Shrinking Demand Hampers Diclofenac Sodium API Prices in the US and Germany

After maintaining a stable trend, and an upbeat outlook for several months, the prices of Diclofenac Sodium API in Germany and the US will undergo a significant fall throughout December 2022. Additionally, owing to decreasing demand from the downstream industry for Diclofenac Sodium API and decreased freight costs, business confidence is predicted to remain incredibly low throughout December 2022.

In comparison to how it was throughout the pandemic, consumer optimism for Diclofenac Sodium API decreased in Germany and the US. The prospect of a recession is one factor that continues to influence and maintain the negative trade sentiments for Diclofenac Sodium API in both the German and US markets. German government representatives claimed that decreasing power and distributed natural gas prices were the primary factors in reducing production costs. Furthermore, consumer spending activities were already low due to Germany's high rate of inflation, its declining currency, and the country's rising cost of living. Additionally, the traders and suppliers were compelled to decrease their prices in order to promote sales and foster a high downstream demand due to the domestic merchants' prior hoarding of Diclofenac Sodium API.

Additionally, the impending US Christmas season will negatively impact consumer demand, prolonging the downward trend of Diclofenac Sodium API. As a result of a widespread reduction in aggregate demand, prices will frequently decline during the next few weeks in December 2022. Furthermore, the backlogs at important ports have been cleared, improving the market's overall supply chain and positively impacting trade sentiment. As retailers build up more extensive inventories and marine transportation costs steadily decline, the cost of Diclofenac Sodium API is likely to trend downward.

According to Chemanalyst, as orders may increase in the upcoming months, there will be a global demand for Diclofenac Sodium API. New production and improved manufacturing rates to meet the downstream demand will likely influence positive market sentiments. Further, restocking among the merchants in the domestic market forced them to raise their quotations, likely to keep the market tight.