For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of Azithromycin in the North America region underwent significant fluctuations influenced by various factors. Overall, the pricing environment for Azithromycin remained positive, with prices experiencing continuous increases throughout the quarter. A key driver behind these market fluctuations was the heightened demand from downstream industries, particularly pharmaceuticals and healthcare, which exerted upward pressure on Azithromycin prices.
However, challenges such as the spring festival in China, supply constraints, and logistical hurdles posed hurdles for market participants. The tight supply conditions were further exacerbated by disruptions in key maritime routes, such as the Red Sea and Panama Canal, leading to delays in shipments and increased shipping costs. Additionally, the tightening of warehousing capacity further constrained supply and added to the overall upward pressure on prices. Despite these challenges, the market situation in the USA, where price fluctuations were most pronounced, remained relatively stable, with a bullish sentiment prevailing. This can be attributed to the robust performance of the US economy, marked by encouraging signs across various fronts, including business activity, consumer sentiment, and inflation.
Overall, the pricing environment for Azithromycin in Q1 2024 was characterized by positivity, albeit with fluctuations driven by changes in demand and supply dynamics. The quarter concluded with the price of Azithromycin Dihydrate (USP, FDA) CFR New York in the USA at USD 137805 per metric ton.
Asia Pacific
In Q1 2024, the pricing dynamics of Azithromycin in the APAC region, particularly in China, exhibited notable fluctuations and underlying factors that extended beyond the typical influences. While the overall trend indicated a price increase, it is important to consider the diverse analysis that contributed to this trajectory. Firstly, the surge in demand for Azithromycin in China during the quarter was driven by multiple factors. The seasonal transition from winter to spring heightened the need for antibiotics, including Azithromycin, leading to increased demand. Additionally, the availability of the drug was constrained due to the Spring Festival, which caused factory shutdowns and reduced production capacity, creating a shortage in the market. Even after the holiday period, supply remained insufficient as production took time to normalize. This supply-demand gap was further exacerbated by increased inquiries from major markets like the USA and Europe, as the supply chain eased. Moreover, concerns about the stability and effectiveness of existing Azithromycin supplies before the summer months prompted proactive purchasing behavior, driving up prices. The overall outlook remained positive, with steady demand from downstream industries and anticipated growth in demand from overseas markets. The final quarter's price for Azithromycin Dihydrate (USP, FDA) FOB Shanghai in China was presented as USD 135050/MT, indicating an upward trend in prices during the quarter.
Europe
During Q1 2024, the pricing dynamics of Azithromycin in Europe were influenced by a variety of factors. The surge in demand for Azithromycin was primarily driven by seasonal patterns and an increase in consumer confidence. This heightened demand, coupled with logistical challenges and disruptions in the supply chain, resulted in limited availability of the medication, fostering a bullish market sentiment overall. One of the key factors impacting Azithromycin prices was seasonal demand. Winter-related ailments led to an increased need for antibiotics, including Azithromycin. Additionally, the onset of the Chinese New Year festivities in mid-February prompted many Chinese suppliers to adjust their prices ahead of the market slowdown during the holiday period. Simultaneously, prolonged disruptions in the Red Sea further complicated trade routes between Asia and Europe, resulting in increased freight costs that influenced the pricing landscape of Azithromycin in Germany. Furthermore, the moderation of inflation in Germany led to heightened spending by businesses and consumers, contributing to further price hikes. In conclusion, the final price for Azithromycin Dihydrate (USP, FDA) CFR Hamburg in Germany at the end of Q1 2024 was USD 137250 per metric ton.
For the Quarter Ending December 2023
North America
The North American Azithromycin market encountered challenges during the fourth quarter of 2023, with various factors influencing pricing dynamics. Inflation, interest rates, and geopolitical tensions played pivotal roles in shaping the market conditions. These elements collectively contributed to a bearish sentiment in the market, resulting in a decline in prices when compared to the corresponding quarter of the previous year.
The United States Azithromycin market witnessed notable fluctuations in pricing, with significant changes occurring in October. During this month, Azithromycin prices in the U.S. notably decreased, in line with subdued domestic demand and abundant inventories held by market merchants. The overall growth in new orders was minimal, and the decline in new international sales continued, albeit with a slight deepening. The robustness of the dollar against foreign currencies facilitated more affordable imports, ensuring a plentiful supply in the U.S. domestic market and contributing to a further reduction in Azithromycin prices. However, in November, as signs of inflation easing emerged, consumers exhibited a greater inclination to increase their spending, resulting in an uptick in Azithromycin prices. Nevertheless, in December, prices once again experienced a decline due to diminished demand, with market participants focusing on destocking old inventories.
The price percentage comparison of the first and second half of the quarter showed a decrease of 4%, indicating a downward trend in prices during the latter part of the quarter. Overall, the quarter ending price of Azithromycin Dihydrate (USP, FDA) CFR New York in the USA was USD 122755/MT, representing the latest price of the selected country in the current quarter.
APAC
In the fourth quarter of 2023, the Azithromycin market in the APAC region underwent notable changes in prices and market dynamics, influenced by several significant factors. Initially, in October, the prices of Azithromycin experienced a significant slowdown in China. This downturn was attributed to diminishing demand from end-sectors and an abundance of supply in the domestic market. The contraction in China's manufacturing sector during the month, prompted by an eight-day break in early October, indicated weakened domestic demand, leading to a decline in Azithromycin prices. However, market sentiment improved in November, marked by expanded supply and demand, enhanced logistics, increased purchasing quantities, and growing optimism among manufacturers. A rise in new orders from the domestic market, driven by increased inquiries from downstream industries, especially the healthcare sector during the winter season, contributed to an upward trend in Azithromycin prices. Nevertheless, the pricing of Azithromycin in the Chinese market experienced a significant reduction in December. This decline was influenced by a decrease in new order inquiries both domestically and internationally. The dip in domestic demand was linked to the prevalent issue of antibiotic resistance, particularly concerning the excessive use of Azithromycin. This resistance has led to reduced effectiveness, prompting consumers to seek alternative medications and contributing to the overall decline in demand for Azithromycin. The current quarter's price of Azithromycin Dihydrate (USP, FDA) FOB Shanghai in China is USD 120000/MT.
Europe
In the last quarter of 2023, Azithromycin pricing in the European region was subject to various influencing factors. To begin with, Germany witnessed a decrease in Azithromycin prices in October, attributed to a combination of factors including subdued consumer sentiments, elevated interest rates, and abundant market supply. The sharp decline in European consumer inflation during October, driven by lower fuel prices and swift interest rate hikes that curtailed business expenses and market demand, played a significant role in the reduction of Azithromycin prices. Moving into November, Azithromycin prices showed improvement due to a moderate increase in demand from the pharmaceutical and healthcare sectors, heightened consumer spending, and a reduction in market inventories. Additionally, the decrease in China's exports to the European Union in November contributed to reduced inventories in the German market, further supporting the upward trajectory of Azithromycin prices. However, come December, Azithromycin prices experienced another decline, primarily influenced by reduced demand from both the pharmaceutical and healthcare sectors. The resurgence of inflation, coupled with sustained elevated interest rates, prompted companies and consumers alike to scale back on investments and spending. This collective reduction in demand for Azithromycin in the German market led to a decline in prices during December. The quarter ending price for Azithromycin Dihydrate (USP, FDA) CFR Hamburg in Germany was USD 122200/MT.
For the Quarter Ending September 2023
North America
Azithromycin prices showcased an inclining trend throughout the third quarter in the USA. The prices increased by 11.55 percent in September compared to the levels observed in July. Consumer confidence in the United States reached a two-year high in July amid a consistently tight labor market and receding inflation. The Consumer Price Index slightly grew 3.2% year on year through July, up from 3% in June. Prices continued to increase in August, with a significant rise in the cost of gasoline and fuel oil in comparison to July, by 9.1% and 10.6%, respectively, resulting in increased business expenses and shipping costs. Moreover, factors such as higher warehousing prices, scarcity of storage space, and the restocking of inventory further contributed to this upward trend. In September, prices increased further due to heightened inflation, sluggish trading activities, and sustained demand from end-user sectors. The Consumer Price Index climbed 3.7% in the year ended September, slightly more than the 3.6% expected. Energy prices increased 1.5%, with gasoline prices up 2.1% and fuel oil prices increasing 8.5%. Furthermore, imports from China remained sluggish, which further kept Azithromycin prices higher.
Asia Pacific
Azithromycin prices showcased an inclining trend throughout the third quarter in China. The prices increased by 12.07 percent in September compared to the levels observed in July. According to the National Bureau of Statistics, China reported a 0.3% drop in consumer prices in July from a year ago and a 4.4% year-on-year drop in producer prices in July. This ease of inflation increased consumers' confidence, leading to higher prices of Azithromycin. In August, supply remains constricted because of limited manufacturing activity, resulting in fewer inventories among market manufacturers and traders. On the bright side, the rate of new orders increased from the previous month, resulting in an increase in azithromycin cost. Factory owners reported that producer prices had improved for the first time in seven months, and new orders had resumed growth for the first time in five months. Moreover, China's manufacturing purchasing managers' index (PMI) gracefully surged back into the expansive realm in September, illuminating the resumption of factory activity and heralding a promising economic resurgence within the nation. On the demand side, there was a continuous surge in new orders, implying a consistent growth in the demand for the manufacturing market.
Europe
Azithromycin prices demonstrated an upward trend during the third quarter in Germany. The prices increased by 12.00 percent in September compared to the levels observed in July. In Germany, the inflation rate was 6.2 percent in July, compared to 6.4 percent in June, as measured by the year-on-year (YoY) change in the consumer price index (CPI). The reading indicated ease of inflation in July, keeping consumers' sentiments on the higher side. Prices continued to rise in August due to elevated inflation, driven by a rise in energy and oil prices, which increased the cost of businesses maintaining APIs (Active Pharmaceutical Ingredients). Azithromycin further increased in September due to scarcity of available stock, elevated energy prices, and weakened demand from end-consumers. In addition, the expense of air and ocean transportation experienced a significant surge toward the conclusion of September in light of the forthcoming extensive holiday in China. This has also affected the global supply chain and led to a surge in the Azithromycin prices in Germany.
For the Quarter Ending June 2023
North America
The prices of Azithromycin witnessed an upward trend in North America during the second quarter of 2023. An increment of 7.73% is seen in June compared to the levels noted in April due to an increase in demand for Azithromycin from the downstream sector and a rise in imports from China. The Manufacturing Purchasing Managers’ (PMI) Index in the US fell to 46.3 in June from the beginning of the second quarter. This indicates a contraction of production growth, leading to a high supply of Azithromycin coupled with more demand from the pharmaceuticals and nutraceuticals sectors. Apart from this, replenishment of product inventories with fresh stock in the mid of the quarter Q2 2023 has kept the market sentiments north side. Also, the decrease in inflation and energy prices has increased the consumers’ confidence leading to a gradual rise in Azithromycin prices in the second quarter. Imports prices increased in the US, demonstrating more quantity of imports of Azithromycin API from China balanced with more demand from end consumers, keeping the price on the higher side.
Asia Pacific
The price of Azithromycin rose significantly by 9.45 percent in June compared to levels observed in April. The factors responsible for this upward trend include high demand from the downstream sector amid antibiotic resistance bacteria. The CPI (Consumer Price Index) increased in May, indicating a rise in inflation in the mid of Q2 2023 that led to an increase in the prices of raw materials required in making the Azithromycin API. Apart from that, a rise in energy and oil prices has a significant role in the surging of Azithromycin prices in the domestic market as well as in foreign markets due to increased costs for businesses that rely on APIs. PMI (Purchasing Managers’ Index) of China was 49.5 in April, which increased to 50.9 in May, indicating the expansion of China’s industrial activity, along with more demand, led to a rise in the Azithromycin prices. Also, despite the ease of COVID protocols, the supply chain remains disrupted, increasing the overall transportation cost and increasing prices.
Europe
Azithromycin prices in Europe demonstrated an upward trend due to persistent demand from the downstream sector and imports from exporting countries such as China. Inflation in Germany has increased to 6.4 percent in June from May, leading to the high cost of developing and maintaining APIs. Demand for Azithromycin also increased in domestic and foreign markets, which put upward pressure on Azithromycin prices. Also, the war in Ukraine caused high energy prices in Germany that led to a rise in Azithromycin prices as the cost of production of APIs increased. The Manufacturing Purchasing Manager Index (PMI) of Germany fell to 41 in June 2023, contrasted with levels noted at the start of the second quarter. This demonstrates the contraction of production growth coupled with higher demand from the end-user sector, leading to a rise in Azithromycin prices in the market. Also, prices of Azithromycin API remained high in China in the second quarter, which made the API expensive to import in Germany.
For the Quarter Ending March 2023
North America
Azithromycin displayed stable market dynamics throughout the first quarter of 2023. With the start of Q1 2023, prices were recorded to increase stably, supported by sustained purchases from the pharmaceutical end-user industry and merchant stocks to meet demand. Also, the ease of trade disruption supported the Azithromycin market trend. With an average quarterly inclination of 0.40%, the settlement price of Azithromycin API was recorded at USD 103750/MT CFR Houston. Enough inventories among the merchants and the domestic suppliers kept the market situation firm. With stable production costs and ease in demand, trading activities were also feeble, keeping the market Weak.
Asia
Azithromycin prices witnessed a positive trajectory in the APAC region in the first quarter of 2023. At the commencement of Q1 2023, the prices recorded to drop backed by sufficient inventories and a stable demand outlook. Later with the onset of February, After the Lunar New Year break, the Chinese pharmaceutical markets technically returned on a positive note with an increase in orders and shipments from both the domestic and the international market. As the market was reopened, factory and port operations resumed. Also, with the soaring offtake and increase in the no. of international orders, Azithromycin prices increased in the Chinese market. At the termination of Q1 202, the settlement price of Azithromycin API was accessed at USD 101340/MT FOB Shanghai with an average quarterly inclination of 1.33%.
Europe
The first quarter of 2023 saw stable market dynamics for Azithromycin. Prices started to rise steadily at the beginning of Q1 2023, helped by ongoing purchases from the pharmaceutical end-user business and merchant stockpiles to fulfill demand. The settlement price for azithromycin API was recorded at USD 105560/MT CFR Houston, with an average quarterly inclination of 0.54%. The market position remained stable thanks to sufficient stockpiles held by retailers and domestic suppliers. The market remained weak due to stable manufacturing costs, easy demand, and weak trade activity. Also, the reduced energy prices further lower doe the production cost keeping the market weak.
For the Quarter Ending December 2022
North America
The North American market for Azithromycin initiated the Q4 of 2022 on an upward note, with prices settled at USD 103700 per MT in October. However, these prices started plunging slowly in November and fell even further to USD 102500 per MT in December. The Golden week vacation in the first week of October and repeated lockdowns in China, from which most APIs are imported, significantly reduced imports into the US. As a result, domestic retailers had to raise their prices, considering the low inventories in the market. Consequently, improvement in import frequencies from China led to adequate stock in the market, causing the value to be slightly lower. Also, demand from the downstream pharmaceutical sector in the US reduced in November ahead of the Christmas Holiday. All these factors had a prominent effect on the mixed price trend of Azithromycin in the US domestic market.
Asia- Pacific
Azithromycin prices showcased a see-saw trend in the Asia Pacific region throughout the fourth Quarter of 2022. Some industries were shutdowns due to a long week holiday in the first week of October and later stringent lockdowns resulting in increased risks of further uncertainties in production, operations, logistics, and supply chain activities. Considering the situation, Chinese manufacturers raised their prices of Azithromycin to USD 99000/MT in October to maintain stability in their profit margin. In contrast, prices started declining from the onset of November as demand from the downstream pharmaceutical industries was stable to weak amid the slowdown in China's economy. Towards the end of Q4, prices dropped to USD 97400/MT, supported by sufficient regional stockpiles as production activities resumed.
Europe
Prices for Azithromycin remained high in Europe with the onset of the fourth quarter of 2022 due to limited inventories and constantly increased demand from end-user industries such as pharmaceutical and healthcare sectors. Inadequate imports from major exporting countries, mainly China, were seen due to the Golden Week holiday and lockdown restrictions. Also, the conflict between Russia and Ukraine caused disruption in the supply chain and increased freight costs. However, prices began to drop from November to late December due to the poor offtakes and the underwhelming downstream demand. Additionally, the suppliers had an adequate supply on hand to cover the entire domestic demand. As a ripple effect, Azithromycin CFR Hamburg prices declined from USD 105040/MT to USD 103860/MT from October to December 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the price trend for Azithromycin API in the North American region followed a downward path. The weak demand from the downstream pharmaceutical sector and sufficient stocks among the domestic merchants further affected the prices of Azithromycin API. The Azithromycin API market saw volatility during the third quarter because of the interrupted supply chain from China. Towards the closure of the quarter, Azithromycin API prices were estimated at USD 100800/MT for CFR New York, with a quarterly tendency of 6.6%. Overall, these variables significantly influenced the declining price trend along with the declining demand throughout the quarter.
Asia- Pacific
Entering Q3 2022, the market of Azithromycin API encountered the Asia Pacific market with a downward price trajectory until the first half of September. This decline in China results from weak market sentiments, decreased demand from downstream pharmaceutical industries, and slow offtakes from the domestic market. However, the manufacturers had enough inventory of Azithromycin API in hand to cater to the orders made for immediate use. Moreover, trading activities from China to the international market remained disturbed from July due to numerous factors, such as lockdown restrictions and the shutdown of factories for maintenance, which impacted the Azithromycin API price trend. Therefore, by the end of Q3, slight improvements were seen in Azithromycin demand dynamics, due to which mainstream factories raised the prices from USD 97000/MT to USD 99000/MT FOB Shanghai.
Europe
In Europe, the Azithromycin API witnessed a similar price trend to the Asia-Pacific region during the Q3 of FY2022. However, Azithromycin API prices declined by 3.94% until August, backed by abundant availability and unstable demand from the downstream sectors. Moreover, Europe's already challenging economic situation was made even more difficult by the unrest in Russia and Ukraine and the lockdown and port restrictions in China, a major supplier. With a slight recovery in demand and purchasing activities from end-user pharmaceutical industries in October, the prices of Azithromycin API in Germany were shifted from USD 102850/MT to USD 105040/MT with an inclination of 2.13%.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the prices of Azithromycin API in the North American region continued to follow a downward trend due to declining demand from the downstream pharmaceutical sector. Adequate inventories in the domestic market have substantially pressurized Azithromycin API's market sentiments to be on the lower side. Additionally, the zero covid policy in China amid the resurgence of COVID cases has abrupted the global supply chain and negatively impacted the price trends of Azithromycin API in the United States. The CFR prices for Azithromycin API were assessed at USD 124500/MT in the United States at the end of the quarter.
Asia- Pacific
The Asia Pacific region has had conflicting market attitudes toward Azithromycin API during the second quarter of 2022. Due to the weak demand and sufficient inventories in the downstream pharmaceutical industries, Azithromycin API prices declined in China in April. Besides, the ongoing Covid shutdown in some cities of China has impacted the market sentiments of Azithromycin API. However, Azithromycin API prices decreased since the middle of the quarter because of a backlog of deliveries piling up, and the manufacturers provoked to reduce their quotations. The pricing of Azithromycin API has also benefited from low purchasing and selling activity across the regional market. Thus, by the quarter ending June, prices of Azithromycin API were assessed at USD 120000/MT in China.
Europe
During the second quarter of 2022, Azithromycin API has witnessed downward trend in Europe. In April, Azithromycin API prices in the European market declined due to continuous importing activities from China amidst lockdown restrictions, causing sufficient inventories in the regional market of Europe. However, Azithromycin API prices declined in May by 5.42%, backed by received quotations from China and ample availability coupled with fragile demand from the downstream sectors. Prices of Azithromycin API in Germany were settled at USD 131300/MT with growing demand and favorable buying sentiments in the downstream pharmaceutical sectors.
