Chinese Streptomycin Sulphate API Prices Gain During January on Rising Demand

The prices in the Asian Streptomycin Sulphate API market showcased an increasing trend on the back of a surge in the domestic and international demand from the US and German buyers ahead of the increasing orders from drugmakers. However, industrial input prices of Streptomycin Sulphate API increased at one of the fastest rates over the preceding few months from  January as supply constraints were made worse by rising transportation costs. As per the data, the China Streptomycin Sulphate API FOB Shanghai prices settled on January 31 at USD 33105 per metric ton.

After a COVID surge in China, a shortage of Streptomycin Sulphate API among major manufacturers was seen in the last quarter of 2022. Since the optimization of COVID-19 measures in China, more than 200 relevant subsidiary pharmaceutical companies of China, such as National Pharmaceutical Group Co Ltd or Sinopharm drugmakers, have ramped up production to triple capacity in January due to soaring demand for medicines and APIs. Also, rage distribution in order to recover from COVID impacts as soon as possible to answer the government's call to ensure anti-epidemic medical supplies. As a result of high operating rates and input costs, the prices of many APIs have risen.

According to ChemAnalyst, Streptomycin Sulphate API prices could increase if the COVID-19 situation worsens in China after the Lunar New Year holiday. After the Lunar New Year holidays, Chinese buying interest for Streptomycin Sulphate API is expected to rise considerably along with dwindling local inventories and satisfy demand as the China economy returns to normal. Demand indices remain strong despite an anticipated increase in Chinese domestic output. Additionally, as more shipments move west and vessel availability becomes limited, the effect is expected to be felt in shipping freight prices. An increase in the price of Streptomycin Sulphate API might impact overseas suppliers' margins and profitability.