Povidone Prices Rebound in the US Market Amidst Improved Demand

Povidone prices have gained upward momentum across the US market with the beginning of the third half of Q3 on account of improvement seen on the demand side and ease in logistic activity supporting the purchasers to buy their goods in bulk. However, the persistent, firm inflationary pressure and high-interest rates have affected the buying sentiments as Povidone offtakes from the consumer side have risen to modest levels in the end-user sector. Temporarily, demand for Povidone from the downstream pharmaceutical and personal care sector has shown moderate improvement across the regional market.

In the North American region, the price values for Povidone as September gets underway rebounded slightly, mainly based on domestic and overseas inquiries. It is anticipated that until the final weeks of September 2023, the rising use of Potassium will likely maintain its upward price trajectory. Moreover, as per the current data, feedstock prices have continued to rise over the past couple of weeks, resulting in the high production cost of Povidone within the exporting regions, primarily in the Asia Pacific. Furthermore, the rising energy cost has buttressed this future rise in upstream and downstream markets. However, market players reported that demand for Povidone from the downstream pharmaceutical industries has remained blurred as the inquiry from the domestic market is not enough concerning merchants' available stockpiles. The spot market transactions were also average, mainly based on the arrived request. Owing to this, the suppliers and domestic retailers were highly concentrated on clearing their warehouse inventories at a higher rate before the arrival of the new quarter.

Similarly, the imports reaching the US shores have been improved as the freight charges have declined in September from August 2023. Also, the weakening of the Chinese Yuan against the US dollar positively impacts importing regions. It makes imports cheaper, boosts demand for imported goods, and improves the competitiveness of exporters in importing regions. This has further encouraged the merchants to place newer orders at a lower rate. Supporting this, the market of feedstock used in the manufacturing of Povidone, i.e., 1-Butanediol, demonstrates a similar trend and is anticipated to increase throughout September and in the following months, as per the market experts' estimates. Povidone demand is expected to increase regionally, which is advantageous for suppliers and traders who can destock their inventory levels at a higher price to recoup their prior-month profits. As per market estimation by ChemAnalyst, the pricing outlook for September and upcoming months Povidone is likely to be reinforced by the steady increase in its feedstock sorbic acid consumption in the coming months.