For the Quarter Ending June 2023
North America
Oxytetracycline hydrochloride prices fell 3.96% in June compared to levels noticed in April. The price of oxytetracycline hydrochloride has fallen in the United States due to ample supply and weak demand. Market momentum continued to deteriorate due to the erratic supply and demand relationship. However, weak market activity and lower product supply led to price cuts in the second quarter. China is the largest API exporter to the United States. Due to the ease of trade, oxytetracycline hydrochloride exports to the United States increased, leading to increased supply in the US market, putting downward pressure on prices. Additionally, inflation slowed in the second quarter as the Federal Reserve raised interest rates, which subsequently reduced demand for oxytetracycline HCl in the US market, resulting in lower prices. In addition, the appreciation of the US dollar against the Chinese yuan in June made US imports cheaper and increased the availability of oxytetracycline hydrochloride, supporting the downtrend. The unfavorable market situation persisted as weak end-user demand forced market traders and suppliers to decrease prices to clear inventory.
Asia Pacific
Oxytetracycline HCl price fell 3.78% in June compared to April. Factors driving this downtrend included ample supply and falling demand both domestically and internationally. The depreciation of the Chinese yuan against the US dollar shows that the momentum of the Chinese economy remains weak, signaling a slowdown in the global economy and increasing pressure on external demand from the consumer sectors. China's manufacturing PMI remained below 50 in the second quarter, with the National Bureau of Statistics (NBS) posting a PMI of 49 in June, down from 48.8 in May and 49.2 in April, indicating a contraction in the manufacturing sector. This slows down production due to weak consumer demand in the healthcare and pharmaceutical sectors, resulting in lower purchasing activity and fewer new orders resulting in lower Oxytetracycline HCl prices. Meanwhile, the war in Ukraine continued to affect the API supply chain, hindering exports to other countries such as the United States, leading to an increase in supply in the Chinese market, and causing a decrease in Oxytetracycline HCl prices.
Europe
Oxytetracycline HCl prices fell 3.99% in June compared to April levels. Factors such as increased purchasing activity and a decline in inventories in the German market contributed to a decline in prices. In Germany, the June 2023 manufacturing PMI (Purchasing Managers Index) fell to 41 from 43.2 in May and 44.5 in April, indicating a collapse in the manufacturing sector due to the impact of the COVID-19 pandemic. Follow-up queries for new orders declined at a faster rate due to weakening end-consumer demand. The German economy has been hit by rising inflation and an interest rate hike by the European Central Bank, leading to higher food and energy prices. This has increased the cost of living, reduced consumer purchasing activity, and supported the downward trend in prices of Oxytetracycline HCl. The appreciation of the Euro against the US dollar makes imports cheaper and also increases the supply of Oxytetracycline HCl in the German market. This puts downward pressure on the price of Oxytetracycline HCl.
For the Quarter Ending March 2023
North America
Prices for Oxytetracycline Hydrochloride showed an upward tendency in North America throughout the first quarter of 2023; however, the last month demonstrated a decremented trend. Prices increased by more than 5% at the beginning of Q1, helped by a large increase in domestic inquiries from the pharmaceutical and healthcare industries. Also, the market has begun to see signs of strength on the China-to-US trade route, which has a positive sign on consumer demand until the mid of the first quarter. While as March approached, the prices of Oxytetracycline Hydrochloride went down at the same rate by which it inclined in February. This was a result of dulled demand, sufficient stockpiles coupled with lower import momentum. With this, the price of Oxytetracycline Hydrochloride ended at USD 22980 /MT in the United States.
Asia
Throughout the first quarter of 2023 in the Asia Pacific region, primarily in China, the Oxytetracycline Hydrochloride prices demonstrate an upsurged trajectory. This price trend was attributed to a significant surge in domestic and international inquiries. Moreover, the market sentiments somewhat improved in China during the holiday-shortened month of January, primarily due to growing demands following the Lunar New Year because both consumption and production increased when the government abandoned its zero-COVID policy. Supply-chain tensions have significantly eased, resulting in better trading activities with overseas countries additionally, kept the market trend on the upper side until February. However, in the month of March, the prices of Oxytetracycline Hydrochloride went down, leading to a rise in inventories among the market participants. With this, the prices were assembled at USD 13300/MT in China.
Europe
In the first quarter of 2023, Oxytetracycline Hydrochloride prices in Europe followed a pattern like those in China. Prices started to gain momentum in early January with an increase in domestic inquiries. Moreover, German consumer prices also rose more than expected in February because of decreasing inflation and declined energy costs, which gradually boosted consumer confidence. Besides this, the market has begun to show signals of strength in support of an improvement in the trade activity from China to Europe in comparison to the previous month. But the prices went down considerably as March approached its end and were settled at USD 24250/MT in Germany.
For the Quarter Ending December 2022
North America
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.
Asia- Pacific
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.
Europe
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
North America
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.
Asia- Pacific
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.
Europe
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.
North America
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.
Asia- Pacific
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.
Europe
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%
