For the Quarter Ending December 2022
North America
The Q4 of 2022 saw a decline in the price of Neomycin Sulphate in the North American market, with CFR New York prices settling at USD 14315/MT in October due to weak demand from the downstream pharmaceutical industry in the United States. Despite low domestic consumption rates, production rates were maintained at their optimum levels. However, these costs dropped further in November, to USD 13250/MT in December on the domestic US market. As the US economy finally began to recover and the port on the east coast dramatically decreased ship backlogs, the US supply chain steadily improved in H2 of 2022. Because of the decreased shipping demand caused by slower consumer spending and a decline in industry activity, the US supply chains were more flexible, resulting in a dip in product prices.
Asia- Pacific
Neomycin Sulphate prices in the Asia-Pacific region continued their downward trend throughout the fourth quarter of 2022, falling to USD 11900/MT in December after settling at USD 12750/MT in October due to weak demand from downstream pharmaceutical industries. The Golden week closure of industrial facilities in China from October 1 and 7 resulted in a slow rate of contraction in the manufacturing sector this month. The recurrence of Covid cases at the end of October caused logistical restrictions and end-user run rate limitations, which led to a buildup of Neomycin Sulphate inventory and reduced offers. In addition, prices decreased as consumers continued to purchase products they needed amid the domestic market's declining demand.
Europe
Not just in North America and Asia Pacific region, the Neomycin Sulphate market in the European region also witnessed relatively similar market dynamics, where the prices declined in the fourth Quarter of 2022. German Neomycin Sulphate saw a dip in market sentiments, with CFR Hamburg prices assessing at USD 16580/MT in October before falling even more in December to USD 15318/MT as domestic demand was lower than expected, especially from the primary end-user pharmaceutical industry, due to pessimistic market sentiments. Market insiders held a bearish mentality because of low import quotations from Asian countries. Additionally, high stock levels forced dealers to deliberately lower their prices in order to empty their limitless inventories. Additionally, when port congestion concerns subsided, the cost of shipping goods from Asia to Europe was also reduced.
For The Quarter Ending September 2022
North America
The Neomycin Sulphate market witnessed a stable trend in the North American region in the third quarter of 2022. The market was steady due to steady demand and surplus availability of inventories, impacting the price dynamics of Neomycin Sulphate in the region. However, removing the lockdown in the exporting countries and production resumption kept the supply chain firm in the regional and overseas markets. Also, demand from the downstream pharmaceutical and other industries has declined throughout Q3 2022. Weak market sentiments compelled domestic merchants to lower their quotations to encourage more end-user enquires. Towards the end of Q3 of 2022, Neomycin Sulphate prices were assessed at USD 15520/MT for CFR New York.
Asia- Pacific
Neomycin Sulphate prices fluctuated in the Asia- Pacific region throughout the third Quarter of 2022. During July and August, prices of Neomycin Sulphate have showcased an upward trajectory in the Chinese market, backed by a lowered rate of supplies and a disrupted supply chain. The reason behind the limited availability of the product across the regional market was frequent lockdown restrictions, the shutdown of facilities for maintenance, and problems related to power outages. Towards the end of Q3, prices dropped by 1.1%, supported by sufficient stockpiles in the region as production in facilities was restarted. Also, demand from the downstream industries remained stable to weak amid the slowdown in China's economy. As a result, prices of Neomycin Sulphate FOB Shanghai were assessed at USD 14100/MT during September.
Europe
In the European region, the price trend of Neomycin Sulphate showcased a marginal increase in the first half of the 3rd quarter of 2022 due to balanced market dynamics. However, prices stabilized at USD 18240/MT in August and declined in the latter weeks of the quarter. Therefore, stagnant behavior in price trends was due to numerous factors, such as the stable supply of inventories in the domestic market and moderate demand from the end-user pharmaceutical sector. However, by the H2 of Q3, the market situation started to change due to excessive stocks and decreasing demand, which further affected the product price trend. Thus, the prices for Neomycin Sulphate CFR Hamburg settled at USD 17950/MT in September 2022.
North America
The North America Neomycin Sulfate market showed a rise in prices in the first half and got stable by the second half of Q2 2022 due to the fluctuations between supply and demand. In the first half of the quarter, the costs of Neomycin Sulfate in the United States were increased due to the lower inventory level and the decline in imports from China. Because of the rising inflationary pressures and supply-chain disruptions supported the prices. Later from the second half of the quarter, imports from China improved as China lifted the area's lockdown and slowly returned to the normal market in mid-quarter. And for some reason, purchasers' interest waned, leading most buyers to withdraw and adopt a wait-and-see strategy, only purchasing when necessary. The CFR New York prices for Neomycin Sulfate were assessed at USD 15540/MT in the United States at the end of the quarter.
Asia- Pacific
During the second quarter of 2022, the prices of Neomycin Sulfate in China showcased fluctuations in the Asia-Pacific region due to mixed market sentiments with frequent changes in supply-demand dynamics. With the onset of a quarter, FOB prices continued to rise to 7% and were recorded at USD 13600/MT in April due to a strict lockdown from 28th March in Shanghai, which halted the manufacturing units and affected the production rate in the regional market. Furthermore, amidst the Russia and Ukraine war coupled with the shutdown in China, local manufacturers have been facing a limited supply to cater to domestic demand. In the H2 of Q2, prices decreased up to USD 13000/MT as manufacturers started exporting existing stockpiles at lower costs and reached USD 13440/MT by the end of the quarter due to improve in demand from downstream pharmaceutical industries.
Europe
In the second quarter of 2022, North America's Neomycin Sulfate API prices surged due to inadequate supply and increased demand fundamentals. Supply chain disruptions due to the Russia-Ukraine invasion have severely hampered trading activities, resulting in higher freight charges and escalating costs in the quarter. Higher offtakes from the downstream pharmaceutical sector have pressured the Neomycin Sulfate market sentiments in the regional market. The prices in the European market have increased by 2.9%, supported by a declination toward inventories of Neomycin Sulfate has substantially affected market value. As a ripple effect, the prices of Neomycin Sulfate API in Germany settled at USD 18000/MT.
