For the Quarter Ending December 2022
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.
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.
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
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.
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.
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.
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.
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.
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.