Global Minoxidil API Prices to Remain on the Weaker Side: Know Here Why?

At the beginning of December, the Global market for Minoxidil API displayed a deteriorating market sentiment, and it is being forecasted that this trend is likely to continue all the way to the very end. Downstream demand is proclaimed to decline in December as the buying activities reduce compared to the previous month. Additionally, people are already confronting inflation at levels high due to the surge in prices of essentials such as food, energy, and transport that has reduced the purchasing index of the customers significantly. According to several market participants, this scenario might remain on the south side till early q1 of 2023 which is likely to support the weaker price trajectory of Minoxidil API in both Germany and the US regions.

Minoxidil API prices in Germany fell 1.75 percent from November due to fewer domestic market offers and poor trading activity. However, the normalization of freight rates due to the reduction in supply chain suggests that profits may be lower than the recent trend. The main danger is the occurrence of a severe recession and a protracted period of Chinese protests, which might significantly reinforce the reduction in Minoxidil API production and hamper the trading activity.

As the supply chain disruption has decreased significantly over the six months leading up to November and appears to have stabilized now, along with numerous other indicators, including shipping prices, a homogeneous situation is anticipated in the United States. However, it is believed that the inquiries might persist on the softer side. The start of the Christmas holiday may also impact the general market for pharmaceutical APIs, including Minoxidil as the stockpiling of its inventories will begin eventually. Therefore, as mentioned, Minoxidil API prices have fallen by about 1.71 percent from November to the present date and are expected to finish the year on the lower side.

According to the ChemAnalyst analysis: Minoxidil API prices will rise as of the first quarter of 2023. In comparison to the US, Germany is expected to see a mild improvement in the downstream demand. Additionally, trading activities are also expected to improve. Also, the market players are likely to put their newer orders considering the higher demand side, supporting the price trend of Minoxidil API in both regions.