Omeprazole Prices Likely to Surge in US and Europe Amidst Tight Supply
Omeprazole Prices Likely to Surge in US and Europe Amidst Tight Supply

Omeprazole Prices Likely to Surge in US and Europe Amidst Tight Supply

  • 21-Nov-2023 6:22 PM
  • Journalist: Yage Kwon

In November, Omeprazole prices are anticipated to increase in the US and European markets. This can be attributed to heightened demand from end-users, a relief in inflation, subdued trading activities, and constrained supply. Omeprazole, widely utilized for addressing gastrointestinal conditions associated with excessive stomach acid, is witnessing a surge in demand from the pharmaceutical and healthcare sectors, potentially leading to an upward price movement.

China's unexpected contraction in factory activity, as indicated by recent data, has raised concerns about the condition of the country's extensive manufacturing sector and its delicate economic recovery at the beginning of the fourth quarter. The manufacturing sector is anticipated to face additional challenges in the fourth quarter, with most factories striving to complete work by year-end, resulting in low production and limited stocks in the market, which may exert upward pressure on Omeprazole prices. Also, manufacturers have reported higher prices for raw materials and oil, leading to an increase in the rate of input inflation to a nine-month high. The prices of pyridine, a crucial raw material, displayed an upward trend in early November, potentially contributing to the upward movement of Omeprazole prices. Additionally, new product launches and improved client demand, both domestically and internationally, are expected to support growth, maintaining a favorable market for Omeprazole. Moreover, strengthening the Chinese yuan against the USD could result in sluggish exports to foreign nations in November, limiting overall supply in the USA and European markets and potentially leading to a rise in Omeprazole prices.

The US economy continues to demonstrate resilience, displaying robust growth even in the face of elevated interest rates by the Federal Reserve. Consumer spending has remained notably strong, evident in retail sales for the preceding month, exceeding expectations and comfortably surpassing inflation rates. This trend is anticipated to endure in November, particularly with the further easing of inflation, potentially contributing to an uptick in Omeprazole prices.

Similar to the USA, the French economy is poised to sustain modest growth in the final quarter of the year, avoiding a contraction that has already impacted the entire euro area, as per a survey conducted by the country's central bank. The Bank of France indicated that ongoing growth in the services sector and a slight recovery in the industry are expected to contribute to an economic output increase between 0.1% and 0.2%. Additionally, the recent decline in inflation in France for October signifies a notable alleviation in Eurozone headline inflation, potentially boosting consumer confidence from the previous month and influencing the upward trend in Omeprazole prices.

ChemAnalyst projections suggest a continual rise in Omeprazole prices in the upcoming months, fueled by increased demand from the healthcare and pharmaceutical sectors. Furthermore, expectations of restrained trading activities could introduce additional limitations on Omeprazole supply in the European and USA markets, maintaining an overall upward trend in market sentiments.

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