For the Quarter Ending June 2023
North America
Across the North American region, the costs of Povidone portray a plunging pricing trend as that of the APAC region. Although, throughout the second quarter, costs of Povidone demonstrate a stable trend with an average increment of 0.66% across the North American region. However, at the beginning of the second quarter, the prices surged drastically, owing to its increase in uptake from downstream pharmaceutical and healthcare sectors. Additionally, the suppliers slightly increased domestic prices because of an increase in production costs in exporting countries, which improved the market activity. Moreover, moving toward May, the prices started to drop significantly, which was further reinforced by winning upstream (1-butanediol) costs. Nonetheless, in June, Povidone cost across the district was $10605 / MT CFR Houston. The destocking of existing inventory due to seasonal changes, as some parts experienced dry weather while other parts experienced heavy rains during June, also contributed to the decrease in Povidone price for this month. Given that the consumer price index in North America, mainly in the U.S., increased by 0.1 percent in June in 2023 compared to May, domestic providers of Povidone have enough inventory to meet nearby demand for Povidone for the second half of 2023.
Asia Pacific
The costs of Povidone throughout the APAC region demonstrate a diminishing market sentiment., Although, at the start of the second quarter, the prices augmented across the Chinese market. April's upward trend was largely driven by the increase in demand from end-use industries, including pharmaceuticals. Also, increased production rates in order to refill the inventories with fresh stock and to cater to the overall surging inquiries from the international market, the market situation remained strong. Also, In April, Chinese exports performed better than expected as domestic and international inquiries remained above average, while ocean freight rates remained low. On the North Side, the market trend of all commodities was maintained as China purchased Russian oil at higher-than-expected prices, which affected the manufacturing activity, according to traders. Furthermore, moving toward May, the prices for Povidone started to drop considerably and continued to mimic a similar trend throughout June. This price trend was supported by decreasing upstream 1-Butanediol production costs in the domestic market and fragile inquiries. However, the inventory level for both downstream Povidone and upstream 1-butanediol was more than enough to balance the overall domestic and international inquiries. With this, the prices for Povidone at the end of the second quarter were settled at USD 9950/MT FOB Shanghai in China.
Europe
Povidone prices within the German market followed a market trend of the APAC region during the whole Second quarter of 2023. With the start of Q2, the prices surged drastically across the region resulting in higher purchasing activity, resulting in higher order placement by the traders. Furthermore, with the commencement of May, a declining trend throughout the second quarter of 2023 was witnessed. The local retailers' abundance of stocks along with declining upstream 1-butanediol costs, contributed to the depressing market environment until the final weeks of June. Moreover, As Germany is particularly struggling with June's heatwave, market participants have cut back on previous inventories due to lower inquiries and fears that tepid temperatures will degrade goods and result in significant profit losses. Because of this, they continued to focus on cleaning up and withdrawing recent listings throughout the end of Q2-2023. However, the buyers were also reluctant to place large orders due to the onset of seasonal changes. With this, the prices for Povidone Excipients in the German market were assessed at USD 10185 /MT CFR Hamburg.
For the Quarter Ending March 2023
North America
The market for Povidone saw an improved market environment in the North American region, with slight fluctuations during the first quarter of 2023. According to market fundamentals, prices were projected to be on the higher end because of strong domestic demand. The fact that domestic merchants had enough inventory amongst them compared to the previous quarter also affected the market environment up to February. Povidone values were accessible at USD 10560/MT at the conclusion of the first quarter, showing a declining tendency. However, consumer demand indicators also demonstrated a worse trend after the decline in inquiries, which caused the impetus for imports to slow down in March.
APAC
A reduction in consumer demand from the downstream food, pharmaceutical, and nutraceutical industries causes Povidone market prices to remain on the upper side in the initial month of the first quarter of 2023. Also, the market technically resumed on a bullish note with a boost in orders from domestic and international buyers after the Lunar New Year vacation, supporting the positive demand outlook until the end of February. Moreover, the prices started to decline at a moderate level in the month of March, balancing the overall demand and supply activities. Overall, the prices for Povidone were accessed at USD 10250/MT in China at the termination of Q1 2023.
Europe
The Povidone market in the European area experienced a decline in its prices during the first quarter of 2023. However, Prices inclined in early January and continued until February 2023, which was supported by higher orders from end-user industries, keeping demand strong and continual stock consumption. Also, the government recently established a rule requiring suppliers to keep six weeks' worth of inventory to minimize shortages leaving the market players ordering bulk inventories and eventually influencing the prices in the mid of the first quarter. As March concluded, the Povidone prices started to decrease owing to weak local demand, according to market fundamentals. The market scenario was adversely affected by the large amount of inventory that domestic retailers retained among themselves. At the conclusion of the first quarter, Povidone values were discovered to be USD 10520/MT in Germany.
In the fourth quarter of 2022, the Povidone market in North America experienced fluctuating trend. Prices began to climb in Q4 2022 and continued to do so throughout the first month of the fourth quarter due to high manufacturing costs, numerous logistical issues, and rising inflation. The US inflation Soar to 8.2% in the month of October 2022. Additionally contributing to the price fluctuation were rising transportation costs and port congestion at the major ports. However, Prices begin to decline later in the month of November till the termination of Q4 2022 as a result of weaker inflation (the US inflation rate was 7%, down from 8.2% in October) and decreased end-user sector demand as the holiday season approaches. In December, the Povidone settlement price fell to USD 10380/MT CFR Houston.
The Asia Pacific Povidone market saw a turbulent fourth quarter in 2022. It was witnessed that the prices rose considerably till the second month of the quarter due to increased end-user sector demand, several logistical challenges, and rising inflation. The Producer Price Index (PPI) grew by 0.9% while the Consumer Price Index in China increased by 2.8%, both of which had an impact on the market. The "Zero-Covid" policy in China has so far had a big impact on investor confidence and the nation's economic operations. The market remained competitive because of rising production costs brought on by rising energy prices as well as increased domestic output to meet demands from both domestic and foreign markets. Later in December, as domestic merchants had sufficient stock on hand, Povidone prices did begin to decline. The market's ongoing decline was also influenced by the ease of strict covid policies and the weak downstream demand. In December, the settlement price for Povidone fell to USD 10750/MT FOB Shanghai.
In the fourth quarter of 2022, prices for Povidone showcased a soaring trajectory in the European region. The downstream market for the pharmaceutical sector was seen to have a steady demand for Acebutolol API. Price hikes were brought on by ongoing port congestion and supply disruption in the European region throughout Q4 022. Also, the European annual inflation rate was 10.6% in Q4 2022, up from 9.9%. Retailers in Europe decide to refill their inventory due to the approaching Christmas season considerably. Also, to ease the inflationary pressure, the market players were propelled to raise their quotations in order to slow down the demand and consumer consumption. The cost of Povidone was USD 9890/MT CFR Hamburg toward the end of Q4 2022.
