Strong Demand With Wider Uncertainty in Supply Escalates Amoxicillin Trihydrate API Prices

In October 2022, Amoxicillin Trihydrate API prices showcased an upward price trajectory in Germany and China. The reason behind this price inclination is solid demand from pharmaceutical and healthcare industries and limited stocks of Amoxicillin Trihydrate API in the domestic market.

The prices of Amoxicillin Trihydrate API in Germany surged near about 2.4% in the mid of October due to limited inventories among domestic merchants. The leading cause of the Amoxicillin Trihydrate API shortage in the German market is reduced imports from foreign countries. However, China is a primary supplier of Amoxicillin Trihydrate API to Germany. Therefore, China entered the Golden Week Holiday in the first week of October and later lockdown imposition in some parts of the nation to curb covid cases, resulting in supply chain disruption. As a result, the demand for Amoxicillin Trihydrate API from end-users, such as pharmaceutical industries in the German market, has increased. Moreover, buyers seem interested in purchasing more of Amoxicillin Trihydrate API due to the surge in current orders from the domestic market, assisting the price trend in an upward direction. Thus, the CFR Hamburg prices of Amoxicillin Trihydrate API in Germany settled at USD 49950/MT.

At the same time, China’s economic outlook has dimmed further following its week-long holiday as COVID-19 cases were again rising. Some parts of the nation are currently in stringent lockdowns resulting in increased risks of further uncertainties in production, operations, logistics, and supply chain activities. Considering the situation, manufacturers have raised their prices of Amoxicillin Trihydrate API by 2.5%  in the Chinese market in order to maintain stability in their profit margin as demand remained consistent from the domestic and international markets. Thus, the FOB Shanghai prices of Amoxicillin Trihydrate API in China are assembled at USD 41220/MT.

According to ChemAnalyst, it is anticipated that Amoxicillin Trihydrate API will likely increase further in European and Asian markets in the upcoming month in the projection of escalating demand fundamentals from downstream industries and limited inventories among domestic merchants.