In the fourth quarter of 2022, the Erythromycin Prices in North America experienced fluctuations. Prices began to climb in Q4 2022 and continued to do so throughout the second 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 December 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 Erythromycin API settlement price fell to USD 156910/MT CFR Los Angeles.
The Asia Pacific Erythromycin API 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, Erythromycin API prices did begin to decline. The market's ongoing decline was also influenced by the policies being relaxed and the weak downstream demand. In December, the settlement price for Erythromycin API fell to USD 142100/MT FOB Shanghai.
In the fourth quarter of 2022, prices for Erythromycin API varied in the European region. The downstream market for the pharmaceutical sector was seen to have a steady demand for Erythromycin API. Price hikes were brought on by ongoing port congestion and supply disruption in the European region in the first two months of Q4 022. Also, the European annual inflation rate was 10.6% in October 2022, up from 9.9% in September. Retailers in Europe make the decision to refill their inventory due to the approaching Christmas season considerably. However, prices decreased dramatically in December as a result of a fall in inflation (The euro area annual inflation rate was 10.1%, down from 10.6% in October), relief from port congestion, a slight increase in existing inventories among the merchants, and a considerable decrease in the freight charges keeping the market at ease. The cost of Erythromycin API was USD 160800/MT CFR Hamburg toward the end of Q4 2022.
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