For the Quarter Ending June 2023
North America
In the second quarter of 2023, the U.S. market for Dolutegravir witnessed oscillation. In the first two months of Q2, the prices were recorded to be increasing stably in the wake of enhanced dynamics of supply and demand. Asia-US trade has grown since the zero-covid tolerance policy was abolished. Given the rising demand from end-user suppliers, there was a moderate lack of Dolutegravir on the shelves of domestic warehouses, which led to price inflation in the market. Eventually, at the commencement of June, prices started to fall, and the market witnessed a considerable plunge in the trajectory of Dolutegravir in the US. Due to unusually low purchases by the end-user industry, domestic suppliers have large inventories of Dolutegravir, leading to continued cost reductions in the domestic market. U.S. imports fall as companies struggle to sell excess inventories. Import cargo volumes at major US container ports also fell.
Asia
The Dolutegravir market in the second quarter of 2023 in the Asia Pacific region showcased a mixed trajectory. From the commencement of Q2 till the middle of Q2, the Dolutegravir market showed stable price inflation due to static domestic and international orders. India exports saw a better-than-expected market situation in April as consistent inquiries from the domestic and international markets remained above average. Also, the increased production rates to refill the inventories with fresh stock and cater to the upcoming demand market situation remained strong. Later, with the termination of mid-Q2, the prices fluctuated, and the prices witnessed to deflate significantly. The price was valued and accessed at USD 287325.16/MT Ex-Hyderabad as of the end of Q2 2023, representing an average quarterly decline of 1.08%. Due to the large inventory of Dolutegravir in warehouses, suppliers had to lower their prices to clear existing stocks. In addition, this price trend was essentially supported by the decline in sales in the end-user sectors, and there were no new inquiries from domestic and international suppliers.
Europe
In the second quarter of 2023, the Dolutegravir in the European market saw fluctuations. With the inception of the second quarter, prices inflated stably, backed by supply-demand equilibrium. According to the data, Europe's inflation rate decreased to 7.4%. The unexpected oil output cut decision by the OPEC+ members also had a favorable impact on the market environment. Increased energy costs, increased production expenses, and skyrocketing shipping costs all contributed to the market's continued strength. The decline in end-user sector consumer demand and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Dolutegravir import prices. However, the slowdown in the global economy has reduced demand for Dolutegravir. Speculators are also selling Dolutegravir futures in anticipation of future price declines, which is also putting downward pressure on prices.
