In early January, the Chinese Paracetamol market had returned to a more stable base after experiencing a slight decline during December. The drop was in part due to plentiful export-driven supply for Paracetamol and weak spot buying from overseas customers, not because of disruptions to production or availability of raw materials. By the second week of January, prices had settled as sellers would not entertain deeper discounts, and buyers began to engage again following the end of year slowdown. Supply levels across the product remained well balanced as all major producers were operating their facilities at normal rates of production, their inventories were not excessive, and there were smooth logistics supporting predictable production levels with very little volatility. On the demand side, domestic pharmaceutical manufacturers were continuing to procure product in accordance with their normal procurement schedules, while export customers were primarily procuring product through contracts as opposed to buying more on the spot market. Looking ahead, major participants expect prices to move higher through the January period at a moderate pace. Expectations for the first quarter procurement, greater amounts of inquiries from potential export customers, and a firm sentiment from sellers support an improved outlook for the future on market conditions.
