Rising Demand Likely to Keep Upward Pressure on Valsartan Prices
- 21-Mar-2023 12:36 PM
- Journalist: Jacob Kutchner
Valsartan prices are on the rise globally in the second half of Q1 2023 due to an increase in demand and orders from end-user producers. Nonetheless, the relaxation in inflationary pressures, lower freight costs, and drops in energy costs have restored consumer confidence, leading to a high volume of customer orders. Suppliers are encountering high orders due to the high demand from the end-user pharmaceutical industry, which has forced them to increase the prices of Valsartan to retain their profit margin.
As the demand for Valsartan rises, prices have been trending up in March. After the Spring festival ended in January, the Valsartan market rebounded well in February in support of the prevention of pandemic policies. China's industrial activity increased in February, as confirmed by the PMI index, i.e., 51.6, up from 49.2 in January, released by the National Bureau of Statistics. The output grew in February due to an increase in new orders from both local and overseas markets. With increased production and operating activity, the fresh stock is available in the Chinese domestic market. Manufacturers are quoting the new inventories at higher prices in March, further strengthening Valsartan's pricing trend.
In a similar vein, purchasers in Germany and the US have also seen high CFR prices for Valsartan due to expensive import quotations from China. Moreover, easing supply chain disruptions resulted in better trade activities in both countries. Consequently, domestic retailers and merchants are concentrated on replenishing their supplies by placing large orders from the Chinese market to replace their old inventory with new ones. Also, surging demand from the end-user pharmaceutical sector is observed from the US and German buyers, which has resulted in high purchasing activity from both countries.
The ChemAnalyst team predicts that the Valsartan price will rise even more because market players foresee a surge in demand that will push a producer to boost supply and manufacturing to cater to the upcoming orders.