For the Quarter Ending September 2022
In North America, after prices for Sulfanilamide API settled at $24680/mt in August, prices only decreased until the middle of quarter 3. Prices eventually began to incline, though, and in September, they finally settled at $25380 per MT. The zero-covid policy of China severely limited the supply of this product across the country, as it is mainly imported as a pharmaceutical ingredient. However, the domestic merchants had adequate inventory to meet the whole downstream demand. The second half of Q3 saw the forced closure of some Chinese manufacturing facilities due to the heat wave and a power constraint, which had a negative effect on US trade. The US's high-interest rates, constrained supply, and high inflation are just a few of the factors that the country's heavyweights and economists blamed for the nation's deteriorating demand and market conditions.
The third quarter of 2022 saw a decline in the market trend for Sulfanilamide API in the APAC region as FOB Shanghai prices in China dropped from USD 22120/mt to USD19920/mt from July to September. The price chart for this product was significantly impacted by the weak demand in the pharmaceutical sector during the first half of the quarter. However, due to unanticipated circumstances, such as the country's extreme weather conditions and power outages, important suppliers postponed placing big orders, which led to sluggish offtakes and weak downstream demand in the nation. When the markets reopened in the final week of July following the suspension, several manufacturing plants performed maintenance, which also negatively affected the price trajectory of Sulfanilamide API.
In Europe, the third quarter of 2022 had a rise in the CFR Hamburg discussions for Sulfanilamide API in Germany, which increased from USD 27120/mt to USD27890/mt between July and September 2022. The instability in Russia and Ukraine, as well as the lockdown and port restrictions in China, added to the already challenging economic climate in Europe (a major supplier). Additionally, the end-user pharmaceutical industries' offtakes were sluggish in the first half of this quarter but later soared, i.e., both demand and supply from China.
The North American region observed a mixed market sentiment in the prices of Sulfanilamide throughout the second quarter of 2022. The demand from end users remained active towards the start of the quarter, impacting the market sentiments of the product, Sulfanilamide, in the regional market. The prices of API remained high as the transportation of the same from major supplying country China remained tight. Uncertainty in feedstock availability with the drug manufacturers led to a price hike in the second quarter. Towards the quarter end, the market trend declined as API manufacturers faced less inquiry about the products leading to a decline in the prices of Sulfanilamide in the regional market. The prices recorded in the end of q2 were settled at USD 24040/MT CFR Los Angeles.
In the second quarter, the market prices of Sulfanilamide witnessed mixed sentiments in the Asia-Pacific region on the back of static demand for the product in the regional market. Indian and Chinese markets remained static throughout the quarter as the operational rate of the product halted in the market. China faced certain natural calamities and lockdown curbs, which halted the operating rate of Sulfanilamide in the Asia-Pacific market. Towards the mid-quarter, the market prices of Sulfanilamide declined as the pharmaceutical drug manufacturers had ample feed availability to cater to the demand from downstream sectors in the regional market. The price dynamics regained their strength at the quarter end on the back of firm demand for Sulfanilamide from end users’ sectors with the settlement at USD 22470/MT FOB Shanghai in China.
The second quarter of 2022 started with brisked prices of Sulfanilamide in the European market as the demand from end-use consumers remained high. API transportation remained in a frenzy in China as the operational rate of the product remained sluggish. European suppliers faced a frenzy API supply leading to a feeding shortage, consequently increasing the production cost of Sulfanil amide in the regional market. European countries also faced shortage of stocks and high energy costs, significantly increasing the regional market prices. Towards the mid-quarter, the prices declined as the drug manufacturers had sufficient API to fulfil the domestic demand. Being anti-fungal, the demand for Sulfanilamide remained on the upper edge throughout the quarter. The prices recorded in the end of q2 were settled at USD 26370/MT CFR Hamburg.