Levocetirizine Dihydrochloride Prices Show a Downward Trend Globally Amidst Weaker Demand

The prices of Levocetirizine Dihydrochloride continued to decline in China throughout June due to a further decline in demand from end-user sectors. Market participants were forced to lower prices to attract foreign buyers, reduce inventories, and maintain profit margins.

There is always a constant demand for Levocetirizine Dihydrochloride in the global market as it is widely used to treat a variety of allergic conditions, including skin reactions such as hives, hay fever, eczema, conjunctivitis, and reactions to bites and stings. It also relieves itching, swelling, watery eyes, runny nose, and sneezing.

China is a major producer and exporter of pharmaceutical Active Pharmaceutical Ingredients (APIs), including Levocetirizine Dihydrochloride. According to the National Bureau of Statistics, China's official manufacturing Purchasing Managers' Index (PMI) rose to 49.0 from 48.8 in May, in line with market expectations, but also pointed out that factory activity had fallen for the third consecutive month. China's post-pandemic recovery has slowed, with new orders falling, purchasing activity and export sales halting, suggesting lowering demand from end-consumers. This caused the Chinese factory activity to slow down and decline in production activity. In addition, China's exports declined sharply in June 2023 since Feb 2020, which increased supply in the Chinese domestic market and further put downward pressure on prices.

As per the National Bureau of Statistics, China's producer prices fell 5.4% year-on-year in June 2023, surpassing the previous month's 4.6% decline. It was the ninth consecutive month of producer deflation in June, and the biggest drop as weaker demand and lower commodity prices pushed Levocetirizine Dihydrochloride prices down. Apart from that, In June 2023, China's consumer price index (CPI), an indicator of inflation, remained unchanged, according to the National Bureau of Statistics, further supporting the downward trend of Levocetirizine Dihydrochloride prices.

A similar downward trend is observed in the US and European markets in June 2023. In the United States, Levocetirizine Dihydrochloride prices declined due to lower domestic and global demand as well as lower prices in exporting countries such as China. In addition, lower inflation in the US led to lower APIs prices, explaining the decreased prices of Levocetirizine Dihydrochloride. While in Europe, specifically in Germany, the Levocetirizine Dihydrochloride prices also declined as in the previous month due to consistently lower demand from the downstream sector coupled with more supply. Market players have sufficient stock to cater to the existing demand in the market.

As per the ChemAnalyst analysis, the prices of Levocetirizine Dihydrochloride are expected to increase moderately in the upcoming months due to surging demand from end-user healthcare and pharmaceutical industries. Improving trading activity will also support increased prices.