Global Povidone Prices Likely to Witness a Moderate Rise Amidst Rising Input Costs and Demand

As per the market estimation by various industrial giants, it is anticipated that the price of Povidone will witness a moderate uptick during the entire month of October 2023. Povidone, commonly known as Polyvinylpyrrolidone (PVP), is primarily used as an antiseptic and disinfectant agent, and one of the major factors that might result in rising cost of Povidone includes the persistent disruption within global supply chains. The growing demand for a combination of anti-infectious therapy and a healing-promoting moisturization in topical drug formulations kept the manufacturers enough Povidone inventories at their warehouses to meet the sudden rise in the demand side.

Concurrently, as compared with the prior month, China displayed declines in September export momentum, illustrated by diminishing foreign demand and subdued domestic consumer expenditure. However, the market participants anticipate that the inquiries from the global market might surge in October and the forthcoming period. Owing to rising demand for Povidone from domestic and within the regional market, the merchants are likely to focus on destocking their previous stockpile at a higher cost than anticipated. This was further supported by clearing out their inventory levels before the arrival of the next quarter, as they would be able to restock their shelves with newer inventory levels.

Furthermore, the rising cost of raw materials for Povidone, notably 1,2 Butanediol, also supports an upward price trajectory. Rising costs of inputs, such as surging energy prices, kept the manufacturing activity on the upper side, resulting in an increase in 1,2 Butanediol prices across the globe. Besides this, the world's leading exporter, China, is on the brink of a temporary production slowdown due to upcoming events. The arrival of upcoming events such as the imminent eight-day Mid-Autumn Festival, the occurrence of the Hangzhou Asian Games, and the National Day holiday are expected to affect the supply chain momentum both within the domestic and overseas markets in the forthcoming period. On top of that, during this holiday season, tourist activity reaches its highest level, thereby suspending production activities. This resulted in a price escalation for all the goods, hence keeping the prices of pharmaceutical excipients such as Povidone in the northerly direction.

This might also result in logistical challenges as the export activity of finished goods might strain the supply chain. Owing to the upcoming events and holidays, the introduction of delays in shipping is expected to disrupt the supply chain momentum in the Povidone business.