The Global Valsartan Prices Gradually Shifted Downward in December 2022
- 23-Dec-2022 1:49 PM
- Journalist: Gabreilla Figueroa
During December 2022, Valsartan prices in the international market kept falling due to weak demand from the downstream sector. Valsartan's market growth has been hampered by several factors, including a reduced rate of orders, high supply conditions, lower price pressures, and low consumer confidence amid the economic downturn brought on by COVID-19 cases in China and inflation and stringent monetary controls.
Valsartan prices in China continued to decline in the last month of the year due to the negative demand dynamics from end-user pharmaceutical and healthcare sectors. China's zero-COVID strategy has eased since early December still demand for most API will not improve significantly in the short term. As observed by participants, the market's buying attitude has been slow due to low consumption rates and few inquiries ahead of the year-end holidays. Therefore, prices of Valsartan API USP FOB Zhenjiang have declined by around 3.8% in December 2022.
As Europe approaches the Christmas holidays, the German market sentiment for Valsartan remains weak. In this period, players reported few inquiries from end-user due to the sufficient inventories of Valsartan in the German market. The reason behind the accumulation is that domestic merchants have excessive imports from Asia as they have already placed their orders in advance. However, as reported by various industry players, a recession's risk starts to ease. Along with this, the German Manufacturing Purchasing Managers' Index (PMI) came in at 47.4 points on December 16, 2022, slightly improving from November's 46.2. Still, it remained below the neutral 50.0 threshold that separates growth from contraction. In conclusion, the recent month has seen a decline in Valsartan prices in Germany.
The U.S. PMI remains plummeted below 50 (i.e., 46.2 in December), signaling a decline in manufacturing activity and contributing to the decrease in buyer sentiments in the U.S. market. Additionally, some APIs, including Valsartan, had unfavorable demand dynamics due to the upcoming holiday season, while material supply was enough, further lowering the price of Valsartan by 3.7% in the domestic market.
ChemAnalyst predicts a rise in worldwide Valsartan prices in January 2023, when many producers have fresh inventories to place into the market. Therefore, buyers are more likely to purchase more stocks and push up prices.