US Aspirin Prices Likely to Show Upward Trend in October 2023 Amid Rising Inflation
- 13-Oct-2023 6:50 PM
- Journalist: Jacob Kutchner
Aspirin prices in the United States are projected to rise in October 2023. This can be attributed to factors such as heightened inflation, sluggish trading activities, and sustained demand from end-user sectors, all of which contribute to the upward trajectory of the Aspirin market. Aspirin, also known as acetylsalicylic acid, is commonly used to treat fever, pain, and inflammation, which explains the market's steady demand, which keeps prices high.
China is the top exporter of APIs (Active Pharmaceutical Ingredients) to the USA. Manufacturing activity in China is hampered at the beginning of October due to the annual "Golden Week" holiday. The whole country was on vacation, resulting in the shutdown of enterprises and industries and a 14-day standstill in manufacturing. This resulted in a disturbance in the supply chain and a drop in shipments to other nations, including the United States, leading to a fall in supply in the US market and higher Aspirin prices. Furthermore, China has recently pushed to increase its trade with regional allies in Southeast Asia amidst escalating political tensions with the US, which might further impede exports to the US and keep Aspirin prices higher.
The United States is facing certain political and economic issues. According to recent Bureau of Labor Statistics data, inflation remained high as gas and rent costs remained high, putting more pressure on consumers. CPI climbed 3.7% in the year ended September, slightly more than the 3.6% expected. Energy prices increased 1.5%, gasoline prices up 2.1%, and fuel oil prices increased 8.5%. This results in expensive transportation costs and business overhead, leading to an increase in Aspirin prices.
Furthermore, oil prices rose in October due to concerns that the Israel-Hamas conflict may destabilize the larger Gulf area, which produces petroleum, and jeopardize world supply. The worldwide Brent oil benchmark increased by over 5%, reversing a significant decline in recent weeks. There is no large oil and gas infrastructure in southern Israel or the Gaza Strip. Nonetheless, the larger Gulf area is crucial for producing and transporting a major portion of global oil output. A protracted battle in the area may severely reduce global oil supplies and skyrocket prices. These numbers show that inflation is expected to rise, requiring the US Federal Reserve to maintain higher interest rates until inflation returns to 2%. This would further impact the market situation in the USA and keep Aspirin prices higher.
According to ChemAnalyst research, Aspirin prices are expected to stay high in the upcoming months due to low market stocks and rising demand from end sectors. This winter is expected to bring about the viral season, increasing market demand and maintaining the higher cost of Aspirin. Furthermore, by the end of the most recent quarter, inflationary pressure will be predicted to decline, which might aid in the Aspirin market's expansion.