The prices of Neomycin Sulphate are expected to remain elevated by the end of January 2025 in Western markets. This trend is driven by consistent demand from the healthcare and pharmaceutical industries, coupled with constrained supply among market players.

Key Takeaways:

• Robust demand from the healthcare and pharmaceutical sectors is expected to push Neomycin Sulphate prices higher.
• Lunar New Year production shutdowns in China will disrupt supply.
• Anticipated tariffs on Chinese goods are likely to raise import costs.
• The weakening euro against the dollar is raising import costs for German buyers.
• Chinese exporters may redirect shipments to Europe, compensating for potential US market losses due to tariffs.

As the Lunar New Year holiday approaches in China, Neomycin Sulphate prices in key Western markets of United States and Germany, are expected to rise significantly. China, a primary supplier of APIs (active pharmaceutical ingredient), will experience widespread production and export disruptions during the holiday, which begins on January 29, 2025. The celebration typically leads to extended factory shutdowns lasting two to three weeks, during which most manufacturers halt operations.

In USA, the proposed 10% tariff hike on Chinese-made goods by former US President Donald Trump, set to take effect on February 1, is expected to push Neomycin Sulphate prices higher. In response, US importers are fast-tracking shipments to avoid the impending cost hike, temporarily increasing demand. This rush to secure inventory could strain the supply chain, depleting stock and drive-up prices in the short term. Moreover, the tariff will directly raise the cost of Neomycin Sulphate, with importers likely passing on these higher costs to buyers.

In anticipation of this period, exporters focus on fulfilling international orders ahead of the holidays, creating tighter global supply conditions. The resulting limited availability is likely to drive Neomycin Sulphate prices higher, as importers rush to secure stock before the production slowdown takes full effect.

In Germany, the depreciation of the euro against the US dollar has led to higher import costs for Neomycin Sulphate, with these increased costs being passed on to consumers, driving up prices. Furthermore, the expected tariff hikes on Chinese goods in the U.S. may prompt Chinese exporters to target European markets, especially Germany, to compensate for potential losses in the U.S. market. This shift could heighten export demand from China to Europe, potentially tightening supply conditions for Neomycin Sulphate and further driving up prices.

Overall, with tighter supply, higher demand, and inflationary pressures already in play, Western markets will likely see higher Neomycin Sulphate prices.