For the Quarter Ending March 2024
North America:
The pricing dynamics of Povidone in the North American region during Q1 2024 were influenced by a range of factors beyond the conventional top three influences. With the overall trend in pricing which remained decreasing, it is important to consider the market situation in the USA considering Povidone witnessed some price fluctuations and stabilization.
The market experienced a gradual downward trajectory throughout the quarter, primarily driven by a modest rebound in downstream consumption from the pharmaceutical and cosmetic sectors in the middle of the quarter. This, coupled with the imposition of global logistical challenges, such as trade disruptions preceding Chinese festival holidays, contributed to the overall price increase. Additionally, the surge in raw material prices, particularly the notable increase in 1, Butanediol prices, exerted a substantial influence on Povidone production in exporting countries, further impacting pricing.
Moreover, moving forward towards the end of the quarter the prices dropped considerably and witnessed a subdued trading environment. The market experienced high inventory levels due to subdued demand in the region, prompting industry participants to destock through discounted pricing strategies. This aimed to stimulate demand and make room for upcoming replenishments. Additionally, a notable reduction in freight charges, approximately 14 percent from China, has improved the trading landscape. This decrease, along with a significant resumption of shipments following disruptions, has revitalized the supply chain and enhanced the cost-effectiveness of importing and distributing Povidone, further increasing supply availability.
APAC:
During Q1 2024, the pricing dynamics of Povidone in the APAC region demonstrated a complex pattern influenced by various factors beyond conventional influences. The overall trend in the quarter saw a decline in prices, driven primarily by weak demand and surplus inventory levels. Overall, the decline in prices was attributed to weak foreign demand, prompting significant price cuts from Povidone suppliers. The decrease in prices in the 1-butanediol market, a key raw material for Povidone, contributed to the overall price decline. However, prices experienced a steady rise in the middle of the quarter, driven by a slight increase in inquiries for Povidone from end-users, which were accommodated by ample inventory levels. Internationally, heightened inquiries were spurred by the depreciation of the Chinese currency (CNY) against the USD, bolstering the market's resilience and pushing prices upwards. Yet, as importing nations placed bulk orders post Lunar New Year and market reopening, suppliers strategically raised prices to maximize profit margins, resulting in increased costs for buyers. Towards the end of the quarter, prices once again dropped, signaling an overall pessimistic trend throughout the quarter. In March, this price decline was spurred by the normalization of freight charges, previously inflated due to geopolitical issues. With these concerns easing, freight charges returned to normal levels, alleviating cost pressures and further driving down prices. Additionally, the reopening of the market unveiled an oversupply of Povidone compared to demand forecasts. In response, suppliers strategically offered discounts to clear surplus inventory, stimulate demand, and achieve end-of-Q1 destocking objectives, thus avoiding increased storage costs.
Europe:
In Q1 2024, the Povidone market in Europe witnessed an overall trajectory in its prices leaning on the southerly side, driven by a combination of factors. As a key importer of Povidone, Germany strategically adjusted its pricing approach, aiming to sustain competitiveness on the global stage. This strategic manoeuvre by Germany wielded considerable influence over the global Povidone market, initiating a cascading effect that resulted in a diminished price trajectory. The market situation regarding povidone demonstrated a delicate balance between the supply-demand side with more than sufficient inventories among the trades meeting the overall arrived demand side coupled with declining inflation rates, economic slowdowns, and geopolitical tensions. Additionally, the Exports from northern Germany in February were the highest in the past 12 months. Shipowners said stocks are high at almost all tank farms from the Lower Rhine to the Upper Rhine, meaning there is no spare capacity for fresh imports, as a result, merchants within the region continued to focus on clearing their consignments. Economic sentiment fell to 89.0 in February from January’s 89.6. As a result, the index remained entrenched below the long-term average of 100, pointing to a downbeat near-term outlook for the economy. Lastly, as the Euro continued to remain weak relative to the US dollar, the costs of imported goods from major exporting countries experienced a proportional increase. This has placed additional pressure on German traders and buyers, resulting in a discernible decrease in import activities and weakening purchasing sentiments, thereby keeping the overall market outlook for Povidone on the southerly side as March concludes.
For the Quarter Ending December 2023
North America
The pricing trajectory for Povidone across the North American region, particularly in the USA started the fourth quarter at a cheerful note while plummeted considerably as December concludes. As of October 2023 commenced, the steady rise in the prices was spurred by heightened global demand for Povidone and increased inquiries from the pharmaceutical and cosmetic sectors, driven by the winter season and the growing emphasis on personal well-being and appearance.
Anticipating the surge in Povidone prices and recognizing the importance of maintaining sufficient inventory, market participants placed significant bulk orders in September. The stability in inventory levels maintained by local manufacturers and retailers supported this favourable price trend, ensuring an adequate supply to meet the growing demand throughout the month. Adding up to this, disruptions in shipping, including delays and port congestion, influenced by factors such as geopolitical tensions and Panama’s drought continues to worsen the trade activity throughout November 2023, hindered the smooth flow of Povidone trade, leading to limited availability and further price escalation.
In contrast, as we approach the end of Q4, there has been a significant plunge in Povidone prices in the North American region. This notable downward trend in Povidone prices can be attributed to a combination of factors, with a prominent factor being the dwindling influx of new orders observed from the regional market. In response to the weakened global demand scenario, key Chinese provinces, being significant exporters to the USA, opted to adjust their export prices downward, thereby influencing the broader dynamics of the market. This adjustment not only had implications for the pricing structure but also underscored the challenges faced by suppliers in effectively managing their inventories. Adding complexity to this intricate interplay of factors, the Povidone market in the United States experienced a reduction in prices due to the accumulation of surplus inventory among suppliers, stemming from consistently higher imports witnessed in the preceding months. To further contribute to the multifaceted nature of these market dynamics, the weaker price trend of 1-Butanediol emerged as another contributing factor, contributing to the overall decline in Povidone prices during December 2023.
APAC
Throughout the entire fourth quarter of 2023, the pricing of Povidone in the APAC region experienced fluctuations, with merchants observing a sliding trend within the Asia Pacific region. Entering the month of October, an unbroken surge in demand from end-users in the pharmaceutical and personal care sectors maintained elevated prices for Povidone. This increase was further amplified by the conclusion of the Golden Week holidays, sparking heightened interest among downstream customers, coupled with a modest uptick in incoming overseas inquiries.
The advent of winter in overseas regions subsequently added to the already heightened interest among downstream customers, contributing to a further escalation in Povidone prices. This market trend persisted into November, supported by the limited availability of inventories held by suppliers and traders, considering the market conditions of the previous month. However, a noteworthy shift occurred in the feedstock market as the prices of 1-butanediol experienced a significant decline, resulting in a wider spread chart.
As December unfolded, a substantial decrease in the cost of Povidone was observed, closely linked to the decline in the prices of 1-butanediol. Also, many pharmaceutical companies scaled back their production and distribution activities during the holiday season, driven by weakened downstream demand, inventory adjustments, and employee vacations, the traders and suppliers tends to reduce their overall selling cost for downstream products including the povidone. This temporary dip in demand for Povidone, a crucial excipient in various drug formulations, was also witnessed in sectors heavily reliant on the substance, such as personal care products and cosmetics. However, suppliers demonstrated prudent management of substantial inventory levels, ensuring they could meet comprehensive inquiries within the region. This strategic approach helped maintain stability and meet the demands of the market, showcasing the adaptability of suppliers in navigating the dynamic landscape of the Povidone market.
Europe
The fourth quarter of 2023 was characterized witnessing a ominous market outlook for Povidone across the European region with demand being on the upper side until the mid Q4 and tumble significantly as December concludes. Several factors contributed to this price trend, firstly as October commenced increased demand from downstream industries and arrival of winter months typically see a rise in demand for Povidone-containing products due to their effectiveness against bacteria and fungi.
Additionally, the relative strengthening of the Euro against certain currencies, particularly the US dollar, made imports cheaper for some countries, impacting the price of Povidone in their domestic markets. Supporting to this, the rising cost of upstream Butanediol also supported the overall market trend for Povidone in Europe. This trend continued until the middle of the fourth quarter.
As we approach the conclusion of Q4 in December, a noteworthy decline in Povidone prices within the German market has captured the interest of industry participants and analysts. This unexpected decrease deviates from earlier projections, marking a weakened trend. The shift in pricing dynamics has significant implications for both market experts and traders who had strategically accumulated stocks in anticipation of an expected surge in demand from their respective end-user sectors in the preceding month. However, as December unfolds, the market has taken an unforeseen turn, compelling merchants to adjust their inventory levels in response to the evolving landscape. Additionally, It was noteworthy that Germany experienced a technical recession in the current month, as indicated by the Purchasing Managers' Index (PMI) for both the manufacturing and services sectors, which remained below 50 in December.
For the Quarter Ending September 2023
North America
Following the market trend of the previous month, the prices of Povidone went down consistently across the US market at the beginning of the third quarter and continued to drop throughout August 2023. This significant drop in the prices was because there hadn't been a particularly noticeable increase in regional order over the previous month. The nation's Povidone industry has suffered constantly from low Povidone requests from the end-user pharmaceutical and preservatives industries. Further adding up to this, the Upstream 1-butanediol cost had accumulated more due to decreased regional purchasing activity and global supply chain disruptions and displayed a consistent downward trend until the middle of the third quarter in the United States, which further contributed to the current market situation of Povidone. This dominant trend, however, was fuelled by the market's well-balanced supply and demand for the product, which was successfully met by an abundance of Povidone supply. As September commenced, the prices rose at a moderate level, balancing the overall arrived demand side within the region. With this, the prices of Povidone in the US market were assembled at USD 8695/MT.
Asia Pacific
Across the Asia Pacific region, primarily in China, the values of Povidone showcased a pessimistic market outlook as Q3 concludes. During the beginning of July and until August, they continued to plummet at the same rate as it was in the prior month. Higher feedstock suppliers were selling feedstock 1-Butanediol at a lower price on the spot market, which was one of the factors that continued to keep the price trajectory for Povidone in the southerly direction. Throughout China, CPI fell in the following month as well, resulting in weakened consumer purchasing activity. This was additionally supported by a consistent drop in demand for Povidone from the downstream food and pharma industries amid uncertain economic conditions as q3 commenced. Still, the overall market remained unstable in terms of global supply because most of the incoming inquiries were successfully satisfied by the merchants' existing inventories. At the same time, the prices stabilized at a very modest level as September commenced. This moderate rise in prices was on the back of a steady uptick in downstream industry demand balanced by the overall availability of stockpiles among the merchants. With this, the prices of Povidone across China were assembled at USD 8290/MT.
Europe
European region mimicked a similar trajectory in Povidone prices within the German market as of APAC region as Q3 commenced. Following the market trend of prior months, the local retailers' abundance of stocks along with a persistent decreasing upstream 1-butanediol costs, contributed to the depressing market environment for Povidone Supplies until mid-Q3. Moreover, in continuation to this, in the entire month of August, traders were reluctant to place newer quotations due to supply chain disruptions and a decline in the value of the euro in relation to the Chinese yuan. Besides this, the merchants anticipate limited restocking in the forthcoming market trend as the suppliers would possess enough to satisfy the total number of inquiries received, which will exacerbate the situation further. However, as September approached, the prices rose slightly, resulting in its improved demand side, which was successfully balanced by the overall availability of inventories among the merchants. With this, the prices for Povidone Excipients in the German market were assessed at USD 8515/MT in Germany.
For the Quarter Ending June 2023
North America
Across the North American region, the costs of Povidone portray a plunging pricing trend as that of the APAC region. Although, throughout the second quarter, costs of Povidone demonstrate a stable trend with an average increment of 0.66% across the North American region. However, at the beginning of the second quarter, the prices surged drastically, owing to its increase in uptake from downstream pharmaceutical and healthcare sectors. Additionally, the suppliers slightly increased domestic prices because of an increase in production costs in exporting countries, which improved the market activity. Moreover, moving toward May, the prices started to drop significantly, which was further reinforced by winning upstream (1-butanediol) costs. Nonetheless, in June, Povidone cost across the district was $10605 / MT CFR Houston. The destocking of existing inventory due to seasonal changes, as some parts experienced dry weather while other parts experienced heavy rains during June, also contributed to the decrease in Povidone price for this month. Given that the consumer price index in North America, mainly in the U.S., increased by 0.1 percent in June in 2023 compared to May, domestic providers of Povidone have enough inventory to meet nearby demand for Povidone for the second half of 2023.
Asia Pacific
The costs of Povidone throughout the APAC region demonstrate a diminishing market sentiment., Although, at the start of the second quarter, the prices augmented across the Chinese market. April's upward trend was largely driven by the increase in demand from end-use industries, including pharmaceuticals. Also, increased production rates in order to refill the inventories with fresh stock and to cater to the overall surging inquiries from the international market, the market situation remained strong. Also, In April, Chinese exports performed better than expected as domestic and international inquiries remained above average, while ocean freight rates remained low. On the North Side, the market trend of all commodities was maintained as China purchased Russian oil at higher-than-expected prices, which affected the manufacturing activity, according to traders. Furthermore, moving toward May, the prices for Povidone started to drop considerably and continued to mimic a similar trend throughout June. This price trend was supported by decreasing upstream 1-Butanediol production costs in the domestic market and fragile inquiries. However, the inventory level for both downstream Povidone and upstream 1-butanediol was more than enough to balance the overall domestic and international inquiries. With this, the prices for Povidone at the end of the second quarter were settled at USD 9950/MT FOB Shanghai in China.
Europe
Povidone prices within the German market followed a market trend of the APAC region during the whole Second quarter of 2023. With the start of Q2, the prices surged drastically across the region resulting in higher purchasing activity, resulting in higher order placement by the traders. Furthermore, with the commencement of May, a declining trend throughout the second quarter of 2023 was witnessed. The local retailers' abundance of stocks along with declining upstream 1-butanediol costs, contributed to the depressing market environment until the final weeks of June. Moreover, As Germany is particularly struggling with June's heatwave, market participants have cut back on previous inventories due to lower inquiries and fears that tepid temperatures will degrade goods and result in significant profit losses. Because of this, they continued to focus on cleaning up and withdrawing recent listings throughout the end of Q2-2023. However, the buyers were also reluctant to place large orders due to the onset of seasonal changes. With this, the prices for Povidone Excipients in the German market were assessed at USD 10185 /MT CFR Hamburg.
For the Quarter Ending March 2023
North America
The market for Povidone saw an improved market environment in the North American region, with slight fluctuations during the first quarter of 2023. According to market fundamentals, prices were projected to be on the higher end because of strong domestic demand. The fact that domestic merchants had enough inventory amongst them compared to the previous quarter also affected the market environment up to February. Povidone values were accessible at USD 10560/MT at the conclusion of the first quarter, showing a declining tendency. However, consumer demand indicators also demonstrated a worse trend after the decline in inquiries, which caused the impetus for imports to slow down in March.
APAC
A reduction in consumer demand from the downstream food, pharmaceutical, and nutraceutical industries causes Povidone market prices to remain on the upper side in the initial month of the first quarter of 2023. Also, the market technically resumed on a bullish note with a boost in orders from domestic and international buyers after the Lunar New Year vacation, supporting the positive demand outlook until the end of February. Moreover, the prices started to decline at a moderate level in the month of March, balancing the overall demand and supply activities. Overall, the prices for Povidone were accessed at USD 10250/MT in China at the termination of Q1 2023.
Europe
The Povidone market in the European area experienced a decline in its prices during the first quarter of 2023. However, Prices inclined in early January and continued until February 2023, which was supported by higher orders from end-user industries, keeping demand strong and continual stock consumption. Also, the government recently established a rule requiring suppliers to keep six weeks' worth of inventory to minimize shortages leaving the market players ordering bulk inventories and eventually influencing the prices in the mid of the first quarter. As March concluded, the Povidone prices started to decrease owing to weak local demand, according to market fundamentals. The market scenario was adversely affected by the large amount of inventory that domestic retailers retained among themselves. At the conclusion of the first quarter, Povidone values were discovered to be USD 10520/MT in Germany.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Povidone market in North America experienced fluctuating trend. Prices began to climb in Q4 2022 and continued to do so throughout the first month of the fourth quarter due to high manufacturing costs, numerous logistical issues, and rising inflation. The US inflation Soar to 8.2% in the month of October 2022. Additionally contributing to the price fluctuation were rising transportation costs and port congestion at the major ports. However, Prices begin to decline later in the month of November till the termination of Q4 2022 as a result of weaker inflation (the US inflation rate was 7%, down from 8.2% in October) and decreased end-user sector demand as the holiday season approaches. In December, the Povidone settlement price fell to USD 10380/MT CFR Houston.
Asia
The Asia Pacific Povidone market saw a turbulent fourth quarter in 2022. It was witnessed that the prices rose considerably till the second month of the quarter due to increased end-user sector demand, several logistical challenges, and rising inflation. The Producer Price Index (PPI) grew by 0.9% while the Consumer Price Index in China increased by 2.8%, both of which had an impact on the market. The "Zero-Covid" policy in China has so far had a big impact on investor confidence and the nation's economic operations. The market remained competitive because of rising production costs brought on by rising energy prices as well as increased domestic output to meet demands from both domestic and foreign markets. Later in December, as domestic merchants had sufficient stock on hand, Povidone prices did begin to decline. The market's ongoing decline was also influenced by the ease of strict covid policies and the weak downstream demand. In December, the settlement price for Povidone fell to USD 10750/MT FOB Shanghai.
Europe
In the fourth quarter of 2022, prices for Povidone showcased a soaring trajectory in the European region. The downstream market for the pharmaceutical sector was seen to have a steady demand for Acebutolol API. Price hikes were brought on by ongoing port congestion and supply disruption in the European region throughout Q4 022. Also, the European annual inflation rate was 10.6% in Q4 2022, up from 9.9%. Retailers in Europe decide to refill their inventory due to the approaching Christmas season considerably. Also, to ease the inflationary pressure, the market players were propelled to raise their quotations in order to slow down the demand and consumer consumption. The cost of Povidone was USD 9890/MT CFR Hamburg toward the end of Q4 2022.
For the Quarter Ending September 2022
North America
The prices of Povidone experienced a downward trend due to feeble sentiments in the US market. Povidone price commenced the month on a negative note, with low to no demand with existing supplies in the US region. In the third month of Q3, the prices increased marginally due to increased production costs. Furthermore, increased freight charges also affected the Povidone market in the US market. Rising inflation further added to the tight market sentiments in the other half of Q3. Towards Q3 2022, the prices witnessed lowering values due to stable demand, and existing inventories, with values accessed at USD 10850/MT with an average quarterly declination of 0.89%.
Asia
Starting with the third quarter of 2022, the Povidone market in the Asia Pacific region experienced an inclined price trajectory. Stable demand sentiments from the end-user pharmaceutical sector kept the market tight. Also, adverse weather conditions and production units in the major exporting countries going under complete shutdown under the influence of zero covid policy affected the supply chain in the Asia Pacific region. Later with the commencement of the second half of Q3 2022, the prices reduced with lowering demand sentiments in the Asia Pacific region. Towards the termination of the third quarter of 2022, the values accessed USD 9065/MT, with an average quarterly inclination of 0.93%
Europe
Povidone market dynamics witnessed a downward trend on the back of low to no demand from the downstream medical industry and other pharmaceutical sectors. The Povidone market started with stable market sentiments on steady demand and stable production. Later, with the commencement of the second half of Q3 2022, the price decreased considerably due to lower demand from the end-user sector. With rising inflation, domestic merchants were forced to lower their quotations to enhance demand from the consumer sector. The supplies were left with enough existing inventories, further propelling them to decrease the prices. Toward Q3 2022, with enough supplies and sufficient inventories, Povidone prices decreased in the domestic market with values accessed at USD 10970/MT with an average quarterly declination of 2.33%.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the Povidone market has been termed accelerating in the North American region owing to a slight increase in demand fundamentals. Demand from the downstream pharmaceutical and other industries increased with gradual stabilization throughout Q2 2022. Povidone is used as an excipient in treating infections, in adhesives and coatings, etc. The borderline fluctuation on the higher side was experienced as global imports and export remained weak. Hindered supply chain and port congestion owing to lockdown imposition in exporting countries slightly affected Povidone's prices. Towards the termination of the second quarter of 2022, the prices were recorded to be USD 11160/ton, with an average quarterly inclination of 0.89%
Asia
During the second quarter of 2022, the povidone market in the Asia Pacific region experienced an inclined price trajectory quarter. Povidone is used as an excipient in treating infections, in adhesives and coatings, etc. Strong demand from the downstream pharmaceutical and other industries has kept the market tight. Regardless of stable order, gradual fluctuations on the higher side were experienced as the global trade market remained feeble due to the conflicts between Russia and Ukraine. Due to strict policies in exporting countries, supply chain disruption and port congestion propelled domestic merchants to raise their quotations. Towards the termination of the second quarter of 2022, the prices were recorded to be INR 985400/ton Ex-Vapi, with an average quarterly inclination of 4.71%
Europe
In the European region, Povidone market dynamics were decreasing on the back of moderate demand from the downstream medical industry and other industries like pharmaceutical, etc. At the onset of the first half of Q2 2022, the povidone prices decreased owing to wavering demand. The suspended trading activities in the European continent due to geopolitical tension and strict policies imposed on major exporting Asian countries affected the Povidone prices in the second month of Q2. Towards the end of Q2 2022, with enough supplies and sufficient inventories, Povidone prices decreased in the domestic market. As a result, it prompted an unstable price trajectory, but with adequate supplies and steady demand, Povidone prices dropped towards the end of Q2 2022, with values accessed at USD 11780/MT with an average quarterly declination of 2.22%.
