For the Quarter Ending June 2023
North America
Across the North American region, the prices of Penicillin G Sodium demonstrate a mixed price trajectory throughout the second quarter of 2023. At the beginning of the second quarter, the values of ofloxacin surged at a moderate level as the demand from downstream healthcare sectors increased slightly. However, the demand was successfully balanced by the availability of overall inventories among the merchants. Compared to the previous first quarter, the prices surged until the middle of Q2, dropping again as June concludes. Apart from that, the decline in gas prices and core inflation contributed to the US optimistic market trend in April. The positive trend for several sectors, including pharmaceutical excipients and the APIs, was also aided by improved trade momentum, which led to better commerce, a decline in ocean freight costs, and an ongoing increase in consumer demand until the end of May. Moreover, as July concludes, the prices declined steadily across the US market as inquiries from the domestic market were not enough for merchants to place newer orders. Also, change in climatic conditions, such as hotter weather in some regions while colder in others, let them destock their accumulated stocks and place orders on a need basis. With this, the prices for Penicillin G Sodium across the US market were assembled at USD 37515/MT CFR Houston.
Asia Pacific
The price of Penicillin G Sodium, an Active Pharmaceutical Ingredient, during the second quarter, demonstrated a zig-zag market sentiment throughout the second quarter of 2023. As with the beginning of April, Following the market sentiment of the previous month, the price for Penicillin G Sodium decreased. Consumption in the domestic market remained weak in April, while inquiries from the international market improved slightly. The PMI for manufacturing decreased in April from 51.9 to 49.2, below the 50-mark that separates monthly growth from contraction, as market participants had enough inventory to meet the total arrived demand for the month. This was the lowest level of the index since the second half of last year when China started to recover from the pandemic. As the supply started to decrease in May, the manufacturers started to restock the shelves. Suppliers and retailers also sold their finished products at a higher price than usual, which supported the upward price trend for the month of May. Penicillin G sodium ended its Q2-2023 quarter on the weaker side, with feeble demand combined with higher inventory levels again. The price was recorded at $35000 /MT FOB Shanghai in China.
Europe
For the whole second quarter, the prices of Penicillin G Sodium depict a parallel market trend as that of the United States. The prices sustained an upward trend until May while dropping significantly as the quarter ended. April’s price trend was supported by consistent demand balanced with continuous manufacturing activities and supplies among the merchants. While as May 2023 approached, the prices continued to demonstrate an upward trend. This price trend was attributed to the easy availability of downstream Penicillin G Sodium at lower prices than usual from exporting nations such as China, one of the significant exporters of Penicillin G Sodium. However, as June approached, the prices went down steadily, maintaining a steady demand-supply balance within their region. Geopolitical tensions between Russia and Ukraine had a negative impact on supply chains, which was further exacerbated by higher energy prices. This affected businesses and consumers, resulting in a decrease in economic activity. Another major problem facing the German economy is the increasing cost of energy. Germany is heavily dependent on imported energy, and the rising energy prices are affecting businesses and consumers. In total, the prices of Penicillin G Sodium at the end of the second quarter were assembled at US$ 36645 / MT CFR Hamburg.
For the Quarter Ending March 2023
North America
Penicillin G Sodium prices in North America increased throughout the first quarter as a result of a solid market sentiment that began to emerge for the drug across the USA in early January and persisted through the end of February as a result of consistent orders from domestic consumers. Additionally, traders encountered the most expensive import from China due to the Chinese currency's appreciation against the US dollar, which increased by nearly 3% in just January alone and kept prices moving upward. Additionally, steady orders from the end-user market helped to maintain the market trend for Penicillin G Sodium through the end of this quarter. As a result, Penicillin G Sodium prices declined at the end of this quarter, reaching a settlement of USD 43110 /MT in the United States.
APAC
As the first quarter of 2023 comes to an end, Penicillin G Sodium prices in the APAC region, particularly in China, show an increasing trend. Penicillin G Sodium prices rose significantly in January as a result of the high demand from the pharmaceutical and healthcare industries. The end-user markets on both the domestic and global markets technically resumed on a bullish note with an increase in orders. Correspondingly, until February, market sentiments in China remained improved, primarily due to expectations of rising demand from downstream industries. Further, towards the termination of Q1, the cost of Penicillin G Sodium went down at a moderate rate and was settled at USD 39120/MT in China.
Europe
In the first quarter of 2023, the penicillin G sodium market trends in Europe followed the trend of Asia Pacific. The market trend began on a healthy note and remained persisted until the mid of Q1. Early in January, Penicillin G Sodium prices in Germany increased rapidly as a result of an uptick in market sentiment. Additionally, German consumer prices improved in February more than anticipated due to lower inflation and lower energy prices, gradually increasing consumer confidence. Improved trade activity also contributed to the first quarter of 2023's first quarter's positive market sentiments. As a result, the price of Penicillin G Sodium in the German Market was assembled at USD 47120/MT in Germany.
The Penicillin G Sodium market started on a positive attitude and ended on a weaker side within the North American region during the final quarter of 2022. The increased end-user demand from the pharmaceutical sector and a lack of supply from the providers have immensely contributed upsurged price trend of Penicillin G Sodium in the United States. Additionally, the geopolitical tension between Russia-Ukraine, healthy consumer interest, and protracted supply disruption have further aided this price enhancement in the US. However, following mid-q4, Supply chain disruption decreased rapidly over the six months to November and appeared to be stabilized, across multiple measures, including shipping prices. With this, the cost of Penicillin G Sodium was recorded at USD 43205/MT CFR Houston in the United States.
Prices for Penicillin G Sodium began to rise at the beginning of October 2022 throughout the Asia Pacific region, most notably in China and ended on a bearish note due to an increase in demand. Ongoing zero COVID policies and disrupted trade activities additionally supported the market sentiments of Penicillin G sodium within the Chinese market. With this, the cost of Penicillin G Sodium was displayed at USD 38205/MT FOB Shanghai. In addition, prices began to decline sharply at the beginning of December 2022 on the back of increasing Covid infections in China, which had considerably affected the price trends of Penicillin G Sodium.
Prices for Penicillin G sodium in the European region during the fourth quarter followed a similar trend to those in the US. Due to the domestic market's somewhat skewed downstream demand up until the middle of the fourth quarter, prices stayed on the higher side, with the settlement at USD 47255/MT CFR Hamburg. Moreover, with a sudden surge in COVID-19 cases in the Chinese market, the trade flow between Europe and China started to get slower. The current economic challenge with the conclusion of the fourth quarter did, however, cause the demand for goods and services from the end-user industry to remain subdued. Additionally, lower consumer spending habits supported this unfavorable market attitude.
