sentiments on the back of strict COVID restrictions, which negatively impact supply chains, creating a supply-demand gap.
ChemAnalyst says, "The cost of Erythromycin API is expected to decrease in the upcoming month, which is December 2022, after continuing to increase month over month. This falling price trend is anticipated to be supported by a decline in downstream demand from end-user sectors."