For the Quarter Ending June 2023
North America
The prices of Levocetirizine Dihydrochloride significantly declined by 9.44 percent in June from the levels noticed in April. The prices decreased due to several factors, such as surplus supply, lower APIs (Active pharmaceutical ingredients) prices, and decreased demand from domestic and foreign markets. China is the largest exporter of APIs to the United States. Due to the ease of COVID-19 restrictions, exports of levocetirizine dihydrochloride to the United States increased, increasing supply in the U.S. market and creating downward pressure on prices. In addition, inflation slowed in the second quarter due to the Federal Reserve's interest rate hikes, which subsequently reduced demand for Levocetirizine Dihydrochloride in the U.S. market, driving down prices. Additionally, the U.S. dollar appreciated against the Chinese yuan in June, making U.S. imports cheaper and increasing the availability of levocetirizine dihydrochloride, supporting the downtrend. Unfavorable market conditions persisted as market traders and suppliers were forced to cut prices to clear inventories due to weak end-user demand.
Asia Pacific
The prices of Levocetirizine Dihydrochloride declined by 7.89 percent in June compared to the levels seen in April. The factors responsible for this downward trend include ample supply and reduced demand from domestic as well as foreign markets. Chinese yuan weakened against the U.S. dollar, suggesting economic momentum in China remained on the weaker side, indicating a slowing down of the global economy, which added pressure on external demand from end-user industries. China's manufacturing PMI remained below 50 in the second quarter. According to the National Bureau of Statistics (NBS), PMI settled at 49 in June, compared to 48.8 in May and 49.2 in April, suggesting a contraction in manufacturing. This has slowed production due to weak consumer demand from the medical and pharmaceutical sectors, resulting in lower purchasing activity and fewer new orders, driving down the price of levocetirizine dihydrochloride. Meanwhile, the war in Ukraine continued to impact API supply chains, affecting exporting activity to other countries such as the U.S., leading to increased supplies in the Chinese market and resulting in a decline in levocetirizine dihydrochloride prices.
Europe
The prices of Levocetirizine Dihydrochloride decreased by 10.08 percent in June from the levels noticed in April. The factors responsible for this downward include weak purchasing activity and sufficient inventories in the German market. In Germany, the manufacturing PMI (Purchasing Managers' Index) has dropped to 41 in June 2023 from 43.2 in May and 44.5 in April, indicating the contraction in the manufacturing sector because of the aftermath of the COVID-19 pandemic. New orders have declined at a faster pace due to weakened demand from end consumers. The German economy has been hit by rising inflation and rising interest rates by European Central Bank, which has resulted in higher food and energy prices. This increased the cost of living and reduced consumer purchasing activity, further driving the downward trend in levocetirizine dihydrochloride prices. The appreciation of the euro against the U.S. dollar has made imports cheaper and has also increased the supply of levocetirizine dihydrochloride on the German market. This put downward pressure on the prices of levocetirizine dihydrochloride.
For the Quarter Ending March 2023
North America
Throughout the first quarter, the prices of Levocetirizine Di-Hydrochloride inclined in North America on account of a continuous surge in inquiries from the pharmaceutical and healthcare sectors. Moreover, Overall inflation eased with the start of 2023 and after a significant prolonged labor shortage, owing to which the businesses in the US increased employment in January, and wages rose. Following February, the prices continued to display a similar trend and were recorded at USD 658000/MT CFR Los Angeles. Towards the termination of Q1, as inquiries from the downstream sector continued to rise, Inventories for Levocetirizine Dihydrochloride API remained low among the market players, which compelled them to focus on raising their shelves.
APAC
In the APAC region, Levocetirizine Di-Hydrochloride prices, particularly in China, demonstrate an incremented trend throughout the first quarter of 2023. In the month of January, Levocetirizine Dihydrochloride prices inclined in China because of a significant surge in domestic and international inquiries. The values rose at the same rate as they depreciated in December. Ease in logistic charges and a continuous surge in demand further supported the positive price trend of Levocetirizine Di-hydrochloride during the month of February, and the costs noted during this month were assembled at USD 618500/MT FOB Shanghai in China. With the end of March, the prices remained in the northward direction, compelling the manufacturers to raise their production activity and procure their shelves with downstream Levocetirizine Di-hydrochloride stocks.
Europe
In the First quarter of 2023, the market for Levocetirizine Di-Hydrochloride in Europe followed a similar path to that in the Asia Pacific. The market trend began well until the end of March. During the month of February, the prices achieved an assembly price of USD 672000/MT CFR Hamburg in Germany. Compared to the previous quarter, the inquiries from the domestic market inclined at a steady rate. Market players further focused on building their inventories for Levocetirizine Dihydrochloride API to prevent their shortage. In addition to that, the trend for this API at the end of the first quarter was supported by higher trade flow and simpler logistic expenses when compared to the prior quarter.
Over the first half of the fourth quarter, Levocetirizine Di-Hydrochloride's price gradually increased in North America. The pharmaceutical industry's end-user demand kept Levocetirizine Di-Hydrochloride costs on the high end. Additionally, there was a steep decline in supply chain disruption in the six months leading up to November across several measures, including shipping costs, which further bolstered the Levocetirizine Di-Hydrochloride market's upward trend. However, at the beginning of December, they started to fall precipitously due to a major decrease in their offtakes. Prices for Levocetirizine Di-Hydrochloride declined when they were recorded at USD 648000 /MT CFR Los Angeles.
In the fourth quarter of 2022, Levocetirizine Di-Hydrochloride prices in Asia, particularly in China, sharply declined. However, prices remained good throughout the initial half of q4 due to strong downstream demand balanced with supplies among market participants. On the other hand, the ease with which the supply chain was disrupted in November compared to October, including the lower shipping costs, encouraged the traders and suppliers to increase orders and balance the demand side. With the year 2022 concluding, China's production activities started to notably decline after November due to an increase in COVID-19 instances, which caused a decline in trade momentum and a reduction in freight costs, both of which helped the Levocetirizine Di-Hydrochloride price trend. Overall, the Levocetirizine Di-Hydrochloride costs noted in the middle of the fourth were assembled at USD 604500/MT FOB Shanghai in China.
The Levocetirizine Di-Hydrochloride market in Europe followed a similar trajectory to that in Asia Pacific in the fourth quarter of 2022. Due to a rise in demand from the end-user pharmaceutical business, the market trend started off well up until November and reached an assembly price of USD 663990/MT CFR Hamburg in Germany. Until December, Levocetirizine Di-Hydrochloride pricing inquiries from the downstream industry remained sturdy, reinforcing the drug's weaker price trend because market participants had plenty of supply and little demand. Furthermore, fresher orders did not require by traders as suppliers had enough stocks with them to meet any immediate necessities.
