For the Quarter Ending June 2024
North America
During Q2 2024, the North American Aspirin market experienced a notable upward trajectory in pricing, driven by a confluence of significant factors that exerted upward pressure on market prices.
Firstly, an unanticipated surge in consumer confidence led to increased consumption of pharmaceutical products, further intensifying demand for Aspirin. This demand was bolstered by the early onset of the peak season, compelling suppliers to stockpile inventory in anticipation of potential market disruptions. Additionally, logistical challenges, particularly in the Red Sea region, adversely impacted shipping routes, resulting in delays and elevated transportation costs. These logistical constraints were compounded by increased sailing speeds to mitigate delays, which in turn raised fuel costs and charter rates.
Moreover, the specter of potential disruptions from geopolitical tensions prompted companies to brace themselves by augmenting their inventories, further straining supply chains. Focusing on the USA, which witnessed the most pronounced price changes, the overall trend showcased a robust increase in Aspirin prices, reflecting both seasonality and intensified demand.
Overall, the price escalation recorded a 1% increase from the previous quarter, underscoring the progressive pricing trend. The quarter culminated with a settlement price of USD 2840/MT for Aspirin (Acetylsalicylic Acid), signaling a positive pricing environment, marking Q2 2024 as a period characterized by significant price inflation and a bullish market sentiment.
APAC
In Q2 2024, the APAC region saw remarkable stability in Aspirin pricing, a testament to a well-balanced market environment. This stability was underpinned by a steady demand from both domestic and international markets, which kept prices relatively unchanged. Key factors contributing to this stability included consistent manufacturing output, moderate fluctuations in raw material costs, and higher transportation expenses. China, a significant player in this market, exhibited the most notable price changes within the region. The rise in demand was driven by growing market confidence, led to heightened consumer demand as consumers sought to purchase the medication before prices potentially rose further. Additionally, the devaluation of the Chinese yuan against the USD made exports more appealing to international buyers, thus increasing demand in overseas markets. Furthermore, the easing of tensions in the Middle East during the latter part of the month likely played a role in the surge in shipments and demand, as it created a more stable trading environment. While on the supply side, traders continued to grapple with insufficient inventories with respect to the inquiries arriving from the end-users. As a result, the Manufacturers responded to this heightened demand by ramping up their production levels, but despite their efforts, the supply could not match the pace of demand. Additionally, the increase in production costs, due to factors such as raw material costs and increased operational expenses, have hindered manufacturers' ability to scale up production further, contributing to the low supply. Compared to the previous quarter, the 1% price change highlights the sustained stability in the market. This period of stability in Aspirin pricing in the APAC region suggests a robust market environment, resilient to external shocks and capable of maintaining equilibrium through consistent production and demand patterns. The latest quarter-ending price for Aspirin (Acetylsalicylic Acid) in China was USD 2490/MT, affirming the stable sentiment prevalent throughout Q2 2024.
Europe
In Q2 2024, Aspirin prices in Europe experienced a notable upward trajectory, driven by a confluence of factors. The quarter was marked by heightened demand across the region, propelled by robust economic growth and unexpectedly strong consumer activity. Businesses, having previously scaled back inventories due to economic uncertainties, found themselves urgently restocking, further intensifying demand pressures. Compounding the scenario were significant logistical challenges, including severe port congestion in key Asian hubs and North European terminals, as well as geopolitical disruptions like the Red Sea crisis. The increase in shipping costs and delays exacerbated the supply constraints. Additionally, the cost of Salicylic acid, a critical raw material, surged, directly influencing the price of Aspirin. Focusing on Germany, the market saw the most pronounced price changes. The German economy's resurgence bolstered business confidence, leading to a sharp rise in demand for Aspirin. The accelerated depletion of inventories, driven by higher-than-expected consumer demand, added to the pricing pressure. Seasonality also played a role, with increased medical needs during transitional weather periods. The correlation between supply chain disruptions and price hikes was evident, as logistical bottlenecks led to increased operational costs. Compared to the same quarter last year, prices surged by a significant margin, highlighting the robust market dynamics. From the previous quarter, prices recorded a 3% increase overall, seeing a marked rise due to sustained demand and supply constraints. The latest quarter-ending price stood at USD 2725/MT of Aspirin (Acetylsalicylic Acid), underscoring a bullish pricing environment that remained positive throughout the quarter.
For the Quarter Ending March 2024
North America
During Q1 2024, the pricing dynamics of Aspirin in North America, particularly in the USA market, were influenced by various factors beyond the conventional top three influences. The overall trend in the market was characterized by a nuanced examination of the drivers behind price fluctuations. The market situation in the USA played a pivotal role in shaping the pricing landscape, with fluctuations in response to factors such as economic uncertainty, inflationary pressure, and seasonality.
At the start of the quarter, prices dropped to $2760 per MT as a result of economic uncertainty, leading consumers to be more cautious with their spending. Market dynamics were also affected by pharmaceutical firms stocking up inventory before the New Year. However, prices rebounded in the middle of the month due to factors such as constrained warehousing capacity, disruptions in vital maritime routes, and the influence of the spring festival in China. Nevertheless, prices dipped once more at the end of the quarter in March, driven by a downturn in business sentiment, inventory accumulation, and cost-saving measures implemented by pharmaceutical companies.
Overall, the pricing trend for Aspirin in Q1 2024 exhibited a mix of upward and downward movements, influenced by supply and demand dynamics, market sentiment, and external factors. Comparing the prices in Q1 2024 to the same quarter last year showed a decrease in prices, reflecting market fluctuations and changing economic conditions. The final quarter's price for Aspirin (Acetylsalicylic Acid) (USP, FDA) CFR Los Angeles in the USA was $2715 per MT.
Asia Pacific
In Q1 2024, the pricing dynamics of Aspirin in the APAC region were influenced by a multitude of factors beyond the conventional top three influences. The overall trend in pricing for Aspirin in China, where price fluctuations were most pronounced, was characterized by a decline in prices. This downward trend was driven by reduced inquiries and orders from key end-user industries such as healthcare and pharmaceuticals. The closure of numerous companies during the Spring Festival, a significant holiday period in China, led to a decrease in overall demand and an oversupply in the market. The manufacturing sector in China faced its fifth consecutive month of contraction, reflecting weak demand and posing challenges for the export-oriented manufacturing sector. Additionally, a global economic slowdown further reduced demand for Chinese goods abroad. The surplus supply of Aspirin can be attributed to existing inventory buildup, proactive inventory management by manufacturers, and disruptions in the global supply chain. On the demand side, sluggish consumer spending and cautious purchasing behavior due to economic uncertainties played a role in reducing demand for Aspirin. Compared to the same quarter last year, there was a decline in prices, reflecting the challenging market conditions. The final quarter's price for Aspirin (Acetylsalicylic Acid) (USP, FDA) FOB Shanghai in China was USD 2450/MT.
Europe
In the first quarter of 2024, the pricing trends of Aspirin in the European region were shaped by a multitude of factors. Throughout the quarter, prices experienced a decline, primarily driven by weakened consumer sentiments in downstream sectors, resulting in an oversupply situation within the domestic market. Additionally, there was a notable decrease in new orders, particularly within the domestic market, exacerbating the downward trend. This situation was further intensified by the anticipation of increased demand surrounding the Chinese lunar year, prompting market participants to increase their inventories, inadvertently leading to an oversupply scenario and subsequent price depreciation. Adding to the complexity of market dynamics, the decision of the central bank to maintain interest rates at current levels placed additional pressure on consumers, limiting their purchasing power and perpetuating a subdued demand environment. As the quarter progressed, prices continued to decline, attributed in part to the decrease in freight rates observed amidst the shipping industry's efforts to navigate tensions in the Red Sea region. This reduction in freight rates translated to lower transportation costs, consequently contributing to an overall reduction in the cost structure of pharmaceutical companies. The final price for Aspirin (Acetylsalicylic Acid) (USP, FDA) CFR Hamburg in Germany was USD 2600/MT.
For the Quarter Ending December 2023
North America
The Aspirin market in North America faced challenges during the fourth quarter of 2023. Initially, there was a significant decline in prices at the beginning of the quarter, followed by an increase in November, and then a decline again in December. Factors such as elevated interest rates, trading activities, and seasonal influences played a significant role in influencing market dynamics.
Focusing specifically on the United States, the pricing of Aspirin in the United States has decreased significantly in October, aligning with the subdued domestic demand and abundant inventories held by market merchants. The overall expansion of new orders was minimal, while the decline in new international sales continued. The strength of the dollar against foreign currencies led to more affordable imports, ensuring an ample supply in the domestic market in the USA and contributing to a further decrease in prices. Later, the prices increased, which was primarily driven by strong consumer spending and an uptick in consumer confidence, despite persistent higher interest rates. The decline in inflation and cheaper gas prices alleviated some of the burden of price increases for consumers, leading to an overall surge in demand and subsequently higher prices for Aspirin. However, prices declined again in December, attributed to weakened demand from downstream industries and an ample supply in the market.
In terms of price trends, the quarter saw a slight increase in prices compared to the previous quarter, but no significant changes compared to the same quarter of the previous year. The latest price for Aspirin (Acetylsalicylic Acid) in the USA at the end of the quarter was USD 2835/MT CFR Los Angeles.
APAC
In the APAC region during the fourth quarter of 2023, the pricing of Aspirin was influenced by several factors. Firstly, there was an overall positive market sentiment with indications of expanded supply and demand, improved logistics, higher purchasing quantities, and increased optimism among manufacturers. Secondly, the demand for Aspirin saw an upturn, driven by a rise in new orders from the domestic market as well as increased demand from the healthcare sector due to seasonal influences. Lastly, the prices of Aspirin were affected by the upward movement in Salicylic acid prices, a crucial raw material, driven by increased costs of upstream materials. In China, the prices of Aspirin rose by 3.47% in November compared to the previous month. This increase was supported by a rebound in manufacturing activities and an improvement in overall market demand. Additionally, the onset of the winter season led to heightened demand for Aspirin in treating cold and flu-like symptoms. The latest price of Aspirin (Acetylsalicylic Acid) (USP, FDA) FOB Shanghai in China for the current quarter is USD 2615/MT.
Europe
The fourth quarter of 2023 proved to be a challenging period for the Aspirin market in Europe. Several factors influenced the market dynamics and prices during this time. Firstly, the scarcity of available stock had a significant impact, leading to an increase in prices. Additionally, the elevated energy prices contributed to the rise in Aspirin prices, increasing transportation costs and overall business expenditures. Finally, increased demand from end-consumers further drove up the prices of Aspirin. In terms of specific countries, Germany experienced the most significant changes in Aspirin prices during this quarter. The market in Germany was affected by the same factors as the broader European market, including the scarcity of supply and higher energy prices. However, Germany also saw a notable decline in inflation, which positively influenced consumer purchasing power and contributed to the upward trend in Aspirin prices. Also, the month of December typically witnesses an escalation in seasonal illnesses such as influenza and the common cold, attributed to increased gatherings during the festive period, which also supported to increase overall demand and prices. In terms of price trends, the Aspirin price in Germany at the end of the fourth quarter of 2023 was USD 2935/MT.
For the Quarter Ending September 2023
North America
The pricing of Aspirin in the United States exhibited a varied trajectory during the third quarter. Prices originally rose by 1.44 percent in July owing to factors such as inventory replenishment, increased demand from end-user industries, and fewer imports from important exporting nations such as China. Consumer prices increased by 3.2 percent in July, rising company expenses and contributing to the increase in Aspirin prices. Prices declined 9.35 percent in August compared to July, owing to a drop in new orders and market consumption. Consumer prices jumped 3.7 percent in August, mainly primarily to increasing fuel costs. Inflationary pressures weighed on customer purchasing power, resulting in an abundant supply of Aspirin, which led to price reductions. However, prices increased 1.25 percent in September as a result of several political and economic issues. The variables driving this trend include consistent inflation, slow trading activity, and sustained demand from end-user industries. China has recently pushed to boost trade with Southeast Asian regional allies, despite escalating political tensions with the US, which has hampered exports to the US and kept Aspirin prices high.
Asia Pacific
Aspirin prices showed a mixed pattern in Chinese market throughout the third quarter. Prices rose 1.62 percent in July due to rising demand from domestic and international markets, as well as a lack of supply in the market. The manufacturing sector remained in the contraction zone but improved in July compared to previous scenario, reflecting the production efficiency of industrial sectors edged up slightly, owing to the expansion in market demand. Increased enquiries from domestic and overseas markets drove enterprises to raise their selling prices, which aided the upward trend. In August, Prices fell by 4.15 as a result of decreased end-user demand and an adequate supply on the market. The National Bureau of Statistics (NBS) reported that manufacturing activity declined in August for the fifth consecutive month while services sector activity slowed as consumers continued to restrict their spending. Furthermore, increased interest rates in key export regions contributed to a reduction in Aspirin demand in the international market, exacerbating the downward trend. However, prices rose by 1.33 percent in September with continuous surge in new orders, implying a growth in the demand for the manufacturing market.
Europe
The pricing trends of Aspirin in the German market exhibited a diverse array of patterns during the third quarter. Prices increased 1.64 percent in July as a consequence of increased demand from end users mixed with decreased inventories among merchants and suppliers. Furthermore, strong heat waves and heavy rains in France hampered transportation networks, resulting in delayed delivery periods to meet market demand, leading to an increase in Aspirin costs. Prices fell 8.36 percent in August due to ample supply among market providers and a drop in customer demand. Market retailers and service providers reported a decrease in new orders. Furthermore, rising interest rates and inflation affected consumer confidence, resulting in a decrease in demand for Aspirin in the domestic market. Despite this, prices grew 1.60 percent in September, indicating a rebound in consumer confidence in the French market. This current trend might be linked to a number of crucial variables, including a scarcity of accessible inventory, high energy prices, and increased end-user demand.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, US market Aspirin prices fell significantly due to sporadic fluctuations between supply and demand during the month. Abnormally low levels of purchase by the end-user industry have led domestic suppliers to stock large amounts of aspirin in warehouses, resulting in continued lower costs in the domestic market. The euro strengthened against the US dollar in the second quarter of 2023. This made it more expensive for US buyers to source Aspirin from Europe, contributing to the price drop. The price ended Q2 2023 at USD 3480/CFR Los Angeles, down an average of 7.64% per quarter. Falling fares also supported the downward trend. US imports fall as companies struggle to sell excess inventories. Import cargo volumes at major US container ports also fell. Geopolitics have always pushed importers to ship their goods through East Coast ports. In addition, weak demand and high inventories weighed on market trading fundamentals. Moreover, despite stagnating demand, retailers are facing inflation in ordered inventory to meet increased demand during the pandemic and possible shortages in the future.
Asia
Aspirin market prices fell significantly in the second quarter of 2023 due to weak domestic and international orders. This price was valued and bought at 3,080 USD/MT FOB Shanghai as of the end of Q3 2023, representing an average quarterly decline of 10.35%. During the quarter, the PMI fell below 50 points, suggesting that the manufacturing sector is contracting. China's import and export activities were mixed. China's retail and producer inflation remains subdued as consumer and industrial sectors struggle to recover from the pandemic. Exports decreased by 3.9% year-on-year, while imports increased by 1.9%. The decline in exports was due to the ongoing COVID-19 pandemic, the Russo-Ukrainian war, and the slowdown in the global economy. The import increase was driven by government efforts to revitalize the Chinese economy and boost domestic demand. China's slowdown in manufacturing activity and slowing service sector growth are recent examples of difficulties in the uneven economic recovery after COVID-19. Meanwhile, the Chinese government has taken steps to cool the economy, including raising interest rates and tightening the money supply. In addition, market sentiment continued to be subdued due to declining buyer demand, declining sales from downstream industries, and a lack of new inquiries from domestic and foreign suppliers. Some market participants are reducing inventories of aspirin to reduce inventories and improve cash flow.
Europe
Aspirin market conditions showed a downward trend in the second quarter of 2023. Aspirin prices in Hamburg fell by an average of 8.57% in the quarter to USD 3,355/MT CFR. German aspirin prices were trending downward as demand from the downstream sector slowed, and imports from exporting countries such as China slowed. Market sentiment was further supported by improved trading activity. Tariffs between China and the US West Coast have recently returned to pre-pandemic levels, significantly easing congestion, and as a result, sea freight prices have also fallen, impacting overall market conditions. According to a report from the Federal Statistical Office, Germany's inflation rate fell to 7.4% in March 2023. Additionally, German consumers are experiencing falling energy costs, which may surprise those accustomed to rising energy costs. This decline in demand and the continued supply of generics has driven down prices. German consumers are increasingly choosing over-the-counter pain relievers over prescription drugs. This is due to several factors, including OTC medicines' convenience and low cost.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Aspirin market witnessed a deprecating trajectory in the North American region. Prices were witnessed to be on the lower end throughout Q1 2023 because of weak domestic demand, according to market fundamentals. The fact that domestic retailers had ample inventories among themselves also influenced the market scenario negatively. The slowed Aspirin market, brought on by falling feed Salicylic Acid prices, also affected the production cost. At the end of the first quarter, Aspirin values were accessed at USD 4420/MT with an average quarterly declination of 6.83%.
Asia Pacific
The market prices for Aspirin relinquished significantly in the first quarter of 2023 as a result of a declined demand from the downstream food, pharmaceutical, and healthcare industries. The prices were accessed at USD 4275/MT FOB Shanghai with an average quarterly declination of 4.18%. The price trajectory for the feedstock Salicylic Acid also showed a sharp fall, which had a detrimental impact on the Aspirin market. Also, domestic merchants had to drop their quotations to clear stock because the demand from the domestic market was lower than usual, and the volume of orders was lower than typical from the international market too. Nonetheless, the prices were recorded to stabilize at the termination of Q1 2023, backed by static demand and enough inquiries from the overseas market.
Europe
In the first quarter of 2023, the prices for Aspirin in the European market showcased a depreciating trajectory. At the end of the first quarter of 2023, Aspirin values were accessed at USD 4390/MT CFR Hamburg with an average quarterly declination of 9.95%. The market fundamentals showed that Aspirin prices depreciated throughout the month of January due to Lackluster demand from the domestic market. The availability of sufficient inventories on the shelves of domestic merchants had combinedly impacted the market situation. Feedstock Salicylic Acid prices also influenced the production cost keeping the Aspirin market feeble. Moreover, the extreme depreciation in the freight charges also added to the feeble market situation.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the North American market witnessed seesaw sentiments for Aspirin due to fluctuating demand from downstream pharmaceutical industries. The prices of Aspirin in the US market surged until November and were assessed at USD 5705/MT but scaled down slightly to USD 5525/MT in December. Supply chain disruptions from a major exporting country, mainly China, were noted due to the Golden week vacation in the first week of October and later Covid restrictions. However, demand from downstream pharmaceutical industries has been strong owing to limited inventories, encouraging the trader's sentiment in the domestic market. By the end of the quarter, improvement in import frequencies from China led to adequate stock in the market, causing the value to be slightly lower. Also, a decrement was seen in the market dynamics due to weak demand and a dull purchasing mood ahead of the Christmas Holiday.
Asia- Pacific
In the Asia Pacific region, the Aspirin market revealed an assorted sentiment with price fluctuations during the entire fourth quarter of 2022. An increment in Aspirin's price trend was seen in the first half of Q4, with prices settling at USD 5080/MT in November. The halt in production activities during the Golden week vacations in the first week of October resulted in low inventories among domestic retailers, which in turn supported the pricing tendency in the market. Also, the lockdown in Shanghai with rising COVID cases continued to make exports of API unstable. However, the prices started to slip in the second half of Q4 as the downstream pharmaceutical industry's demand flickered with uncertainty in orders, impacting the price trend. Thus, by the quarter ending December, prices of Aspirin were estimated at USD 4880/MT in China.
Europe
During the fourth quarter of 2022, Aspirin witnessed mixed sentiments in Europe. Till November, Aspirin prices in the European market climbed to USD 6375/MT due to lower importing activities from China amidst the Golden week holiday and lockdown restrictions, causing limited inventories in the regional market. However, Aspirin prices in Germany settled at USD 6155/MT, with an immediate decline of 3.4% in December. The market fundamentals in Germany had been hampered by declining demand from the downstream pharmaceutical and nutraceutical sectors, which had caused a price drop. Additionally, domestic merchants had enough inventory to meet demand overall, which resulted in a negative trend by the conclusion of the quarter.
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.
For the Quarter Ending June 2022
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.
