For the Quarter Ending June 2023
North America
Prices for Carbamazepine began optimistically in the North American region but ended pessimistically in the second quarter of 2023. Prices for Carbamazepine kept up with the Indian market trend throughout the second quarter. The prices gradually increased from the previous month at the start of the second quarter and last until mid-Q2 or until May 2023. The rise in Carbamazepine prices was attributed to improved demand in the pharmaceutical and healthcare industries, which also benefited the retailers by allowing them to charge more for their goods. Additionally, the Consumer Price Index (CPI) in the US stepped up by 0.6% in May 2023 after increasing by 0.3% in April, adding to the optimistic market trend for Carbamazepine in the US. The energy index also grew by 3.9%. Prices for Carbamazepine sharply decreased as June approached despite strengthening CPI, which increased by 0.1% from May to June 2023. The retailers notice a sharp decline in local demand. In addition, many analysts and business leaders claimed that the US inflation rate was on the decline. However, according to the theory, there was still significant underlying inflation that was much higher than the Federal Reserve's target despite falling energy prices, and local suppliers of Carbamazepine had a sizable supply on hand that allowed them to meet the demand in their area.
Asia Pacific
As of Q2-2023, the prices of Carbamazepine, an Active Pharmaceutical Ingredient across the APAC region, demonstrated a descending pricing sentiment as the prices dropped inclined considerably throughout April and continued this trend depicting a positive demand outlook until the middle of q2 while the prices dropped considerably as Q2 ends, i.e., in June 2023. Carbamazepine consumption in the domestic market has increased as of April 2023, with inquiries surging at a moderate level both from the domestic and overseas markets. The manufacturing PMI, on the other hand, fell in April from 51.9 to 49.2, below the 50-point threshold that separates monthly growth from contraction, as market participants had enough inventory to satisfy the month's total demand. In May, the manufacturers began to replenish the shelves as the supply began to decline by stepping up production. The price trend for the month of May was supported by suppliers and merchants selling their finished goods for more money than usual. Also, he Is purchasing Managers' Index (PMI) in India increased to 58.7 in May 2023 from 57.2 in April 2023. The increase in the PMI was driven by strong growth in manufacturing and services activity. The RBI has additionally raised interest rates twice in 2023 to cool inflation. Following June, the PMI for India in June 2023 was 53.9, which is slightly below the reading of 54.0 in May 2023, with declining purchasing activity and lessened exporting momentum. With this, the prices of Carbamazepine were assembled at USD 68694.95/MT IP Ex-Vadodara.
Europe
The prices of Carbamazepine across the German market mimicked a similar market trajectory as that of the APAC region during the second quarter of 2023. With the commencement of Q2, the prices surged across the region and continued to remain on the upper side until the middle of Q2. This was supported by the easy availability of downstream Carbamazepine when compared to the prior month at lower prices than usual from exporting nations such as India, one of the significant exporters of Carbamazepine. However, as June approached, the prices went down steadily, maintaining a steady demand-supply balance within their region. Also, the price of raw materials used to produce this API has been falling in recent months. This has also aided in the price decline. Supply chains were negatively impacted by geopolitical tensions between Russia and Ukraine, which were made worse by higher energy prices. This had an impact on both consumers and businesses, which decreased economic activity. The rising cost of energy is another significant issue that the German economy is currently facing. Germany is a country that imports a lot of its energy, so rising energy costs are having an impact on both consumers and businesses.
