For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Ibuprofen market in North America experienced notable price fluctuations influenced by several factors, resulting in a volatile pricing environment. The quarter concluded with Ibuprofen priced at USD 10,380/MT CFR New York, showing an average quarterly increase of 2.05%.
A significant driver of these price changes was the sustained demand from the downstream sector, prompting bulk orders and subsequent proactive price hikes by market participants. Geopolitical tensions and trade disruptions, such as disturbances in crucial shipping routes like the Red Sea and the Suez Canal, also played a role in the price volatility. These disruptions led to higher freight charges and logistical bottlenecks, further impacting pricing dynamics. North America's heavy reliance on Ibuprofen imports, particularly from China, was a notable factor influencing market trends. Fluctuations in Chinese production, including pauses during the Lunar New Year and Spring Festival, resulted in constrained shipments and limited US inventories, prompting market players to adjust their quotes to protect profit margins.
Towards the end of the quarter, Ibuprofen prices experienced a decline, though this shift did not significantly alter the overall trajectory. As the quarter ended, market participants engaged in inventory management practices to destock existing inventories, preparing for replenishment with fresh supplies. This strategic pricing adjustment aimed to optimize inventory levels and maintain liquidity within the market, creating a foundation for a more sustainable trading environment going forward.
Asia Pacific
In Q1 2024, the Ibuprofen market in the APAC region, notably in China, witnessed significant price fluctuations, displaying a mixed trajectory. Despite this, the overall pricing landscape showed positivity, with prices steadily rising throughout the quarter. By the quarter's end, Ibuprofen's price in China reached USD 10,000/MT (USP, FDA) FOB Shanghai, marking an average quarterly incline of 1.56%.
Early in the year, Ibuprofen prices in China experienced consistent declines due to reduced demand and surplus inventories resulting from year-end destocking efforts. Strategic inventory reductions and weakened downstream demand were primary factors behind this trend, exacerbated by decreasing prices of propionic acid and reduced orders from Western and Northern markets. Intensified competition among producers, stemming from oversupply, further pushed prices down. Additionally, normalized freight charges, previously inflated due to geopolitical issues, alleviated cost pressures, contributing to the price drop.
However, in February 2024, Ibuprofen prices surged significantly due to increased demand, low inventories, halted production during the Chinese Lunar New Year, rising freight charges, and currency depreciation. Post-holiday purchasing sprees and strategic currency utilization boosted market confidence, with suppliers adjusting prices accordingly. Increased propionic acid prices also supported Ibuprofen costs, highlighting the need for stakeholders to navigate uncertainties with strategic decisions amidst market fluctuations.
Europe
During the first quarter of 2024, Ibuprofen pricing in the European market, specifically CFR Hamburg in Germany, underwent fluctuations influenced by several factors. The quarter concluded with Ibuprofen priced at USD 10,125/MT, marking a modest average quarterly decline of 0.83%.
Despite this, the market generally experienced an upward price trend for Ibuprofen, mainly due to heightened demand from downstream sectors. This increased demand placed substantial pressure on prices. Moreover, global supply chain disruptions, particularly in the Red Sea region, caused shipment delays and extended lead times. These disruptions, combined with shortages of crucial goods and materials, contributed to the price surge. Currency fluctuations, notably the Euro's depreciation against the dollar, added another layer of complexity. The rising costs of imported materials denominated in USD affected traders and buyers, compelling them to accept goods at higher prices amidst escalating freight charges. Additionally, the increase in downstream sector demand, limited stock availability, and supply chain disruptions all played roles in driving prices up.
Market participants adjusted their pricing strategies to maximize profit margins, although prices did decrease towards the end of Q1 2024 due to improved product availability, easing concerns about supply shortages and exerting downward pressure on prices. Despite these developments, challenges persist due to low demand, sluggish purchasing activity, weakened consumer confidence, and decreased freight costs further influencing prices.
For the Quarter Ending December 2023
North America
The last quarter of 2023 posed significant challenges for the Ibuprofen market in North America, with three key factors influencing market dynamics and prices. On average, Ibuprofen prices in the USA decreased by 1.17% quarterly. As of the last week of November, Ibuprofen CFR New York values stood at USD 9500/MT, reflecting the decline in prices during the fourth quarter.
Firstly, global economic uncertainties, including concerns about inflation and a potential recession, prompted cautious investor behavior and a subsequent decline in stock prices, impacting the Ibuprofen market. Secondly, an imbalance between supply and demand resulted in an Ibuprofen surplus in the market. This surplus, coupled with reduced international demand, contributed to a decline in prices. Lastly, the United States, as an importing nation, followed the pricing trends of major exporting countries, further contributing to the decrease in Ibuprofen prices.
Despite this overall trend, prices experienced a significant increase in December. Ongoing geopolitical tensions had a cascading effect on global trade routes, leading to heightened freight charges. Longer voyages and disruptions in the Red Sea and Suez Canal increased freight costs. Recent incidents of ship attacks near the Suez Canal, coupled with persistent congestion in the Panama Canal, added complexity to the global supply chain. Additionally, a shortage of containers resulted from vessels not returning to Asia on time, leading to short-notice cancellations of sailings by ocean carriers due to ship diversions. These challenges in vital trade routes made transportation and shipment more cumbersome, exacerbating existing logistical issues and impacting Ibuprofen pricing.
Asia Pacific
The Ibuprofen pricing in the APAC region underwent notable fluctuations during the fourth quarter of 2023, influenced by various key factors. In the first two months the prices decreased and on the contrary in the last month the prices rose. Firstly, the market faced a challenging environment due to a consistently low to moderate demand for Ibuprofen throughout the quarter. Secondly, there were ample supply levels, and no significant plant shutdowns were reported during this period. The decrease in pricing could be attributed to diminished domestic and international demand, along with heightened competition among Ibuprofen producers. Furthermore, the average quarterly price of Ibuprofen in China decreased by 1.84%. Market players, grappling with surplus supplies, opted to destock their inventories at lower margins, contributing to a weakened and consolidated market situation. However, prices rebounded in December 2023, driven by an upswing in demand outlook.In summary, the Ibuprofen market in the APAC region demonstrated stability with minimal price fluctuations. The quarter concluded with an Ibuprofen (USP, FDA) (Suppliers) FOB Shanghai price of USD 21,500 per metric ton.
Europe
In the final quarter of 2023, the Ibuprofen market in Europe underwent various significant developments that had a downward impact on prices. As of the current quarter, the latest price of Ibuprofen (USP, FDA) CFR Hamburg in Germany stands at USD 9880/MT, reflecting an average quarterly decline of 0.59%. There were signs of a slowdown in the economic downturn in Germany, as the manufacturing and services sectors experienced a less severe decline compared to previous months. However, the overall market sentiment remained negative, resulting in a constrained market situation. Despite these challenges, the Ibuprofen market in Germany maintained a moderate supply, meeting a consistent albeit low demand. Regarding currency fluctuations, the Euro appreciated by 0.15% against the USD during the quarter. Additionally, in the initial two months, decreased demand and abundant supply among suppliers kept the market weak and consolidated. Faced with sufficient inventories, market players lowered their quotations to destock the built-in inventories. As the major importer, the European market mirrored the trajectory of exporting nations.In December 2023, the German market observed a significant surge in the prices of ibuprofen. With improved customer confidence, there was a noticeable increase in consumer purchases of ibuprofen, contributing to a surge in demand. This heightened demand exerted pressure on existing supply chains, causing a ripple effect on prices. The escalating global freight costs played a crucial role in influencing the market dynamics for ibuprofen in Germany.
For the Quarter Ending September 2023
North America
From July to September, the CFR New York prices for Ibuprofen rose from $10,290 per metric ton to $10,150 per metric ton, concluding the third quarter of 2023 on a positive note. This upward price movement indicated a clear preference for higher price levels and demonstrated an average quarterly increase of 0.14%. Throughout the quarter, the domestic market for this nutraceutical saw an upward trend, primarily driven by consistent demand for Ibuprofen across various end-user sectors. Importantly, limited to modest inventory levels compelled sellers to gradually raise their prices each month, playing a crucial role in supporting the optimistic price trend for Ibuprofen in the United States. Additionally, the cost of importing increased in the latter part of the quarter due to fluctuations in the exchange rate between the US dollar and the Yuan. While inflation showed a slight slowdown in the third quarter of 2023 due to significant changes in the US economy, market participants remained watchful due to the Federal Reserve's decision to raise interest rates. Starting in the first week of July, there was a noticeable surge in warehousing costs, warehouse utilization, and inventory expenses in the United States. Consequently, commodities like Ibuprofen saw price increases due to the rising expenses associated with inventory management and storage. In summary, it is likely that importing countries experienced a similar trajectory to exporting countries during this period.
Asia Pacific
In the third quarter of 2023, there was a notable uptick in the cost of Ibuprofen, as prices rose from $22,850 per metric ton in July to $22,765 per metric ton on a FOB Shanghai basis by September. This shift indicated a tendency toward higher prices, reflecting an average quarterly increase of 0.17%. China, the world's second-largest economy, experienced a slower growth rate than expected in the first half of 2023, and this trend continued into the latter part of the year, casting a negative shadow over the start of the third quarter. This was primarily due to worsening deflation, elevated youth unemployment, and weak foreign demand. Several factors contributed to the price surge of Ibuprofen in China during this quarter, but the most significant were the strengthening of the Chinese Yuan (RMB) relative to the US dollar and increased local demand from end-user businesses. The appreciating value of the Yuan and the weakening US dollar raised export expenses, impacting both domestic and international markets. The heightened demand and disruptions in the supply chain created an imbalance, leading to upward pressure on prices. Toward the end of September, just before the Golden Week holidays, there was a minor increase in both shipping and manufacturing costs due to a surge in demand and inquiries. Another contributing factor to the price hike was strategic bulk purchasing by market participants seeking to replenish their inventories. The increased demand prompted many buyers to accelerate their procurement of Ibuprofen, intensifying overall demand during the holiday season.
Europe
During the third quarter of 2023, the price of Ibuprofen followed a consistent trend, showing a slight rise from $1280 per metric ton in July to $1220 per metric ton CFR Hamburg in September. This pattern indicated a notable increase in prices, resulting in an average quarterly growth of 0.08%. In July, with things stabilizing and the economy showing signs of improvement, German Ibuprofen suppliers began placing substantial orders to replenish their inventories and meet the growing demand within the country. Nevertheless, as the third quarter commenced, experts in the industry noted that the German manufacturing sector still faced challenges. In response to increased inquiries from local companies, the import of Ibuprofen from Asia, particularly China, remained an attractive option throughout the quarter. The depreciation of the Euro played a significant role in the rising prices in Germany, as the strong US dollar compelled domestic businesses to pay higher prices for imported goods from China. On the economic front, persistent high inflation and the challenging manufacturing environment in Germany continued to hinder growth, leading market investors to maintain a cautious approach.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, ibuprofen prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. With unusually low purchases by the end-use industry, domestic suppliers have large amounts of ibuprofen in their warehouses, resulting in continuously 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 purchase the ibuprofen drug substance from Europe, which also contributed to the price drop. The price was valued at USD 10,110/CFR New York as of the end of Q2 2023, down an average of 9.06% quarterly. Falling fares also supported the downward trend. US imports are falling 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 further weighed on market trading fundamentals. Moreover, despite stagnating demand, retailers are facing bloating inventory ordered to meet increased demand and potential future shortages during the pandemic.
Asia
The market price of ibuprofen experienced a significant decline in the second quarter of 2023 due to weak domestic and international orders. The price was valued and acquired at 22,650 USD/MT FOB Shanghai as of the end of Q2 2023, down an average quarterly of 7.67%. Prices fell significantly in the second quarter. During the quarter, the PMI fell below 50 points, suggesting that the manufacturing sector was contracting. China's import and export activities were mixed. Exports decreased by 3.9% from the previous 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 surge in imports was driven by government efforts to revive the Chinese economy and boost domestic demand. China's slowdown in manufacturing activity and slowing service sector growth are the latest examples of difficulties in the uneven economic recovery after COVID-19. Meanwhile, the Chinese government has taken measures to cool the economy, such as raising interest rates and curbing the money supply. Furthermore, market sentiment remained subdued due to declining buyer hunger, slowing sales from downstream industries, and a lack of new inquiries from domestic and foreign suppliers. Some market participants have reduced inventories of ibuprofen APIs to reduce inventories and improve cash flow.
Europe
Market conditions for ibuprofen API showed a downward trend in the second quarter of 2023. Ibuprofen prices fell 9.04% on average over the quarter to 10060 USD/MT CFR in Hamburg. Ibuprofen prices in Germany were on a downward trend as demand from downstream sectors and imports from exporting countries such as China slowed. Market sentiment was further supported by improved trading activity. Tariffs between China and the West Coast of the United States recently reached pre-pandemic levels, greatly reducing congestion, which has also lowered sea freight prices, impacting overall market conditions. Germany's inflation rate fell to 7.4% in March 2023, according to a report from the Federal Statistical Office. Additionally, German consumers are experiencing falling energy costs, which may come as a surprise to those accustomed to rising energy costs. This decline in demand and the continued supply of generic drugs drove prices down. German consumers are increasingly choosing over-the-counter pain relievers over prescription drugs. This is due to several factors, including the convenience and low cost of OTC medicines.
For the Quarter Ending March 2023
North America
Ibuprofen displayed strong market dynamics with minimal fluctuation in the first quarter of 2023. With the start of Q1 2023, prices increased through the end of February, supported by sustained purchases from the pharmaceutical end-user industry and merchant stocks to meet demand. Also, the ease of trade disruption supported the Ibuprofen market trend from January. With an average quarterly inclination of 1.32%, the settlement price of Ibuprofen API was recorded at USD 14580/MT CFR in New York. The energy cost was also 19.1% higher in February than a year earlier. Also, better trade flow and simpler logistic charges compared to the prior quarter influenced the market situation positively. On the other hand, the prices dropped in the month of March, backed by enough inventories and low offtakes from the end-user sector.
Asia
Ibuprofen prices witnessed an increasing trajectory in the APAC region in the first quarter of 2023. After the Lunar New Year break, the Chinese pharmaceutical markets technically returned on a positive note with an increase in orders and shipments from both the domestic and the international market. After a week-long Lunar New Year break, Asian currencies, particularly the Chinese Yuan (RMB), rose in the month of January as Chinese markets resumed trade. As the market was reopened, factory and port operations resumed. Also, with the soaring offtake and increase in the no. of international orders, Ibuprofen prices increased in the Chinese market. At the termination of Q1 202, the settlement price of Ibuprofen API accessed at USD 14550/MT EXW Hebei with an average quarterly inclination of 1.56%.
Nonetheless, the prices stabilized at the termination of Q1 2023, as the strict Covid laws lifted, revitalizing the second-largest economy in the world. Also, the recovery of production quickened, along with the rising demand, and kept the market stable. Moreover, supply-chain conflicts greatly decreased, which improved trade with foreign nations.
Europe
In the first quarter of 2023, Ibuprofen showcased stable market dynamics with slight fluctuation. With the commencement of Q1 2023, the prices rose till the end of February, backed by consistent offtakes from the pharmaceutical end-user sector and inventories among the merchants to cater to the demand. Further, the ease in trade disruption reinforced January’s market trend of Ibuprofen. Also, the Euro currency apprenticed against the USD in the month of January, influencing the market sentiments. During the month of March, the settlement price of Ibuprofen API came down to USD 14880/MT CFR Hamburg with an average quarterly inclination of 0.42%. Moreover, by the termination of Q1 2023, the prices dropped by 1% as the inquiries remained feeble and the merchants had enough supplies.
For the Quarter Ending December 2022
North America
Ibuprofen API witnessed shifting market patterns in the North American region during the fourth quarter of 2022. Beginning with Q4 2022, prices were predicted to rise till the termination of the first month due to a high cost of manufacturing, numerous logistical problems, and rising inflation. Additionally, the market position was maintained well by rising transportation costs and port congestion at the major ports. Later with the commencement of the second month of Q4 2022, the prices drop down considerably till the end of Q4 2022 on the back, lowering inquiries, bearish demand from the downstream sector, softening inflation, and ease in the transportation and decreased freight charges. During the month of December, the settlement price of Ibuprofen API came down to USD 13810/MT CFR in New York.
Asia
Ibuprofen prices significantly dropped in the APAC area in the fourth quarter of 2022. Due to ongoing geopolitical unrest and production halts in several industrial facilities in the Asia-Pacific region, the price trend started to rise progressively in Q4 2022. Later, as Q4 2022's second month gets underway, prices start to fall abruptly as end-user sector demand declines. As production costs dropped on the domestic market, prices fell dramatically. Prices were also lowered to pre-pandemic levels. The Ibuprofen market remained weak due to adequate supplies and stockpiling among the merchants. During the month of December, the settlement price of Ibuprofen API came down to USD 13500/MT EXW Hebei.
Europe
Ibuprofen's market dynamics in Europe changed negatively due to a fall in demand, a cessation of inquiries from the pharmaceutical end-user sector, and surplus inventories among local retailers. Due to geopolitical unrest and port congestion, prices started to increase gradually in the first half of Q4 2022. Ibuprofen prices later started to drop at the beginning of the second month of Q4 2022 despite the uncertainties because of a dramatic drop in inquiries, abundant supply, and a consistent market attitude. Additionally, the weakening consumer attitude in December was further boosted by the approaching holidays and festival season. During the month of December, the settlement price of Ibuprofen API came down to USD 14520/MT CFR Hamburg.
For the Quarter Ending September 2022
North America
With the commencement of the third quarter of 2022, Ibuprofen showcased decreasing market sentiments in the North American region owing to improved and firm supply dynamics and lowering downstream demand. Downstream inquiries from the pharmaceutical and food industry have eased out since the conclusion of Q3 2022. At the end of Q3 2022, the prices continued to drop with feeble market sentiments. Furthermore, The Propionic Acid (prime material) prices in Q3 winded down owing to ease in the upstream energy prices, which affected the market of Ibuprofen. Towards the termination of Q3 2022, the prices were recorded to be USD 32330/tonne CFR Houston with a quarterly declination of 2.13%.
Asia
The Ibuprofen price showcased depreciating market sentiments during the APAC region's third quarter Q3 of 2022. At the onset of Q3 2022, the price trajectory witnessed a gradual increment, owing to stable raw material Propionic Acid prices, with the ongoing geopolitical tension and production halt in various manufacturing units in the Asian region. Regular Manufacturing costs with low-cost support prompted the price to be lower. From the commencement of the second month of Q3 2022, the prices showcased fluctuation towards the downside, with a significant drop in the values of Ibuprofen following the decrease in raw material prices and preliminary inquiries. Towards the termination of Q3 2022, the prices were recorded to be 29550/ton FOB Shanghai with a quarterly declination of 2.47%.
Europe
In the European region, the Ibuprofen market dynamics witnessed depreciation on the back of lower demand, inquiries setback from the downstream pharmaceutical industry, and enough supplies among the domestic merchants. At the onset of the first half of Q3 2022, prices increased marginally due to geopolitical conflicts followed by congestion of trade routes. Regardless of the tense trading atmosphere in the domestic market, Ibuprofen prices continued to showcase decreasing trajectory owing to lowering inquiries, sufficient inventories, and stable market sentiments. Towards the termination of Q3 2022, the prices were recorded to be USD 34250/MT with a quarterly declination of 1.62%.
For the Quarter Ending June 2022
North America
Ibuprofen API market price trajectory witnessed fluctuation in North America during the second quarter of Q2 of 2022 due to shaky demand from the pharmaceutical and biopharmaceutical sector. The Propionic Acid (prime material) prices in Q2 wind down owing to ease in the upstream energy prices, which affected the market of Ibuprofen. Towards the termination of the first half, the prices increased gradually. With the commencement of the second half of Q2 2022, the price escalated due to high freight costs amid surging crude prices. Also, supply chain disruption and stagnant production increased prices in the second half of Q2 2022. Towards the termination of Q2 2022, the prices were recorded to be USD 34550/ton CFR Houston with the quarterly inclination of 4.54%.
Asia
During the first quarter of Q2 2022, the Ibuprofen API market showed appreciated market sentiments in the Asia Pacific region. At the onset of first half of Q2 2022, Ibuprofen prices increased sharply owing to increased demand from downstream pharmaceutical industries. Also, insufficient supply and bearish inventories kept the ibuprofen market tight. Manufacturing costs with high-cost support prompted the price to be on the higher end. At the beginning of the second half of Q2 2022, the prices were recorded to incline further as the government announced a 10% increment in all pharma supplies. Towards the termination of Q2 2022, the prices were recorded to be USD 31880/ton FOB Shanghai with the quarterly inclination of 19%.
Europe
In Q2 of 2022, the Europe Ibuprofen API market showcased tight market sentiments. The supply-demand chain of Ibuprofen API was mainly influenced by the pandemic's resurgence of the third wave. At the onset of the first half of Q2 2022, the prices of Ibuprofen were recorded on the lower side owing to demand setback and enough supply. But slowly and gradually, the market started improving with increasing raw material benzene prices. Cost pressure from crude oil and gas prices increased due to the Russia-Ukraine conflict, indirectly affecting raw materials prices, and propelling the Ibuprofen market trend. At the onset of the Second half of Q2 2022, Ibuprofen showcased a price upsurge in regional and domestic markets. Towards the termination of Q2 2022, the prices were recorded to be USD 38720/MT with the quarterly inclination of 3.57%.
For the Quarter Ending March 2022
North America
Ibuprofen API trade market escalated in North America during the first quarter of 2022 due to an upsurge in demand from pharmaceutical and biopharmaceutical sector. The Propionic Acid (prime material) prices in Q1 strengthened due to gyration in the upstream energy cycle, which affected the market of Ibuprofen. Thus, North America dominated the sales market in the first quarter. The price escalation was due to high demand and freight costs amid surging crude prices. The use of Ibuprofen-based products in pain relief management has boosted the demand throughout the quarter. The increasing cases of orthopedic disorders, such as arthritis and osteoporosis, have contributed to the growth of the Ibuprofen market.
Asia- Pacific
During the first quarter of 2022, the Ibuprofen API market showed favorable behavior in the Asia Pacific region. The suppliers soared in production due to high demand and limited supply, which impacted the price trend. The value chain of Ibuprofen API plunged through IBU derivatives such as Ibuprofen Sodium, Ibuprofen-Lysinate, and Dex-Ibuprofen due to enhanced effectiveness amid high bioavailability. The market for Ibuprofen API remained highly dominated by Rheumatoid arthritis, which causes pain and inflammation in the joints of the body in aging and older adults, resulting in an increased demand for this anti-inflammatory drug. The Ibuprofen API market witnessed a high growth rate in this region as compared to others due to increasing healthcare expenses.
Europe
In Q1 of 2022, the Europe Ibuprofen API market showcased mixed sentiments. The supply-demand chain of Ibuprofen API was mainly influenced by the resurgence of the third wave of Covid-19. But slowly and gradually, with decreasing cases by the end of March, the market started improving. Cost pressure from crude oil and gas prices increased due to the Russia-Ukraine conflict, indirectly affected the prices of raw materials, which in turn propelled the market trend of Ibuprofen. Surging widespread of a diverse range of diseases such as chronic disorders and migraine among all age groups have driven the demand for Ibuprofen API.
