China’s Metformin HCL market witnessed a sharp decline in May as policy-driven procurement measures, expanding production capacity, and weak export demand weighed heavily on prices. The National Health Security Administration’s reference pricing reduced sellers’ pricing power, while new production lines in Jiangsu increased supply availability throughout the month. As a result, Metformin HCL (USP, FDA) FOB Shanghai prices went down 18.9% in May from last month. Domestic demand remained relatively stable, supported by contractual procurement programs and consistent consumption from hospitals and pharmaceutical formulators. However, export demand weakened significantly as buyers in key markets such as India and Brazil reduced spot purchases and delayed procurement activities. Rising inventories at coastal warehouses further intensified pressure on suppliers to clear stocks. Despite some late-month support from higher freight, insurance, and feedstock-related costs, market sentiment remained bearish. Looking ahead, analysts expect continued pressure in June, with modest recovery potential in July and August as international buyers return for restocking and discounted purchases.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
