Rising Energy Costs and Inflation Weigh on Paracetamol API Prices in Europe
- 16-Nov-2022 10:49 AM
- Journalist: Bob Duffler
Hamburg: Paracetamol API prices in Germany continued to rise due to persistent demand, high manufacturing costs, rising inflation rates, and supply problems in European ports in November 2022. According to ChemAnalyst data, a 2.22% price rise in the European region broke the downward trend for Paracetamol API prices. Improved buying sentiments from the downstream pharmaceutical companies further support the upward price trajectory.
German buyers began trading due to the recent surge in orders and a dearth of supplies in the local market, raising the price of Paracetamol API. The market for Paracetamol API has expanded due to shifting supply-side factors. The yearly inflation rate in Germany has reached 10.4% since 1990. Considering the rising inflation, Germany is raising public spending this quarter to promote economic growth. The region also suffers from a significant shortage of vehicles and drivers due to the persistent labor scarcity brought on by inflation. Trade services in the continent were disrupted by port congestion caused by cargo bunching and cancellations activities. Germany has also been severely impacted by traffic jams and the intensity of marine freight. These concerns affected the already overworked trucking sector, where the issues of driver shortage and rising fuel prices increased.
The German market exhibited similar trends as the Asian owing to the pharmaceutical industry's dependence on the APAC region with almost 80% of imports. The extended production halt brought on by the Chinese golden week festival also influenced the APAC and European markets. Because there are insufficient supplies to meet downstream demand and limited stockpiles, Paracetamol API prices have hiked considerably.
The ChemAnalyst expert believes that the price of Paracetamol API will decrease over the following months due to adequate supplies in the German market. Additionally, low demand and increasing pressure from Asian imports may impact the price of Paracetamol API.