Weak Downstream Demand Propels Metformin Hydrochloride Prices to Go Southward

Metformin Hydrochloride prices decreased in the global market during the month of March 2023 on account of bearish downstream demand from the domestic and international markets.

In the APAC region, participants attributed the weaker market sentiment due to low downstream demand and sufficient availability. Metformin Hydrochloride requirements in the Chinese market reduced somewhat during the end of the first quarter of 2023, because of which the market participants had to cut expenses and focus on the destocking process to maintain their profit margin. Additionally, the weaker price trends in the month of March have supported regional port congestion, vessel clustering, and a halt in shipments. Thus, lowering the supply chain reinforced the lower market price trend of Metformin Hydrochloride until the end of March 2023.

Similarly, the European Market demonstrates a lower price trajectory for Metformin Hydrochloride at the end of Q1 2023. Compared to previous months, the demand from the local market did not meet the expectations of retailers and suppliers, so they were compelled to reduce their prices for Metformin Hydrochloride to balance the overall profit margins for the month of March.

On the other hand, the somewhat rise in inflation pressures and worries about the reduction in inquiries have kept traders and domestic market participants pulling back their quotations. Moreover, compared to February, this month, the inventories of Metformin Hydrochloride in the local region were sufficient to cater to the inquiries from the terminal market. Overall, the reduction in customer requests for Metformin Hydrochloride from the pharmaceutical and healthcare sectors, coupled with enough stockpiles, had kept the market trend for this product in the downward direction.

As per ChemAnalyst, " The cost of Metformin Hydrochloride is projected to remain on the lower side due to reduced demand in upcoming months. Market participants are expected to maintain sufficient stock to meet immediate orders across the globe. Moreover, end-user players are likely to exhibit poor buying interest amid weak demand. Based on the demand, trade activity is likely to remain normal still on the lower side."