For the Quarter Ending June 2023
North America
Doxycycline hydrochloride price plunged 14.78% in June compared to April. Doxycycline hydrochloride prices fell in the US due to ample supply and low demand. Market momentum continued to decline due to the erratic relationship between supply and demand. Nevertheless, weak market activity and lower product bids led to price declines in the second quarter. China is the largest exporter of APIs to the United States. Due to the ease of trading activity, exports of doxycycline hydrochloride to the United States increased, resulting in increased supply in the US market that put downward pressure on prices. In addition, inflation slowed in the second quarter due to the Federal Reserve's rate hikes, which subsequently reduced demand for doxycycline hydrochloride in the US market, driving down prices. Additionally, the appreciation of the US dollar against the Chinese yuan in June made US imports cheaper and increased the availability of doxycycline hydrochloride, supporting the downtrend. Unfavorable market conditions persisted as weak end-user demand forced market traders and suppliers to cut prices to clear inventories.
Asia Pacific
Doxycycline hydrochloride prices fell 15.34 percent in June compared to April. Factors behind this downward trend include abundant supply and declining demand in domestic and overseas markets. The depreciation of the Chinese yuan against the US dollar suggested that the momentum of the Chinese economy remained weak, signaling a slowdown in the global economy and increasing pressure on external demand from consumer sectors. China's manufacturing PMI remained below 50 in the second quarter, with the National Bureau of Statistics (NBS) showing June's PMI of 49, compared with 48.8 in May and 49.2 in April, suggesting a contraction in the manufacturing sector. This slowed production due to weak consumer demand from the medical and pharmaceutical sectors, resulting in lower purchasing activity, fewer new orders, and decreased prices for doxycycline hydrochloride. Meanwhile, the Ukraine war continued to affect API supply chains, hampering export activity to other countries, such as the United States, leading to increased supplies in the Chinese market and lower prices for doxycycline hydrochloride.
Europe
Doxycycline hydrochloride prices fell 15.43 percent in June from the levels noticed in April. Factors such as low purchasing activity and ample inventories in the German market contributed to this decline. In Germany, the manufacturing PMI (Purchasing Managers Index) for June 2023 fell to 41 from 43.2 in May and 44.5 in April, indicating a slump in the manufacturing sector due to the impact of the COVID-19 pandemic. Follow-up queries for new orders had decreased at a faster pace due to weakened demand from end consumers. Germany's economy was hit by rising inflation and higher European Central Bank interest rates, leading to higher food and energy prices. This increased the cost of living, reduced consumer purchasing activity, and supported the downward trend in the price of doxycycline hydrochloride. The euro's appreciation against the US dollar has made imports cheaper and increased the supply of doxycycline hydrochloride in the German market. This put downward pressure on the price of doxycycline hydrochloride.
For the Quarter Ending March 2023
North America
In the first quarter, the prices of Doxycycline Hydrochloride witnessed a mixed market trend in the North American region. With the start of the first quarter, the prices inclined considerably due to an increase in orders from domestic buyers. Also, traders faced the situation of costliest import from China as the Chinese currency gained against the US dollar, appreciating nearly 3% in January alone. Moreover, as February reached, the prices went down even after reasonable imports quotation from China and were recorded at USD 67455/MT CFR Houston. Towards the termination of Q1, demand for Doxycycline Hydrochloride increased again, keeping the prices in the northward direction.
APAC
Throughout the APAC region, particularly in China, the prices of Doxycycline Hydrochloride demonstrate a mixed market trend during the first quarter of 2023. As in the month of January, Doxycycline Hydrochloride prices inclined in China because of a substantial surge in both domestic and international demands. Ease in logistic charges and a continuous surge in demand further supported the positive price trend of Doxycycline Hydrochloride until the end of January. Following February, the prices went down again, with the settlement at USD 65320 /MT FOB Shanghai in China. Towards the termination of Q1-2023, the demand surged at a moderate rate which was balanced by the overall supplies among the market participants.
Europe
Throughout the first quarter of 2023, the market for Doxycycline Hydrochloride in Europe demonstrates a decremented trend in the European region, primarily in Germany. The price trend began on a positive note at the start of Q1 but gradually started to decline as February approached and ended Q1 on a bearish note. With this, the prices recorded for Doxycycline Hydrochloride during the month of February were settled at USD 72530/MT CFR Hamburg. Also, Market players focused on destocking their stockpiles for Doxycycline Hydrochloride API in order to prevent loss aversion. Furthermore, at the termination of Q1, the freight and shipping costs depreciated, which kept the market situation feeble.
The Doxycycline Hydrochloride market showcased mixed sentiments during the fourth quarter of 2022 in the North American region. The Doxycycline Hydrochloride prices in the United States inclined till November and resumed their downward momentum in December. The reason behind an overall increase of 3.8% till November was surging demand from the downstream pharmaceutical and healthcare industries amidst high purchasing activities and limited inventories. By the termination of the fourth quarter, Doxycycline Hydrochloride prices declined by 4.1% owing to low offtakes for the product from regional buyers considering the weak demand. The CFR prices for Doxycycline Hydrochloride were assessed at USD 83550/MT in the United States at the end of the quarter.
During the final quarter of 2022, the Doxycycline Hydrochloride market showcased an overall fluctuating pricing trend in the Asia-Pacific region. In the Chinese market, the prices dropped considerably with the onset of Q4 due to enough inventories with the local vendor amidst slow offtakes from downstream producers. However, the demand in mid-Q4 went on the higher side with lower stocks. Some production activities decreased owing to the lockdown in Shanghai with rising COVID cases, propelling the manufacturers to increase their rates to gain profits considering low inventories. Therefore, the Lopinavir API market dynamics got stable on the lower side over the end of Q4 in China, with FOB Shanghai prices settling at USD 66255/MT.
In Europe, the prices of Doxycycline Hydrochloride fluctuated during the Q4 of FY2022, resembling the North American market price trend. The primary reason for these fluctuations was the constant alteration of supply and demand dynamics. Additionally, fluctuations in trade frequency from China during the whole quarter also affected the market value of Doxycycline Hydrochloride. The slow offtake from downstream pharmaceuticals and healthcare industries was one of the factors behind this flutter price trend of Doxycycline Hydrochloride. Also, the inventories among domestic merchants hovered, which also influenced the mixed market sentiments of Doxycycline Hydrochloride in Europe. Thus, the CFR prices of Doxycycline Hydrochloride in Germany settled at USD 88860/MT in December.
