For the Quarter Ending June 2023
North America
In the US, a decrease of 6.68 percent is seen in the Vancomycin Prices in May compared to the levels observed in April. The prices decreased due to increased supply, less demand, and weakening of currency. China and India are the two biggest producers of Vancomycin. The two countries increased their production in May to keep up with the increased demand for Vancomycin hydrochloride. Also, some nations eased their regulations on the export of Vancomycin. These factors have increased the global availability of Vancomycin by allowing producers to export more Vancomycin to the US. Apart from that, the war in Ukraine and the rise in inflation subsequently led to decreased demand for Vancomycin hydrochloride in the market. However, an increment of 1.98% is observed in June from May due to surging demand from end consumers. Aside from that, PMI (Price Manager Index) decremented in June contrasted with earlier months coupled with more demand resulting in the rise of Vancomycin prices in the US market.
Asia Pacific
The prices of Vancomycin decreased by 6.80 percent in May compared to the levels noticed in the previous month. The factors responsible for this downward trend include more supply, decreased demand, and currency fluctuation. The supply of Vancomycin increased due to the lowering cost of raw materials required in making the Vancomycin API that put downward pressure on Vancomycin prices. China’s PMI (Purchasing Manager Index) increased to 50.9 in May from 49.5 in April, demonstrating expansion of China’s industrial activity coupled with limited demand led to a fall in the Vancomycin prices. Aside from this, the Chinese Yuan strengthened against the US dollar, which made Vancomycin expensive for consumers in other countries resulting in a further decrease in demand for Vancomycin API. This is because Vancomycin is priced in US dollars, so when the yuan is strong, it requires more yuan to purchase the same amount of Vancomycin. However, an increment of 1.93% has noticed in June due to a rise in demand from end consumers along with better trade activity.
Europe
In Germany, a downward trend of 6.72 percent is seen in May from the previous month in the second quarter. The factors supporting this downward trend include weak purchasing momentum and overflowing stocks. The supply of Vancomycin rose due to increased manufacturing output and more exports of Vancomycin from foreign countries. Apart from that, the German government eased some of the protocols on the imports of generic medicines and increased the availability of generic Vancomycin, leading to a further decrease in Vancomycin prices. Also, the PMI (Pricing Manager Index) decreased to 42.9 in May from 44.5 in April, indicating a slowing down of the German economy. The economy of Germany is impacted by the war in Ukraine that increased inflation by 7.9% in May, resulting in high food and energy prices. This led to an increase in the cost of living that decreased the demand for Vancomycin. In June 2023, an increment of 1.92 percent was noticed as the demand for Vancomycin surged from end-user sectors.
For the Quarter Ending March 2023
North America
The Vancomycin Hcl displayed steady market dynamics with minimal variation in the first quarter of 2023. As Q1 2023 got underway, prices increased through the end of February, supported by continuous purchases from the pharmaceutical end-user sector. Also, the ease of trade disruption supported the Vancomycin Hcl market trend from January. Furthermore, by the end of Q1 2023, prices had decreased because there were few inquiries and sufficient supplies among the merchants. Low freight costs also contributed to the market's current state of weakness. At the termination of Q1 2023, the settlement price of Vancomycin Hcl API accessed at USD 628105/MT FOB Shanghai with an average quarterly inclination of 0.13%.
Asia Pacific
Vancomycin Hcl prices witnessed a stable upward trajectory in the APAC region in the first quarter of 2023. After the Lunar New Year break, the Chinese pharmaceutical markets technically returned on a positive note with an increase in orders and shipments from both the domestic and the international market. As the market was reopened, factory and port operations resumed. The prices stabilized as the strict Covid laws lifted, revitalizing the second-largest economy in the world. Also, the recovery of production quickened, along with the feeble demand kept the market weak. At the termination of Q1 2023, the settlement price of Vancomycin Hcl API accessed at USD 617455/MT FOB Shanghai with an average quarterly inclination of 0.60%.
Europe
In the first quarter of 2023, Vancomycin Hcl showcased fluctuating market dynamics. With the commencement of Q1 2023, the prices rose till the end of February, backed by consistent offtakes from the pharmaceutical end-user sector. Further, the ease in trade disruption reinforced January's market trend of Vancomycin Hcl. Also, the Euro currency apprenticed against the USD in the month of January, influencing the market sentiments. During the month of March, the settlement price of Vancomycin Hcl API came down to USD 625580/MT CFR Hamburg from USD 660840/MT, with an average quarterly declination of 1.62%. Moreover, by the termination of Q1 2023, the prices dropped as the inquiries remained feeble and the merchants had enough supplies among them. Also, low freight charges further supported the weak market situation.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the price of Vancomycin Hydrochloride increased from $718525/mt to $730650/mt in October and November before falling to $705755/mt in December. China's Golden Week during the first week of October prevented the importation of Vancomycin Hydrochloride from that nation. Due to their huge inventories, domestic suppliers were able to meet the total demand during most part of the quarter, and also, offtakes in the end-user industries remained above average. The second part of the quarter saw a shifting pattern in the market for Vancomycin Hydrochloride because of the sudden rise of Covid cases in China. The supply chain did, however, gradually improve in the second half as the economy expanded, and there was a considerable drop in ship traffic at the ports.
Asia Pacific
Vancomycin Hydrochloride prices in China showed a decreasing price trend during the fourth quarter of 2022 in the Asia Pacific region, with FOB Shanghai values falling from $647455/mt to $606455/mt from October to December. The orders for China's API sector producing Vancomycin Hydrochloride declined steadily during the first week of October as a result of the shutdown of industrial facilities for the Golden Week. It was challenging for the market to catch up to the small rise seen in some downstream industries during the first part of Q4 because Chinese traders had to deal with a range of contradicting signals after a one-week break. However, positive demand kept the market afloat. Large inventory allowed domestic producers and suppliers to meet the total demand for the whole quarter. In reaction to criticism and severe turmoil in the country, the administration revised its zero-covid policies, making the country vulnerable yet again.
Europe
Vancomycin Hydrochloride costs decreased in Europe in the fourth quarter of 2022, with CFR Hamburg values falling from $735110/mt to $720405/mt between October and December. Demand from the overseas market was stronger during the first half of the quarter than it was in December due to the unexpected increase in covid cases, which caused a gradual decline in demand. Domestic demand for Vancomycin Hydrochloride in Germany remained strong during the quarter despite rising energy and raw material costs.
The prices of Vancomycin Hydrochloride fluctuated in the North American market throughout the third quarter of 2022, backed by wavering downstream demand from the pharmaceutical sector. The market value of Vancomycin Hydrochloride decreased in August due to reduced demand from the downstream pharmaceutical industry. Also, with enough existing inventories among domestic merchants and traders, the Vancomycin Hydrochloride API market was feeble. Overall, throughout Q3 2022, the prices increased with rising inflation in the US market, keeping the market sentiments robust. The input cost and firm operational rates propelled the market to witness decreasing trajectory. High input costs and increased freight charges positively supported the vancomycin hydrochloride prices in the domestic region. With the termination of Q3, the prices settled at USD 705530/MT CFR Los Angeles with an average quarterly inclination of 1.20%.
The third quarter of 2022 saw conflicting emotions in the Vancomycin Hydrochloride market. Production in Chinese provinces ceased at the start of Q3 2022 due to adverse weather conditions and the ramifications of the strict zero-covid rule. Due to sluggish pharmaceutical industry demand, prices abruptly dropped. Due to consistent demand and supply market sentiments through the conclusion of the second month of Q3, the price trend remained downward. The destocking of the current supply also impacted the pricing of Sulfamethoxazole. Price increases in Asia-Pacific started in the third month of Q3 2022 due to supply chain disruption and unbalanced shipments. In addition, many changes in supply and demand throughout the quarter impacted domestic market prices for vancomycin hydrochloride. The value reached USD 630460 /MT at the end of Q3, with an average quarterly declination of 0.99%
Due to irregular downstream demand, Vancomycin Hydrochloride market prices fluctuated in the European countries during the third quarter. The market value of Vancomycin Hydrochloride first increased in July, then decreased in August, and then expanded once more in September. Altogether the market trend declined in the third quarter of 2022. The significant fall in the prices of Vancomycin Hydrochloride API was backed by decreasing demand from the pharmaceutical industry. Also, enough inventories among the domestic merchants and suppliers forced them to lower their quotations to maintain the margin. Also, rising inflation propelled decreasing demand from the consumer’s end. With the termination of Q3, the prices settled at USD 720115/MT CFR Hamburg with an average quarterly declination of 0.67%.
