For the Quarter Ending December 2022
The price of Sulfamethazine in the North American market fell in the fourth quarter of 2022, with CFR New York prices settling at USD 14920/MT in October Due to sluggish demand from the American downstream pharmaceutical sector. The production rate was kept at its peak despite low domestic consumption rates. In the domestic US market, these prices did, however, decrease further in December to USD 14580/MT. The US supply chain progressively improved in H2 of 2022 as the US economy finally started to revive and the port on the east coast drastically reduced ship backlogs. The US supply chains were adaptable, which led to a drop in product costs because of the decreased shipping demand brought on by slower consumer spending and a loss in industrial activity.
Sulfamethazine prices in the Asia-Pacific area kept declining during the fourth quarter of 2022, dropping to USD 12650/MT in December after settling at USD 12900/MT in October due to sluggish demand from downstream pharmaceutical businesses. A modest pace of contraction in the manufacturing sector this month was caused by the Golden week shutdown of industrial facilities in China from October 1 to October 7. End-user run rate limits and logistical constraints brought on by the reappearance of Covid cases at the end of October generated a build-up of Sulfamethazine inventory and decreased offers. Additionally, prices dropped as shoppers kept buying what they needed despite the local market's dropping demand.
Not only in North America and the Asia-Pacific region but also in Europe, the Sulfamethazine market had somewhat similar market dynamics, with prices falling in the fourth quarter of 2022. Market sentiment for German Sulfamethazine declined, with CFR Hamburg prices assessed at USD 15980/MT in October and dropping even further to USD 15720/MT in December. Due to negative market sentiments, domestic demand was lower than anticipated, particularly from the key end-user pharmaceutical industry. Because import prices from Asian nations were low, market insiders had a gloomy outlook. Large stock levels additionally pushed merchants to cut their prices to clear off their immense stocks. Moreover, when worries about port congestion subsided, the price of transporting goods from Asia to Europe was reduced.
For the Quarter Ending September 2022
With prices assembled at USD 15550/MT in July, the North American Sulfamethazine market started in Q3 of 2022 with stable sentiments. Entering July, buyers only made purchases for instant use caused of both the steady offtakes and the moderate end-user demand. However, Sulfamethazine prices slightly increased as August approached due to an improvement in orders but dropped again by the termination of Q3. The US mainly imported Sulfamethazine from China, whereas most factories in China were under maintenance, resulting in lower imports into the US. Therefore, towards the end of Q3, the CFR New York prices of Sulfamethazine were evaluated at USD 15160/MT.
The Asia-Pacific Sulfamethazine market commenced the 3rd quarter of 2022 on a negative note, with a 4.1% decrement in prices. However, values started inclining from mid-H1 and declined again in the last weeks of the quarter. Therefore, continuous variation in price trends was due to several factors, such as the unstable supply of inventories in the domestic market and flickering demand from the end-user pharmaceutical sector. In addition, turbulences in factory production were seen due to lockdown restrictions, a turnaround of manufacturing facilities for maintenance, and a severe power crunch driven by extreme heat waves and drought. As a ripple effect, the FOB Shanghai prices of Sulfamethazine settled at USD 13950/MT in September 2022.
During the third quarter of 2022, Sulfamethazine's price on the European market fluctuated, mirroring the pricing pattern on the North American and Asian markets. In July, the lack of interest from the downstream pharmaceutical industry inquiring about Sulfamethazine in the German domestic market lowered market sentiments. Sulfamethazine prices increased in August; however, this was due to logistical problems and a lack of supplies. Additionally, China's import activities into Germany were unstable for several reasons, including frequent lockdowns, factory closures, and high-temperature maintenance. Therefore, when the threat of a recession loomed from late August to the last week of September, dealers were ready to negotiate over the purchases. As a result, towards the quarter's conclusion, Sulfamethazine pricing in Germany was fixed at USD 16160/MT.
In the second quarter of 2022, the US Sulfamethazine API trend had a declining movement due to sufficient product availability and low purchasing appetite in the region. Sulfamethazine API's price decreased in the North American region as trade remained sluggish due to less expensive imports suppressing demand. Moreover, imports in the United States remained usual, with stockpiling products pressuring the end-user to clear their existing stocks, further resulting in lower prices in the North American regional market. From April, there was a noticeable decrement in the Sulfamethazine API market. This represented discouraging indicators of demand from downstream pharmaceutical sectors and was significantly lower than in previous months. The CFR prices for Sulfamethazine API were evaluated at USD 17900/MT in the United States at the end of the quarter.
During the second quarter of 2022, the Sulfamethazine API market showcased mixed sentiments in the Asia-Pacific region. In the first half of the second quarter, the supply side continued to increase; there was negative pressure on the spot market. The utilization rate of domestic Sulfamethazine API enterprises continues to decline. Decreased prices of raw materials such as Pyridine and Acetylacetone also impacted the price trend of Sulfamethazine API. From May end, manufacturers started working towards uplifting the market with recovering behavior, but the overall market was still on the lower side; the overall demand entered the average level at the end of June. Thus, by the quarter ending June, the FOB prices of Sulfamethazine API settled at USD 14800/MT in China.
In European nations, Sulfamethazine prices witnessed a negative trend in the second quarter of 2022 compared to the first quarter. From April, Sulfamethazine prices plunged amidst sluggish buying and the availability of low imports. Sulfamethazine prices have fallen amid slow trading activity, import pressure, and inexpensive raw materials. Weak demand, customer destocking, and competitive import prices continued to drag down European Sulfamethazine. With a quarterly declination of 10.6%, prices of Sulfamethazine API in Germany settled at USD 16000/MT in June.