Surging Demand Propels to Raise Omeprazole API Prices in February 2023

The Omeprazole API prices are following an upward trajectory in February 2023 across the globe due to a rise in demand and orders from end-user buyers. However, consumer confidence has increased due to the ease of inflationary pressures, lower freight charges, and declines in energy costs, which resulted in high orders from clients. Meanwhile, manufacturers have low inventories due to the heavy demand from the end-user pharmaceutical sector, which propelled them to raise their prices to maintain their profit arbitrage.

In February, the price trend of Omeprazole API was moving upward with an increment of around 2% as demand continued to increase. After the Chinese New Year holiday, the Omeprazole API market started on a positive note in support of the eased pandemic prevention and control policy and recovering consumption. Entering February, the manufacturing activity in China has recovered steadily after returning from holiday, which had slowed down in the previous month, as per the National Bureau of Statistics. Despite the rise in production and operation activity, the supply of Omeprazole API is tight as new orders from domestic and international markets have risen. Trading activities to the international market have also seemed to increase in response to easing supply-chain issues. Overseas buyers are placing heavy orders to replace their old inventories with fresh ones, which is beneficial to Chinese suppliers.

Likewise, France and the US also have encountered high CFR prices for Omeprazole API because buyers faced the costliest import from China, the major exporting country, as the Chinese currency gained against the US dollar. Also, ease in trade disruption from export nations resulted in high orders, which reinforced this price trend during February 2023. Traders and retailers focused on restocking their Omeprazole API inventories in view of increasing demand from end-user pharmaceuticals. Therefore, Omeprazole API prices have risen around 1.3% in the US and around 1.5% in France during the mid of Q1-2023, respectively.

The Omeprazole API prices are anticipated to increase further, according to the ChemAnalyst team, as market participants expect a spike in demand that will force a product manufacturer to ramp up production and supply.