Oversupply and Sluggish Demand Drag Down the Global Oxytetracycline Hydrochloride Prices

Bullish market sentiment has started to develop in Global Oxytetracycline Hydrochloride from early December. As trading activities slowed down ahead of the year-end holidays, producers and traders rushed to clear their existing inventories. Also, suppliers remained reluctant to buy the product in bulk. This month, the price of Oxytetracycline Hydrochloride moved downward as the supply was sufficient, and the demand performance from the end-user producer was mainly flat.

In China, Oxytetracycline Hydrochloride prices have shown a downtrend since early December amid weak market fundamentals. However, China’s zero-COVID-19 strategy has eased, but concerns remain the same amid global economic headwinds. Despite run rate cuts, overall supply levels are sufficient to fulfill the product requirement of the end-user market. Suppliers said that the demand for Oxytetracycline Hydrochloride from end-user producers has been slowing down with oversupplies and hit market dynamics coupled with uncertainty in regional economic growth. Purchasing activity remains limited as buyers purchase the products according to their requirements and hope to see additional price drops.

Similarly, Oxytetracycline Hydrochloride prices declined in the USA and Germany due to adequate inventories and subdued demand. Traders interest waned as they viewed a slowdown into the year-end and faced a lack of need for new supply. Also, exports from Asian countries such as China and India significantly decreased to North American and European countries such as USA and Germany, and suppliers remained hesitant to increase prices. However, feeble market trading and lower product bidding slumped the prices of Oxytetracycline Hydrochloride.

According to ChemAnalyst, the price of Oxytetracycline Hydrochloride in the global market will decline in the coming months. Producers are likely to face narrow profit margins. Though demand for most Active Pharmaceutical Ingredients (APIs) is not improving significantly in the short term, and that large-scale recovery may only begin in the second quarter of 2023.