Metformin Hydrochloride Prices Inclined on Supply Shortage and Surging Demand

Metformin Hydrochloride price escalated extensively in the global market in November 2022. A recent assessment shows a significant price hike across China, Germany, and South Korea.

Despite a fall in Chinese economic activity below expectations in November 2022, the Metformin Hydrochloride prices highlighted an increment of more than 3.7% for FOB Shanghai on a monthly basis. The fourth quarter saw a steady fall in China's manufacturing activity, a prominent source of the country's economic strength, as an increase in COVID-19 cases brought on further interruptions. The situation resulted in a shortage of Metformin Hydrochloride supply among domestic manufacturers. On the other hand, producers from end-user pharmaceutical industries searched for every tonne of stock available in the market. However, the suppliers raised their prices for the domestic and international markets to sustain their profit margin as they had limited inventory on hand to meet the surging demand.

Also, the data revealed that the price of Metformin Hydrochloride surged by 2.9% in Germany, followed by the market of the leading manufacturer and exporter of this API, i.e., China. The traders in Germany experienced similar market sentiments due to limited stock and strong demand for the product from the end-user industries. However, the suppliers faced a huge demand-supply gap in the regional market, which caused a rise in the prices of Metformin Hydrochloride. Moreover, some traders benefited from inadequate inventories across the German market and revised their offers for end-user buyers.

On the other hand, Metformin Hydrochloride prices stabilized on the higher side in South Korea during November 2022 on the back of rebounded market sentiments. However, this month's trading activities in the domestic market increased from the previous month because of enhanced end-user market sales amid consistent demand.

According to the ChemAnalyst analysis, Metformin Hydrochloride prices may stabilize on the lower side in the global market in the coming month. The current market dynamics might change as end-user players mainly hold weak buying interest amid soft demand, triggering a bearish market outlook.