For the Quarter Ending December 2022
In the fourth quarter of 2022, North America's Diclofenac Sodium API market experienced fluctuations. Prices began to climb in Q4 2022 and continued to do so throughout the second month of the fourth quarter due to high manufacturing costs, numerous logistical issues, and rising inflation. The US inflation Soared to 8.2% in October 2022. Additionally contributing to the price fluctuation were rising transportation costs and port congestion at the major ports. However, Prices began to decline later in December due to weaker inflation (the US inflation rate was 7%, down from 8.2% in October) and decreased end-user sector demand as the holiday season approached. In December, the Diclofenac Sodium API settlement price fell to USD 14720/MT CFR in Houston.
The Diclofenac Sodium API market in the fourth quarter of 2022 in Asia Pacific was very volatile. Price increases were observed up until the second month of the quarter as a result of increased end-user sector demand, various logistical difficulties, and rising inflation. Both the 2.8% increase in China's consumer price index and the 0.9% increase in the producer price index (PPI) had an effect on the market. Investor confidence and the country's economic operations have both been significantly impacted by China's "Zero-Covid" policy to date. Due to growing production costs driven by rising energy prices as well as increased domestic production to meet demand from both domestic and international markets, the market remained competitive. Later in December, as domestic merchants had sufficient stock on hand, Diclofenac Sodium API prices did begin to decline. The market's ongoing decline was also influenced by the policies being relaxed and the weak downstream demand. In December, the settlement price for Diclofenac Sodium API fell to USD 13850/MT FOB Shanghai.
Prices for Diclofenac Sodium API in the fourth quarter of 2022 demonstrated turmoil across the European continent. In the first two months of Q4 2022, supply disruption and persistent port congestion in the European region led to price increases. Additionally, in October 2022, the annual inflation rate in Europe increased to 10.6% from 9.9% in September. Due to the impending Christmas season, retailers in Europe have decided to restock their inventories substantially. However, prices decreased dramatically in December on the back of a fall in inflation (The euro area annual inflation rate was 10.1%, down from 10.6% in October), relief from port congestion, a slight increase in existing inventories among the merchants, and a considerable decrease in the freight charges keeping the market at ease. The cost of Diclofenac Sodium API was USD 15060/MT CFR Hamburg toward the end of Q4 2022.
For the Quarter Ending September 2022
The market trend for Diclofenac sodium API experienced a decreasing trajectory in the third quarter of 2022, with CFR Houston values falling from USD 15500/mt to USD 13920/mt from July to September. Diclofenac Sodium was among the Active Pharmaceutical Ingredients (API) whose imports into the US were severely constrained due to China's zero-covid policy. Due to the heat wave and a power shortage, several Chinese industrial facilities were forced to shut down in the second half of Q3, which had a detrimental impact on US business. The nation's declining Demand was attributed to several issues by various industries and experts, including inflation, supply shortages, and the country's excessive loan rates. Towards the termination of Q3 2022, the recorded average quarterly declination was 2.19%.
In the third quarter of 2022, the APAC region's behavior on the Diclofenac sodium market fluctuated. At the beginning of Q3, prices were noted to remain stable on the higher end, with consistent Demand coming from the pharmaceutical industry's downstream sector. As the Demand from the downstream sectors declined, prices began to drop at the beginning of the second month of Q3. Additionally, the domestic suppliers and merchants were forced to quote lower prices to retain the margin because they had enough goods on hand and enough inventory. Further, it was noted that the costs of raw material sulfur and sodium sulfide were falling, which impacted the market for Diclofenac sodium. Towards the termination of Q3 2022, the prices accessed were USD 12980/MT with a quarterly declination of 2.33%.
In the third quarter of 2022, the prices of Diclofenac Sodium remained buoyant in the European market. The Demand for Diclofenac Sodium API-based drugs remained truncated on the back of lowering inquiries. A Regular Supply chain and enough stockpile amongst the domestic merchants and traders kept the market sentiments feeble. Also, rising inflation propelled the consumers to limit their Demand and eventually forced the suppliers and merchants to lower their quotations in the domestic market. Towards the termination of Q3 2022, the values accessed were USD 14990/MT with an average quarterly declination of 4.56%.
During the second quarter of 2022, Diclofenac Sodium prices surged in the North American region because of a supply shortage of the API with the manufacturers. The demand for Diclofenac Sodium remained active throughout the quarter governing the market sentiments of the product in the regional market. Vessels remained piled up at major ports of supplying countries like China, increasing the regional market's gap between supply and demand. The US market remained disrupted throughout the quarter as the country faced significant port congestion. Labour and vessel shortages in the regional market occasionally impacted the transportation of API with the drug-producing companies. Furthermore, inflation occurred in the market, consequently influencing the production cost of Diclofenac Sodium in the North American market. Towards the termination of Q2 2022 the values accessed were USD 14920/MT with the quarterly inclination of 2.26%.
In the Indian market, Diclofenac Sodium prices increased during the second quarter of 2022, owing to the increased demand from domestic and overseas players. As per market players, the inquiries remained stable during April, but the orders showcased skyrocketing trends in May and June. Towards the end of the quarter, the prices of Diclofenac Sodium rose as the demand from pharmaceutical drug manufacturers increased in the market. Production cost remained brisk as the API remained on the upper edge and energy cost in the regional market. These facets governed the market sentiments of Diclofenac Sodium in the Asia-Pacific region. Towards the termination of Q2 2022 the values accessed were USD 13940/MT with the quarterly inclination of 2.73%.
In the second quarter of 2022, the prices of Diclofenac Sodium remained buoyant in the European market. The demand for Diclofenac Sodium API-based drugs elevated as the number of manufacturers is less in the market when compared with the inquiries. Supply chain disruption occurred as China couldn't export the API because of constricted ports and container shortages. Commodity inflation happened in the market, leading to a hike in the Swiss Performance Index (SPI) and natural gas prices. These facets governed the market sentiments of Diclofenac Sodium in the European market. Firms struggled with capacity pressures as backlogs of work rose again and subsequently took on additional staff quickly. On the price front, cost burdens surged further, albeit with the rate of inflation retreating further from March's peak; and charges levied rose at a slightly reduced pace, but one that was nonetheless marked. Towards the termination of Q2 2022 the values accessed were USD 16620/MT with the average quarterly inclination of 0.73%.