Global Oxytetracycline Hydrochloride Prices Escalate in Support of Firm Demand

Currently, the prices of Oxytetracycline Hydrochloride have been increasing at a solid pace across the globe amid strong demand from end-user industries. Market participants have observed a rise in new orders after the ease of inflationary pressure.

After the fall in inflation, China is heading toward its path of economic recovery, which in turn results in better consumer confidence, high purchasing activity, and a rise in demand. In China, Oxytetracycline Hydrochloride prices have gained momentum, backed by robust market fundamentals. The market sentiments have largely improved by the stubbornly high demand side, and there have been instances of new orders being acquired by end-user producers from the pharmaceutical and healthcare industries. In terms of domestic production, operating rates have continued to strengthen in China following the removal of all COVID restrictions due to continuous  Oxytetracycline Hydrochloride consumption. The Purchasing Managers' Index (PMI) in China increased to 52.6 in February as manufacturing activities in industries improved after several months of below-par performance. Meanwhile, Chinese foreign trade also improves, with exports hitting a new high after easing supply chain disputes. Therefore, FOB Shanghai prices of Oxytetracycline Hydrochloride are expected to surge further by the end of  March, even after climbing a total of 4.8% in the first two months of 2023.

Similarly, the price trend of Oxytetracycline Hydrochloride in the USA and Germany also followed an upward trajectory after heading into Q1 2023. The market sentiments for Oxytetracycline Hydrochloride remained strong, considering improvements in procurement and needs. The rising prices are reinforced by the surge in demand from drugmakers in the US and German markets. Meanwhile, domestic retailers from the respective countries are receiving high import prices from major exporting countries like China. Consequently, market suppliers have raised the prices in their domestic market to maintain their profit margin. Therefore, Oxytetracycline Hydrochloride prices have increased by about a total of 9.3% in the USA and 10.3% in Germany, respectively, until the last week of February.

As per ChemAnalyst, the prices of Oxytetracycline Hydrochloride are likely to increase further in the global market in support of growing demand from the end-user sector. At the same time, raw material costs may also rise, which may increase the production cost of the product.