For the Quarter Ending June 2023
North America
In the United States, the price of Amoxicillin Trihydrate was down 7.04 percent in June from levels seen in April. Prices have declined due to increased supply, lower domestic and overseas market demand, and higher API (Active Pharmaceutical Ingredients) prices. China is the main API exporter to the US. As COVID regulations were eased, exports of amoxicillin trihydrate to the US increased, which increased supply in the US market, putting downward pressure on prices. Additionally, inflation slowed down in the second quarter as a result of the Federal Reserve's rate hike, which subsequently led to lower demand for amoxicillin hydrate in the US market, driving prices down. In addition, the US dollar strengthened against the Chinese yuan in June 2023, making imports in the US cheaper, resulting in increased amoxicillin trihydrate availability, supporting the downtrend. Market traders and suppliers were forced to lower prices in order to clear their stockpiles amid weaker demand from end-consumers, which has maintained the adverse market situation.
Asia Pacific
In China, Amoxicillin trihydrate prices dropped 4.36% in June in comparison to the levels seen in April. Factors responsible for this downtrend include increased supply, decreased demand, and currency fluctuation. Economic momentum in China remained on the weaker side, indicating a slowing down of the global economy, which added pressure on external demand from end-user industries. According to the National Bureau of Statistics (NBS), China's manufacturing PMI (Purchasing Managers' Index) remained below 50 throughout the second quarter, indicating a contraction in the manufacturing sector. This slows down production due to weak demand from end-user healthcare and pharmaceutical sectors, with reduced purchasing activity and new orders, driving down the price of amoxicillin trihydrate. Additionally, the Chinese Yuan fell against the US Dollar in June, indicating a slowdown in China's post-pandemic recovery due to weaker consumer confidence. Meanwhile, Russia's invasion of Ukraine continued to create obstacles for exporters, affecting API supply chains, and leading to an increased supply of amoxicillin hydrate in the China market, causing prices to fall.
Europe
In Germany, a downward trend of 5.64% for Amoxicillin Trihydrate prices has been recorded in June since the beginning of the second quarter. Supporting factors for this downtrend include weak purchasing power and overflowing inventory in the market. Amoxicillin Trihydrate supply has increased due to lower APIs prices and increased exports of Amoxicillin Trihydrate from overseas countries such as China. In addition, the German government relaxed some generic drug import protocols that increased the availability of the generic version of amoxicillin trihydrate, causing the price of amoxicillin trihydrate to fall further. In addition, the Manufacturing PMI (Purchasing Managers Index) fell to 41 in June, from 43.2 in May and 44.5 in April, indicating a slowing down of the German economy. The German economy is impacted by increased inflation and higher interest rate imposed by the European Central Bank, resulting in higher food and energy prices. This has increased the cost of living, reducing the purchasing activity by consumers, further supporting the downward trend of Amoxicillin Trihydrate prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Amoxicillin Trihydrate showed depreciated market dynamics with minimal variation. Prices rose at the start of Q1 2023 and stayed up through the end of February thanks to merchant supplies to satisfy demand and ongoing purchases from the pharmaceutical end-user business. The settlement price of Amoxicillin Trihydrate API was reported at USD 38850/MT CFR Houston, with an average quarterly declination of 0.81%. Additionally, the market position was favorably impacted by improved trade flow and simpler logistic charges than the previous quarter. On the other hand, prices decreased in March due to sufficient stocks, low-end-user sector offtakes, and a decrease in freight costs.
Asia
Amoxicillin Trihydrate prices witnessed a positive trajectory in the APAC region in the first quarter of 2023. The prices decreased at the start of Q1 2023, with enough inventories and a low demand outlook. Also, feeble production activities kept the market situation weak. With the commencement of February, After the Lunar New Year break, the Chinese pharmaceutical markets technically returned on a positive note with an increase in orders and shipments from both the domestic and the international market. As the market was reopened, factory and port operations resumed. At the termination of Q1 2023, the settlement price of Amoxicillin Trihydrate API accessed at USD 37550/MT FOB Shanghai with an average quarterly inclination of 0.96%.
Europe
Amoxicillin Trihydrate displayed weak market dynamics with little volatility in the first quarter of 2023. Due to merchant supply to meet demand and continued purchases from the pharmaceutical end-user sector, prices increased at the beginning of Q1 2023 and remained up until the end of February. The ease with which trade might be suspended contributed to the market trend for Amoxicillin Trihydrate. Amoxicillin Trihydrate API's settlement price was reported to be USD 140650/MT CFR Hamburg, with a quarterly average declination of 1.84%. The market position also benefited from an increase in trade flow and simpler logistic costs compared to the prior quarter. On the other hand, prices dropped in March because of ample supplies, offtakes from the low-end user sector, and lower freight costs.
For the Quarter Ending December 2022
North America
In the North American region, the Amoxicillin Trihydrate price trend observed an escalating trajectory in the H2 of Q4 2022 owing to limited inventories among regional retailers. The Golden week vacation interrupting imports from China during the first week of October propelled a few domestic retailers to raise their price quotations in response to the enduring demand from the downstream sector. Moreover, the buying activities were elevated due to rising offtakes from end-user pharmaceutical and healthcare sectors. The tiebreakers, which included China’s Covid lockdowns, Russia conflicts in Ukraine, rising inflation in the US, and harsh weather conditions, continued to put fragile supply chains in danger throughout most of the quarter. By the termination of the quarter, a decrement was seen in the market dynamics of Amoxicillin Trihydrate due to weak demand and a dull purchasing mood ahead of the Christmas Holiday. Therefore, the CFR Houston prices for Amoxicillin Trihydrate in the United States shifted from USD 47270 /MT in October to USD 39855/MT in December.
Asia- Pacific
In the Asia Pacific, Amoxicillin Trihydrate witnessed mixed market sentiments during the last quarter of 2022. However, FOB Shanghai values changed from USD 41220/MT to USD 36505/MT from October to December. In the first half of Q4, the robust demand from several end-user pharmaceutical and healthcare industries has impacted the Amoxicillin Trihydrate prices in the Chinese market. The halt in production activities during the Golden week vacations in the first week of October resulted in low inventories among domestic retailers, which in turn supported the pricing tendency in the market. However, the prices started to decline from the H2 of Q4 as industries resumed production, and the domestic manufacturers and suppliers met the total demand during the quarter with an acceptable supply of inventories on hand.
Europe
In Europe, the Amoxicillin Trihydrate resembled the similar market dynamics of North America and the Asia Pacific region. However, the price of Amoxicillin Trihydrate saw an increase till November 2022, with CFR Hamburg values settled at USD 49950/MT in October and then rising even further to USD 50580/MT in November. Supply constraints and persistent demand from end-user sectors were the driving forces behind the price increase. Additionally, when import costs increased, domestic industries were obliged to change their product line-ups to increase profit margins. Later, in December, feeble purchasing activities were observed due to lowering demand from the regional market, resulting in a price decline. Local traders reduced prices in the German domestic market to attract orders because they were pessimistic about the stock on hand. As a ripple effect in Germany, the CFR Hamburg prices of Amoxicillin Trihydrate settled at USD 40555/MT in December 2022.
For the Quarter Ending September 2022
North America
With prices assembled at USD 44410/MT in July, the North American market for Amoxicillin Trihydrate started the Q3 of 2022 on a downward note. Entering July, buyers only made purchases for instant use caused by both the subpar offtakes and the weak end-user demand. However, the prices of Amoxicillin Trihydrate increased until September and were settled at USD 46450/MT. The US mainly imports Amoxicillin Trihydrate API from China, whereas most factories in China were under maintenance in the final week of July, resulting in lower imports into the US. As August approached, the demand for Amoxicillin Trihydrate in the United States increased and remained persistent by the end of the third quarter due to low inventories among domestic merchants.
Asia- Pacific
In the third quarter of 2022, the price trend for Amoxicillin Trihydrate in the Asia Pacific market exhibited a fluctuating trajectory. The market opened in July with adverse sentiments but enhanced in August, with prices settling at USD 41150/MT in China. The market supply side faced great uncertainty in the first half of the quarter, mainly due to the manufacturing unit's high-temperature maintenance, resulting in supply reduction. These factors caused an escalation in the prices of Amoxicillin Trihydrate in August. However, later the upward trend declined in September, with prices assembling at USD 40225/MT. As the temperature dropped in September, the plants resumed their production, with the market supply returning to normal, and demand became regular from the downstream pharmaceutical sector.
Europe
During Q3 of 2022, the prices of Amoxicillin Trihydrate resembled the trend of the Asia-Pacific region. The price of Amoxicillin Trihydrate first decreased by 2.9 % in July but later increased drastically by 7.5% in August, with values settling at USD 50140/MT. The price rose for Amoxicillin Trihydrate was supported by a combination of factors, including a high demand from end users pharmaceutical, strong purchasing activity, and insufficient supply of the product in the German domestic market. Also, the situation in Europe worsened with ongoing lockdowns in Chinese ports and unrest in Russia and Ukraine. Therefore, by the termination of Q3, the dynamics of the Amoxicillin Trihydrate market were suppressed across the European region, with prices evaluated at USD 48770/MT.
North America
The market sentiments of Amoxicillin Trihydrate showcased fluctuating pricing trends in North America during the quarter second of 2022. The prices of Amoxicillin Trihydrate consistently soared till May and then dropped slightly in June, backed by inconsistent downstream demand. The downstream inquiry for Amoxicillin Trihydrate from pharmaceutical industries to treat several bacterial infections such as pneumonia, tonsilitis, sinuses, etc., was strong till May, which later started depleting. Furthermore, the value for upstream was escalating till May, raising the manufacturing cost of Amoxicillin Trihydrate, causing the price hike for Amoxicillin Trihydrate. Later, as the upstream cost reduced along with the deduction in downstream demand, the market value of Amoxicillin Trihydrate dropped considerably. Towards the end of Q2 of 2022, Amoxicillin Trihydrate was assessed at USD 45890/MT for CFR Houston.
Asia- Pacific
Mimicking the north American pricing trend, the price value of Amoxicillin Trihydrate fluctuated in the Asia-Pacific region during the second quarter of 2022, according to market perceptions. The market value of Amoxicillin Trihydrate significantly decreased in April before abruptly rising as the upstream cost decreased and the downstream demand decreased. Later, Amoxicillin Trihydrate prices rose until June, supported by erratic downstream demand. Pharmaceutical firms had a significant need for Amoxicillin Trihydrate to treat various bacterial diseases, including tonsillitis, pneumonia, sinus infections, etc. Additionally, the upstream price was rising, which increased the cost of producing Amoxicillin Trihydrate and thus led to an increase in the API's price. Therefore, Amoxicillin Trihydrate was assessed at INR 2142860/MT for Ex-Vapi towards the end of Q2 of 2022.
Europe
Unlike North America and Asia-pacific, the market value of Amoxicillin Trihydrate soared consistently till June in the European countries during the second quarter of 2022. However, the Amoxicillin Trihydrate price hike in April was much larger than in May and June. Upsurged downstream demand from pharma industries to cure diseases like pneumonia and tonsilitis readily contributed to the price rise of Amoxicillin Trihydrate in the domestic market. Furthermore, the escalated upstream cost on account of augmented raw material prices exacerbated the Amoxicillin Trihydrate's price value even more. Altogether, the downstream offtake and manufacturing costs increased continuously in Europe during the quarter, eventually increasing Amoxicillin Trihydrate prices. Towards the end of Q2 of 2022, Amoxicillin Trihydrate was assessed at USD 48040/MT for CFR Hamburg during June 2022.
