For the Quarter Ending December 2022
Furazolidone API prices in North America fell a little in the fourth quarter of 2022, with CFR New York values down by 2.29% between October to December from $16750/mt to $16366/mt. Furazolidone imports were delayed in the first week of October as a result of a Golden week holiday in the world's largest exporter, China, but robust local demand kept the market optimistic throughout the first half of the quarter. Nevertheless, prices in the US declined in the latter weeks of the quarter due to large stock inventories by domestic retailers and poor demand for Furazolidone. However, as the economy grew and the port backlog sharply shrank in November, the lengthy supply chain did begin to improve.
Furazolidone prices in the Asia Pacific region showed a negative market pattern in the fourth quarter of 2022. Prices for FOB Shanghai in China dropped from $15950/mt to $15220/mt between October and December. Orders for Furazolidone for the Chinese API market marginally reduced during the first week of October as a result of the production facilities being shut down for the one-week holiday. Following the holidays and the market's reopening, domestic traders met several contradictory signals, making it challenging for the players to keep up with the slow progress seen in the downstream industries. End-user demand remained strong throughout the quarter. Due to criticism and widespread displeasure in the country regarding zero-covid policies, government authorities revived a few regulations, making the country vulnerable once more.
Furazolidone's European market in Germany exhibited similar trends as those in North America and Asia. Prices for CFR Hamburg initially rose during the first half of Q4 and peaked at $17580/mt in October before falling to $17220/mt later in December, exhibiting a declining trend. Due to the unanticipated increase in coronavirus infections, which led to a decline in international demand during the last weeks of December, offtakes were greater in the earlier half of Q4 than they were in December. However, causes like COVID accidents and the conflict between Russia and Ukraine continued to harm the economy as a whole. Concerns about the supply chain were lessened, and at the conclusion of the year, the CPI in Germany decreased.
For the Quarter Ending September 2022
The price trend for Furazolidone API in the North American region followed an increasing path in the third quarter of 2022. Consistent demand from the downstream pharmaceutical sector with lessened stocks with the domestic merchants affected the cost of Furazolidone API further. During the third quarter, the market was also volatile because of the disrupted supply chain from China on the back of covid restrictions. Also, some industrial facilities in China were shut down for maintenance, resulting in reduced imports to the US. Towards the end of the quarter, Furazolidone API prices were assessed at USD 16600/MT for CFR New York in September 2022 with a quarterly inclination of 3.9%. Overall factors significantly impacted the surging pricing trend along with the inclining demand throughout the third quarter.
During Q3 2022, the prices of Furazolidone API faced an upward price trajectory around the Asia Pacific region. This incline in China results from strong market sentiments, increased demand from downstream pharmaceutical industries, and consistent offtakes from the domestic market. The supply chain for Furazolidone API was suspended after Chinese authorities imposed a lockdown, further reinforcing the price trend. However, after the markets reopened following the closure, the plants that manufacture Furazolidone conducted maintenance, resulting in a shortage of inventories in the region. In China, FOB prices in Shanghai escalated by 5.1% compared to the next quarter, with values evaluated at USD 15650/MT in September.
As it followed the same market pattern as the Asia Pacific, the price trend for Furazolidone API in the European region jumped higher in the third quarter of 2022. The prices of Furazolidone API surged due to a lack of inventories to cater to overall demand from the domestic market as the accessibility of imports from China, a significant exporter, weakened. As inventory levels decreased, supplies remained insufficient. Moreover, end-user Pharmaceutical industries remained under pressure as the output of this industry was underwhelming, with consistent offtakes from the downstream pharmaceutical sector. Therefore, towards the end of the quarter, the CFR Hamburg prices of Furazolidone API in Germany were assembled at USD 17200/MT with a quarterly inclination of 3.3%.
In the North American region, Furazolidone API witnessed an overall negative market sentiment in the second quarter of 2022. In the USA, the Furazolidone API prices were assessed at USD 17800/MT with a declination of 5.9% until May and increased to USD 18200/MT in June. On the supply side, suppliers could meet demand since they had ample inventory, thanks to continuous offtakes from end-user sectors. Imports improved following China's ports' gradual opening in the coming weeks. An industry expert stated, "The prominence of supply-related issues elevates the likelihood of a period of low growth and elevated inflation levels since supply shocks affect the prices and reduce economic activity. China's economy continued to export more goods to the United States; despite the Covid shutdown, but the lengthy supply bottleneck nonetheless constrained it.
With weak demand in the Asia-Pacific region, the Furazolidone API market started falling in the second quarter of 2022. In China, the Furazolidone API prices declined by 6.3% in May and increased by 1.5% in June, FOB Shanghai. The production rate of the Furazolidone API market was harmed from the end of March as China enacted a lockdown to manage the outbreak. Market expectations were low, the supply of popular factory brands was sufficient, and a lower current market price index heightened competitiveness. Price competition among producers leads to a drop in price, enhancing patients' affordability and raising demand for finished drugs from this API across Asia-Pacific countries, particularly in China and India. Thus, by the quarter ending June, prices of Furazolidone API settled at USD 15230/MT in China.
The trend of Furazolidone API in the European region has decreased to an acceptable price in the second quarter of 2022 due to lukewarm market sentiments on the back of slow trading activity, with cheaper imports limiting buying interest. However, buyers are holding back in expecting further substantial price drops. However, Furazolidone demand from pharmaceuticals, a significant downstream, has remained relatively flat due to high inventories in the market. Also, the Russia-Ukraine war raised pressure on upstream values, which caused a demand-supply imbalance for various commodities. Upstream Nitrofuran prices had also dropped to a certain level, leading to the considerable price disparity between raw materials and Furazolidone. Thus, the prices of Furazolidone API in Germany settled at USD 19700/MT in June.