Global Dolutegravir API Prices Surge in September 2023 Amid Rising Demand
Global Dolutegravir API Prices Surge in September 2023 Amid Rising Demand

Global Dolutegravir API Prices Surge in September 2023 Amid Rising Demand

  • 27-Sep-2023 6:40 PM
  • Journalist: Jacob Kutchner

In an unexpected twist, Dolutegravir's Active Pharmaceutical Ingredients (API) prices saw a significant surge in the global market in September 2023, leaving pharmaceutical manufacturers and healthcare professionals perplexed.

Several factors have played a role in causing this price hike. One of the primary contributors to the rise in Dolutegravir API prices is disruptions in the supply chain. Issues with logistics and the sourcing of raw materials have ripple effects across the industry, impacting the production of essential pharmaceutical ingredients like Dolutegravir API.

China, often regarded as the global epicenter of pharmaceutical production, plays a significant role in manufacturing Dolutegravir API. However, import disruptions for essential raw materials and a shortage of critical manufacturing components within China have disrupted the Dolutegravir API production process. As a result, manufacturers grapple with increased production costs and reduced yields, leading to elevated prices for Dolutegravir API. Furthermore, the domestic market for key raw materials has experienced a noticeable uptrend, with prices steadily climbing. This surge can be primarily attributed to a limited domestic supply, which has favored suppliers and pushed Dolutegravir API prices upwards. Nevertheless, downstream activities have remained resilient, resulting in higher quotes from raw material manufacturers. This intricate raw material landscape has contributed to a tight Dolutegravir market in China.

The substantial rise in global demand, including the US market, has put significant pressure on the pharmaceutical supply chain, including Chinese manufacturers, as they strive to meet the growing demand. Faced with production capacity limitations and supply chain disruptions, Dolutegravir API producers have been operating at maximum capacity to meet the demand, thereby straining their resources and leading to higher production costs. Meanwhile, a prolonged dry season and low water levels in the US have necessitated operational adjustments, particularly affecting the largest vessels operating on the Asia/US East Coast route to accommodate the available draft.

Fluctuations in currency exchange rates can exert a substantial influence on the pricing of pharmaceutical raw materials and APIs that are imported. Over the past few months, the Chinese yuan (CNY) has experienced fluctuations relative to major currencies, such as the US dollar (USD). Chinese manufacturers often rely on imported machinery and raw materials, and any devaluation of the yuan can result in increased expenses for these critical components. These heightened costs ultimately translate into higher prices for Dolutegravir APIs.

According to the analysis conducted by Chemanalyst, global prices for Dolutegravir API are expected to rise in the forthcoming months. This trend is anticipated due to the increasing costs of raw materials, driven by rising energy prices. The growing demand from downstream industries is poised to contribute to the ongoing market tightness.

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