For the Quarter Ending September 2022
North America
The US Aspirin API market commenced the 3rd quarter of 2022 on a negative note. However, prices started inclining from mid-H1 and declined again in the latter weeks of the quarter. Therefore, continuous fluctuation in price trends was due to numerous factors, such as the unstable supply of inventories in the domestic market and fluttering demand from the end-user pharmaceutical sector. In addition, turbulences in logistic activities, piled-up cargo at the port, and variations in seasonal conditions in the major exporting country, China, affected the Aspirin market. In August and September, speculation about a US recession gained traction as consumer demand hovered and inflation rates for several commodities remained uncertain. As a ripple effect, the Aspirin API prices for CFR Los Angeles settled at USD 5350/MT in September 2022.
Asia- Pacific
In the Asia Pacific region, the Aspirin API price trend showcased a downward trajectory during H1 of Q3 2022, with FOB prices settling at USD 4480/MT in August 2022. This trend was influenced by declining feedstock prices such as Acetic Anhydride and Salicyclic Acid. However, a depreciating demand for Aspirin API in the domestic market and slow offtakes from end-user pharmaceutical and healthcare sectors resulted in bearish market sentiments. Moreover, new policies and stringent COVID protocols have contributed to the declining price trend. As H2 of Q3 approached, an improvement was seen in the market dynamics of Aspirin API, with prices inclined to USD 4650/MT. Therefore, rising demand and a positive buyer mood from the downstream sectors kept the price trend upward.
Europe
Aspirin API showcased a fluctuating price movement in the European market during the third quarter of 2022, resembling the price trend of the Asian and North American markets. In July, the lack of inquiries from the downstream pharmaceutical sector dampened the market sentiments for Aspirin API in the German domestic market. However, in August, higher Aspirin API prices were driven by logistical issues and scarcity of supply. Additionally, China's import activities to Germany were unstable due to various factors, such as frequent lockdowns, plant shutdowns, and high-temperature maintenance. Therefore, traders were ready to bargain over the purchases as fear of recession loomed from late August to the last week of September. Thus, the Aspirin API prices in Germany were settled at USD 5865/MT by the end of the quarter.
North America
The market of Aspirin API showcased mixed sentiments during the second quarter of 2022 in the North American region. The prices of Aspirin API in the United States declined till May and regained their upward momentum in June. The primary factor behind an overall decrease of 7% till May was decreased demand from the downstream pharmaceutical industries amidst weak purchasing momentum and overflowing stocks. By the termination of the quarter, the Aspirin API market started to improve slightly owing to its increasing demand and limited inventories in end-user pharmaceutical ventures. Furthermore, the fluctuation in energy costs and freight charges also led to the instability in the price of Aspirin API. The CFR prices for Aspirin API were assessed at USD 5610/MT in the United States at the end of the quarter.
Asia- Pacific
In the Asia Pacific region, the Aspirin API market revealed an assorted sentiment with price fluctuations during the entire second quarter of 2022. With entering April, a slight improvement was seen compared to the previous month, but prices of Aspirin API slipped drastically by 5.5% in May and became stable in June. The lockdown in Shanghai with rising COVID cases continued to make exports of API unstable. Trading activities in China remained disturbed from May, leading to stockpiling of Aspirin API in the market. Also, the downstream pharmaceutical industry's demand flicker with uncertainty in orders, impacting the price trend. Furthermore, inconsistency in consumer buying patterns led to the fluctuation in the prices of raw material Acetic Anhydride during the quarter, moving the Aspirin market. Thus, by the quarter ending June, prices of Aspirin API were assessed at USD 4680/MT in China.
Europe
In Europe, the prices of Aspirin API fluctuated during the second quarter of 2022, mirroring the price trend of the Asian market. Fundamentals of supply and demand, which regularly changed, were the leading cause of these swings. Additionally, during the whole quarter, fluctuations in trade frequency from China also affected the market value of Aspirin. The unstable offtake from downstream pharmaceuticals industries was one of the significant factors behind this flutter price trend of Aspirin. Altogether, mixed demand from end-user industries and the hovering inventories leading to a flared supply rate combinedly supported the market of Aspirin in Europe. Thus, the CFR prices of Aspirin API in Germany were settled at USD 6420/MT in June.
