Global Neomycin Sulphate Prices Plummet Amidst Weak Demand and High Inventories

The prices of Neomycin Sulphate significantly declined in the global market due to the presence of high inventories. Demand also remained weakened from the consumer side, further supporting this downward trend.

Neomycin Sulphate is an antibiotic that belongs to the class of aminoglycoside antibiotics. This antibiotic is commonly used to minimize the risk of infection during intestine surgery. It also treats skin infections and certain brain conditions, such as hepatic encephalopathy. However, this antibiotic is ineffective against some bacteria like Pseudomonas aeruginosa compared to other aminoglycoside antibiotics such as gentamicin. Also, there is a risk of side effects because of using Neomycin Sulphate, such as vomiting, nausea, or diarrhoea. These factors made it less popular than other antibiotics, keeping the purchases on the lower side.

In China, the official manufacturing PMI (Purchasing Managers Index) came in at 49.3 in July, slightly improved from 49.0 in June, according to the National Bureau of Statistics. However, the PMI reading remained below the 50-mark, indicating a factory activity contraction for the fourth consecutive time in July as China’s economy struggled to regain the growth momentum. The manufacturing activity has been hampered amid lower overseas orders and insufficient domestic demand, which put downward pressure on Neomycin Sulphate prices. Neomycin Sulphate prices decreased in other countries, Amid further decrease in demand from foreign importing nations.

A similar downward trend of Neomycin Sulphate prices is seen in the US and European markets. This price trend was supported by continuous weaker end-user demand, higher inventories among the merchants, and weaker imports from exporting countries like China. Moreover, demand for Chinese exports declined in response to the rise of US and European interest rates to combat inflation, keeping prices on the lower side.

India is mainly dependent on China for the Key Starting Materials (KSM), which are the building blocks of Active Pharmaceutical Ingredients (API). So, the Indian government has introduced the Production Linked Incentives (PLI) program to encourage domestic production of APIs and reduce dependence on imports from China. All these factors created a competitive environment in the Indian pharmaceutical sector, forcing companies to lower prices for active pharmaceutical ingredients, including Neomycin Sulphate.

Neomycin Sulphate prices are expected to rise in the coming months due to increased demand from the healthcare and pharmaceutical industries, according to an analysis by ChemAnalyst. In addition, an improvement in trading activity is expected, which could further increase the price of Neomycin Sulphate in the global market.