Global Aspirin Prices Projected to Rise in November Amid Positive Consumers’ Sentiments
- 20-Nov-2023 3:26 PM
- Journalist: Gabreilla Figueroa
The prices of Aspirin prices are expected to experience an increase globally in November. The factors contributing to this anticipated upward trend include heightened demand from end-user industries, a relief in inflationary pressures, a potential rise in raw material prices, and subdued trading activities. Aspirin, known for its analgesic, antipyretic, and anti-inflammatory properties, is anticipated to witness a surge in demand during the upcoming winter season, particularly from the pharmaceutical and healthcare sectors, potentially leading to an elevation in prices.
China's internal manufacturing is facing constraints, resulting in an overall reduction in product availability and potentially contributing to an uptick in Aspirin prices. Additionally, a recent surge in domestic consumption, facilitated by lower interest rates and a decrease in inflationary pressures, has bolstered overall demand in the Chinese market, providing additional impetus for the upward trajectory of Aspirin prices. Furthermore, as salicylic acid serves as a precursor and raw material for Aspirin synthesis, the anticipated rise in Salicylic acid prices due to the surge in phenol and sulphuric acid costs in November, key components in the production process, may also contribute to an increase in Aspirin prices.
The U.S. economy remains resilient, exhibiting robust growth despite elevated interest rates. For over a year and a half, the Federal Reserve has sought to curb inflation through higher interest rates, but the US economy persists in its expansion. Consumer spending has remained notably strong, with retail sales for the previous month surpassing expectations and comfortably outpacing inflation. This trend is expected to persist in November, especially with the moderation of inflation, potentially leading to an increase in Aspirin prices. Additionally, a sluggish influx of goods from major exporting nations like China is likely to constrain Aspirin supply in the U.S. market, contributing to a potential rise in prices.
Germany's economic prospects exceeded expectations as the headline sentiment indicator turned positive in November for the first time since April, fuelled by renewed optimism about an industrial upturn. In October 2023, the inflation rate in Germany, measured by the year-on-year change in the consumer price index (CPI), registered at +3.8%, a decrease from +4.5% in September. This ongoing deceleration in the inflation rate, reaching its lowest point since August 2021, has the potential to stimulate consumer spending and possibly lead to an upturn in Aspirin prices.
According to ChemAnalyst's analysis, Aspirin prices are projected to decrease by the conclusion of the fourth quarter, attributed to a decline in consumer demand and ample market supply. The likelihood of the USA and European central banks maintaining steady interest rates may contribute to restraining consumer spending, thereby keeping Aspirin prices at a lower level.