For the Quarter Ending March 2025
North America
In Q1 2025, pharmaceutical raw material prices in the U.S. exhibited mixed trends influenced by trade policies, seasonal demand, inventory strategies, and logistical challenges. Aspirin prices saw significant volatility—rising sharply in January and February due to pre-tariff stockpiling, Lunar New Year demand, and energy cost inflation, but falling in March as weakened demand and oversupply led to aggressive discounting. Naproxen prices increased steadily by 5.26% quarter-over-quarter, supported by robust demand from pharmaceutical and personal care sectors, seasonal consumption patterns, and a preference for domestic procurement due to tariff-related uncertainty.
Salicylic Acid prices surged in January, declined in February due to post-holiday oversupply and cautious sentiment, and rebounded by 1.99% in March amid renewed trade tensions and inventory replenishment. Amlodipine Besylate mirrored this volatility: prices rose moderately in January due to pre-tariff buying and logistical issues, dropped in February with improved supply, and inched upward again in March on renewed procurement ahead of further tariff implementation.
Paracetamol displayed a bearish tone with a 3% decline in January due to weak demand and oversupply, continuing its downtrend in February before seeing a short-lived rebound in March amid new tariff impositions. Ibuprofen prices spiked early in the quarter on tight supply and strong demand but fell in February due to oversupply and cautious buying; March saw short-term price support following tariff announcements and logistical constraints. Omeprazole followed a similar path—January price hikes driven by tariff fears and Lunar New Year stockpiling were followed by February declines from increased Chinese output, with a modest March rebound due to precautionary buying and improved inflation sentiment.
Overall, Q1 2025 was marked by fluctuating price dynamics across key pharmaceutical raw materials, with tariffs, supply chain adjustments, and economic sentiment serving as major drivers.
Europe
In Q1 2025, pharmaceutical raw material prices in Europe exhibited varied trends shaped by shifting demand, currency movements, and logistical disruptions. Aspirin prices in Germany began with moderate increases due to strong healthcare demand and restocking but softened in March as improved import conditions and sluggish post-holiday demand led to a slight overall decline. Naproxen prices rose steadily by 3.71% quarter-over-quarter, supported by firm pharmaceutical and personal care demand, consistent seasonal consumption, and smooth logistics across the region. Salicylic Acid showed notable volatility—prices surged in January with Lunar New Year stockpiling and Red Sea disruptions, dipped in February due to strong Euro and ample supply, and rebounded in March on tightened availability and improved pharmaceutical demand. Amlodipine Besylate experienced price fluctuations as January’s gains from early restocking and strong sentiment gave way to February declines from low demand and currency-driven cost reductions, but March saw a recovery amid European port disruptions and renewed sector confidence, ending the quarter with a moderate upward trend. Paracetamol in Germany declined sharply by -3.61% in January due to oversupply and favorable Asian imports, continued dropping in February, then rebounded strongly in March as port strikes and Q2 restocking tightened supply and revived supplier pricing power. Ibuprofen saw an overall upward trend, with initial January gains from proactive stockpiling, a February dip due to high inventory and eased logistics, and a sharp March rebound driven by severe port congestion and restocking. Omeprazole prices in France also followed a U-shaped curve, rising in January on strong healthcare demand and restocking, declining in February on cheaper imports and soft sentiment, and rising again in March as pharmaceutical procurement strengthened.
Collectively, Q1 reflected a volatile European market landscape, with pricing largely responsive to supply chain conditions, economic sentiment, and seasonal buying patterns.
APAC
In Q1 2025, pharmaceutical raw material prices in China experienced mixed yet largely upward trends driven by supply chain disruptions, seasonal factors, and international trade developments. Aspirin prices steadily increased throughout the quarter, driven by robust healthcare demand, reduced output before the Lunar New Year, and export rushes ahead of anticipated U.S. tariffs. Salicylic acid showed a sharp price surge in January, followed by a correction in February due to sluggish domestic consumption and higher inventories, and then a moderate rebound in March, resulting in a net increase supported by rising phenol costs and restocking efforts. Naproxen prices across the Asia Pacific region, including China, rose moderately by around 2.61%, supported by steady pharmaceutical demand and strategic buying despite holiday-related production slowdowns. Amlodipine Besylate saw moderate gains—initial increases in January from export-driven demand and holiday-related supply cuts were briefly offset in February by weak consumption and high domestic stock, before a March rebound driven by pre-maintenance restocking and stronger demand. Paracetamol faced a steep decline in January and February due to oversupply and weak demand but recovered in March as inventories cleared and export orders resumed, leading to modest price stabilization by quarter’s end. Ibuprofen mirrored this pattern, with early gains from export demand ahead of tariffs, a February dip from high inventories and sluggish activity, and a March recovery driven by tighter supply, input cost inflation, and improving PMI index. Omeprazole prices increased consistently through Q1, with export demand and supply disruptions ahead of U.S. tariffs tightening availability, and firm domestic and foreign demand maintaining upward price momentum. Overall, Q1 2025 in China reflected a volatile yet resilient market, where raw material prices were shaped by a convergence of holiday disruptions, tariff anxieties, and fluctuating domestic demand.
For the Quarter Ending December 2024
North America
North American active pharmaceutical ingredient (API) sector exhibited market equilibrium across the majority of compounds, with select exceptions marking notable deviations during Quarter 4 of 2024. Core API commodities including Omeprazole, Levocetirizine Dihydrochloride, Naproxen, Amlodipine Besylate, Ibuprofen, Azithromycin, and Salicylic Acid maintained price stability, supported by balanced demand-supply dynamics and sufficient inventory levels. However, several key APIs experienced significant price deterioration compared to previous quarters, with Acetylsalicylic Acid (Aspirin) showing -8.30% MoM depreciation, Paracetamol registering >6% quarterly reduction, Amoxicillin Trihydrate demonstrating -4% value erosion, and Azithromycin Dihydrate recording an approximate -2% decline. Multiple market forces contributed to this downward price trajectory, primarily driven by strategic inventory accumulation in the latter half of Q4. This accumulation was triggered by dual concerns: anticipated ILA industrial action in mid-January and pre-emptive stockpiling ahead of the Chinese Lunar New Year, creating a supply surplus and generating downward price pressure. Market participants adjusted pricing strategies to maintain competitiveness in this oversaturated environment. Additionally, market sentiment was impacted by proposed tariff implementations, including a universal 10% duty on U.S. imports and a substantial 60% levy on Chinese-manufactured goods, leading buyers to adopt a conservative procurement approach and further amplifying the price depression.
Contrarily, Several APIs demonstrated positive price movements, with Naproxen exhibiting 3% M-o-M appreciation, while Amlodipine Besylate demonstrated moderate stabilization at 0.83%. Omeprazole maintained relatively static values with a minimal uptick of 0.07%, and Ibuprofen registered a moderate increase of 1.05% in supplier pricing. These price stabilizations and incremental rises primarily stemmed from robust demand fundamentals across both North American procurement channels and end-user consumption patterns, compelling importers to accept marginally elevated acquisition costs.
Overall, North American API market presents a bifurcated pricing trend in Q4 2024, characterized by significant price depreciation in certain compounds while others demonstrate resilience or modest appreciation. These divergent trends underscore the complex interplay between regional demand dynamics, supply chain considerations, and broader macroeconomic factors influencing the pharmaceutical raw materials sector.
Asia Pacific
The Chinese API market demonstrated diverse price trajectories during the fourth quarter of 2024, characterized by both stability and volatility across different segments. In the positive spectrum, several key APIs exhibited upward price momentum, with Levocetirizine Dihydrochloride showing a modest increase of +0.62% quarter-over-quarter, while Ibuprofen demonstrated a monthly growth of 1.6%. Similarly, Omeprazole showed growth at +0.75%, Naproxen displayed robust performance with +3.28% appreciation, and Amlodipine Besylate recorded consistent growth at +1.3% month-over-month. These positive trends were primarily attributed to sustained end-user demand from both domestic and international pharmaceutical consumers, coupled with consistent buyer inquiries and strategic pricing decisions by Chinese suppliers.
Conversely, certain API segments experienced notable price corrections during the same period. Azithromycin Dihydrate witnessed a 2% decline compared to Q3 2024, while Aspirin (Acetylsalicylic Acid) prices contracted by 1.4%. More significant decreases were observed in Paracetamol and Salicylic Acid, with approximately 4% and 3.13% quarterly declines, respectively. These downward trends were primarily driven by subdued consumer demand, diminished business activity, and surplus inventory positions. Many suppliers strategically reduced prices towards the end of Q4 2024 to maintain market competitiveness and manage year-end inventory levels. However, a noteworthy exception emerged in December when Paracetamol prices experienced an unprecedented surge due to production constraints, critically depleted inventories, and heightened post-holiday demand from Western markets.
The Chinese API market in Q4 2024 exhibited a complex pricing landscape, reflecting the interplay of various market forces including demand-supply dynamics, inventory management strategies, and regional market conditions. While some segments demonstrated resilience through stable or appreciating prices, others faced downward pressure due to market oversupply and reduced demand.
Europe
The German API market in Q4 2024 largely mirrored the price trends observed in China, its primary API source, while displaying some region-specific variations. A notable downward trend was observed across several key API commodities, with Paracetamol, Metformin, Amoxicillin Trihydrate, and Aspirin experiencing significant quarterly declines compared to Q3 2024. This bearish price trend was primarily attributed to subdued market fundamentals and reduced consumer demand in the region.
While most APIs followed a declining trajectory, certain commodities like Amlodipine Besylate and Ibuprofen demonstrated resilience with modest price appreciation during the quarter, supported by sustained pharmaceutical demand and strategic inventory management by suppliers. However, market dynamics shifted quite notably in December, particularly for Paracetamol, Naproxen and several other APIs, which experienced price appreciation due to multiple factors such as increased procurement costs amid high demand.
The winter season played a crucial role in shaping market sentiment, as harsh weather conditions significantly impacted both consumer behaviour and supply chain operations. The severe weather led to logistical disruptions, causing delivery delays and prompting end-users to postpone their procurement decisions. Additionally, reduced consumer spending during this period further dampened market sentiment, contributing to the overall price decline. The combined effect of these factors created a challenging market environment, particularly affecting the pricing dynamics in the latter part of Q4 2024.
