For the Quarter Ending June 2023
North America
In the United States, Neomycin Sulphate prices showcased a mixed trend in the second quarter. The prices rose 0.29% in May due to increased end-user demand coupled with new inventory replenishment activities, keeping the market situation favorable. The manufacturing PMI (Purchasing Managers Index) hit 48.4 in May, indicating a slowdown in the US manufacturing sector. This shows that supply from manufacturers and suppliers has been constrained due to reduced business activity. However, consumer demand remained strong, leading to higher Neomycin Sulphate prices in May. On the other hand, prices fell 0.69% in June from May due to sluggish offtakes across end-user industries. Domestic suppliers have adequate Neomycin Sulphate stockpiles, leading to continuously falling costs in the domestic market. Furthermore, high Federal Reserve interest rates have reduced demand for Neomycin Sulphate in the market, further supporting the downtrend. In addition, the US dollar's appreciation against the Chinese yuan in June increased imports to the US market, increasing the supply, which further put downward pressure on neomycin sulphate prices.
Asia Pacific
Neomycin sulphate prices in China showed different trends in the second quarter. Neomycin Sulphate prices rose 0.44% in May from April levels due to the persistence of domestic demand and ongoing operations activity. China's purchasing managers' index (PMI) fell to 48.8 in May from 49.2 in April, signaling a slowdown in factory activity, leading to a reduction in inventories among manufacturers and market suppliers to meet strong market demand, pushing prices higher. In contrast, the price of neomycin sulphate fell 0.83% in June from May due to the decline in new orders and consumer purchasing activity. The official PMI for the manufacturing sector rose to 49.0 in June from 48.8 in the previous month, signaling a slowdown in manufacturing activity. Production decreased due to weak demand from end users. However, prices are kept low as market participants hold enough inventory to meet current market demand. In addition, China's exports fell 12.4% in June, leading to an increase in neomycin sulphate availability in the Chinese market, supporting the downtrend.
Europe
In Germany, the situation of the Neomycin Sulphate market showed a mixed trend throughout the second quarter. The price of Neomycin Sulphate rose slightly in May to 0.34% from April, then fell to 7.62% in June. Prices rose in May due to limited inventories among traders and suppliers, coupled with increased demand from end-user industries. Germany's manufacturing purchasing managers' index (PMI) fell to 43.2 in May from 44.5 in April, reflecting weaker business activity, lower inventories of market participants, and delays in deliveries to meet market demand, leading to higher neomycin sulphate prices. In June, the German economy was impacted by rising inflation and an interest rate hike by the European Central Bank, resulting in higher food and energy prices. This has increased the cost of living and reduced consumer purchases, supporting the downtrend in prices of neomycin sulphate. In addition, the appreciation of the Euro against the US dollar in June made imports cheaper and also increased the supply of neomycin sulphate in the German market. This resulted in decreased prices of Neomycin Sulphate.
For the Quarter Ending March 2023
North America
Throughout the first quarter, the prices of Neomycin Sulphate inclined in North America on account of Strong market sentiment, which started to develop for Neomycin Sulphate across the USA in early January and continued throughout the end of March due to continuous orders from domestic buyers. Also, traders encountered the costliest import from China as the Chinese currency gained against the US dollar, appreciating nearly 3% in January alone, keeping the prices in the northward direction. Moreover, consistent orders from the end-user sector kept the market trend for Neomycin Sulphate on the sturdy side until the end of this quarter. With this, the prices of Neomycin Sulphate went in the upward direction with a settlement of USD 13800/MT in the United States.
APAC
In the APAC region, Neomycin Sulphate prices, particularly in China, demonstrate an incremented trend as the first quarter of 2023 ends. In the month of January, Neomycin Sulphate prices significantly increased on the back of healthy demand from the pharmaceutical and healthcare sectors. The end-user markets from the domestic as well as the international technically resumed on a bullish note with a boost in orders after the Lunar New Year vacation. Moreover, the market sentiments somewhat improved in China during the holiday-shortened month of January, primarily in anticipation of growing demand from downstream sectors as both consumption and production increased when the government abandoned its zero-COVID policy. Following this trend from February until March also, the prices of Neomycin Sulphate increased at a moderate level, mostly brought on by the steadily rising demand and consistent inquiries from end-user sectors. With this, the cost of Neomycin Sulphate ended the first quarter with a price settlement of USD 12488/MT in China.
Europe
Neomycin Sulphate market trends in Europe in the first quarter of 2023 were comparable. The market trend started on the stronger side and continued throughout the month of March. In Germany, the price of Neomycin Sulphate grew at a high pace in early January due to an improvement in market sentiments. Also, German consumer prices improved more than expected in February because of lowering inflation and decreased energy costs, which progressively enhanced consumer confidence. Additionally, improved trade activity further supported the positive market sentiments throughout the first quarter of 2023. With this, the cost of Neomycin Sulphate was assembled at USD 15990/MT in the German Market.
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.
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.
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.
