For the Quarter Ending December 2022
Oxytetracycline Hydrochloride prices in North America oscillated in the fourth quarter of 2022 due to variable demand from the pharmaceutical industry's end-user industries. In the initial two months of Q4 2022, the CFR New York price of Oxytetracycline Hydrochloride increased in the US upto to 5.3% till November end and settled at USD 23560/MT before declining to USD 22460/MT in December. The Golden Week vacation suspended imports, resulting in fewer inventories among US domestic suppliers during the first week of October. As a result, domestic suppliers increased the prices in response to high demand for the product from end-user industries. By the end of the quarter, improvement in import activities from China resulted in sufficient supply in the US domestic market, which caused the cost to be slightly lower. Additionally, the demand from the downstream pharmaceutical industry slowed in December as consumers' interest in purchasing dropped during the year-end season.
Mixed market sentiments were observed in the Asia Pacific region for Oxytetracycline Hydrochloride in Q4 2022. A decrement of 2.9% in price trend was seen in October, with prices settling at USD 13250/MT. During early October, sales for the product marginally declined due to the slowdown in trading activities amidst Golden Week Holiday. After a one-week holiday when the market reopened, the domestic traders faced several contradictory signals, which made it challenging for the participants to keep up with the slow progress witnessed in the downstream industries. At the onset of November, the prices started to increase as the ongoing lockdown measures in some parts of China amid rising COVID-19 cases led to difficulties in production activities. As a consequence, supply shrank, and inventories remained low in the Chinese domestic market. In contrast, demand increased from end-user industries. Therefore, prices remained stable around USD 13450/MT in December due to similar market dynamics as in November.
Oxytetracycline Hydrochloride had oscillating market dynamics during Europe's fourth quarter of 2022. Oxytetracycline Hydrochloride prices in the German market rose to USD 24200/MT till November as a result of reduced import activity from China over the Golden Week vacation and zero Covid-19 limitations, which resulted in low supplies in the local market. Oxytetracycline Hydrochloride prices, however, tumbled 2.9% in December, settling at USD 23500/MT in Germany owing to declining demand from the downstream pharmaceutical and nutraceutical sectors, which had affected the German market's fundamentals and led to a price reduction. Domestic retailers also had adequate inventory to fulfill demand generally, which led to a downward trend towards the end of the quarter.
For the Quarter Ending September 2022
The North American market for Oxytetracycline Hydrochloride commenced the third quarter of 2022 on a positive note, with prices settling at USD 23260/MT in July. However, these prices ultimately dropped from the second half of the quarter and were assembled at USD 22350/MT in September. In the final week of July, many Chinese API manufacturing units were shut down for maintenance, significantly decreasing imports into the US. However, the frequent lockdowns in China, from which most APIs are imported, forced Oxytetracycline Hydrochloride manufacturers to cut their prices, due to which downstream trades were in a solid wait-and-see attitude. As a result, demand from the downstream pharmaceutical sector declined during the second half of the third quarter of 2022.
The price trend for Oxytetracycline Hydrochloride in the Asia Pacific market demonstrated a seesaw trajectory in the third quarter of 2022. The market started in July with negative sentiments but improved in August, with prices settling at USD 18950/MT. The market was out of stock as some plants underwent maintenance, and some had limited their production due to high temperatures. However, the producer faced a huge demand-supply gap in the market, which caused an escalation in the prices of Oxytetracycline Hydrochloride in August. However, the uptrend later decreased in September and was assembled at USD 18400/MT as plants resumed their production entering September because of a decrease in temperature. As a result, the market supply returned to normal, and demand remained regular from the downstream pharmaceutical sector.
In the third quarter of 2022, European Oxytetracycline Hydrochloride showcased similar market fundamentals as witnessed by North America. However, the Oxytetracycline Hydrochloride prices in Germany were inclined to USD 24300/MT on a lack of product availability on the local market. Later in the second half, Oxytetracycline Hydrochloride prices declined, settling at USD 23200/MT. Due to the weak demand for Oxytetracycline Hydrochloride from end-user pharmaceutical sectors in the second half of the quarter, domestic merchants were forced to lower their quotes. However, the declining trend in Europe was due to lower price quotations from China on the back of resumed production activities by the second half of the quarter. Also, logistics problems in Germany due to ongoing transportation bottlenecks led to a continuous shrink in the country’s economy throughout the quarter.
In the North American region, Oxytetracycline Hydrochloride witnessed a negative market sentiment in the second quarter of 2022 due to ample supplies, and domestic buyers were relatively quiet this quarter. Despite the Shanghai shutdown and other Covid-related economic barriers in China, after seasonal adjustment in April, US imports from China surged to an all-time high, significantly affecting the US market of Oxytetracycline Hydrochloride. Suppliers were able to meet demand on the supply side because they had plenty of inventory on hand. Still, demand-wise, offtakes from the end-user pharmaceutical and nutraceutical industries held steady throughout the quarter. In the United States, the CFR prices of Oxytetracycline Hydrochloride were settled at 23000/MT in June.
The market trend for Oxytetracycline Hydrochloride exhibited a negative path in the second quarter of 2022. Participants in the sector claimed that demand in the downstream pharmaceutical and nutraceutical sectors remained weaker than expected. China is the world's largest producer of Oxytetracycline Hydrochloride; its trade restriction has significantly impacted commerce with importing nations. It seems clear that the delays off the coast will take a bit longer to overcome, given the repeated predictions for bottleneck relief with little progress. Manufacturing and logistics are stifled by China's "ineffective" zero-tolerance rules and limitations. In June, the Chinese market assessed Oxytetracycline Hydrochloride FOB Shanghai prices at USD 18800/metric tonne.
Oxytetracycline Hydrochloride in the European market has been declining since April, supported by abundant inventories and shaky demand. In addition, Oxytetracycline Hydrochloride prices also decreased with subdued market sentiment due to a decrease in raw material Terramycin production cost during the second quarter of 2022. Additionally, the market fundamentals have also been hindered by a decline in demand from the downstream pharmaceutical and nutraceutical sectors resulting in a plunge in prices in the German market. Furthermore, in terms of inventories, slowing demand impacted the market dynamics with rising stocks of Oxytetracycline Hydrochloride in major exporting countries, namely the United Kingdom and Germany. The prices of Oxytetracycline Hydrochloride in Germany settled at USD 23900/MT in June with a quarterly declination of 7.1%