For the Quarter Ending December 2022
In North America, Olmesartan Medoxomil's CFR Los Angeles price escalated from $676050/mt to $691015/mt in October and November of 2022 in the North America before dropping to $673405/mt in December. Due to China's Golden Week holiday, Olmesartan Medoxomil imports were halted during the first week of October. Given the substantial product inventories, domestic suppliers were able to meet the demand for most of the quarter, and up until this point, offtakes in the end-user industries continued to be above normal. The unanticipated increase in Covid cases in China caused a pattern shift in the market for Olmesartan Medoxomil in the second half of the quarter. However, when the economy expanded and the port backlog significantly decreased in November, the disrupted supply did progressively mend.
In the fourth quarter of 2022, Olmesartan Medoxomil prices in the Asia Pacific region demonstrated a negative market pattern. Between October and December, FOB Shanghai prices in China decreased from $638080/mt to $635850/mt. Due to the production facilities being closed for the one-week holiday, orders for Olmesartan Medoxomil for the Chinese API market slightly decreased during the first week of October. Domestic merchants encountered a variety of contradicting signals after the holidays and the market's reopening, which made it difficult for the players to keep up with the modest development seen in the downstream industries. The demand from end users was robust the entire quarter. Chinese Government authorities revived a few laws, making the zero-covid measures less controversial in response to complaints and mass protests in the nation.
During Q4 of 2022, Olmesartan Medoxomil's costs increased in the European region from $685080/mt to $710000/mt in October and November before dropping to $685400/mt in December. Because of the unanticipated rise in COVID cases in the latter weeks of quarter 4, which resulted in a major fall in international demand, domestic demand was higher in the first part of the quarter than it was in December. Germany's offtakes remained strong despite rising energy and raw material prices in the end-user industries.
For the Quarter Ending September 2022
Following a settlement of Olmesartan Medoxomil API CFR Houston pricing at USD 639128/mt in the US market in July, negotiations in North America went on until September before being resolved at USD 665026 per MT, demonstrating a rising tendency. Given that China's zero-covid regulation severely limited its distribution across the nation and that this commodity is mainly imported as a medical element, Retailers in the country had enough supply to meet all downstream demand. Some Chinese manufacturing facilities were forced to close in the second half of Q3 due to the heat wave and a power constraint, which had a negative effect on US trade. However, this increased tendency has been favorably reinforced this quarter by the robust end-user industry demand.
The third quarter of 2022 saw a dip in the domestic Olmesartan Medoxomil market trend in the APAC region as China's FOB Shanghai prices first fell to USD 622450 per MT in August before rebounding to USD 630175 per MT in September. The price chart for this product was significantly impacted by the weak demand in the pharmaceutical sector during the first half of the quarter. Significant suppliers, however, put off placing sizable orders because of unanticipated occurrences like the country's terrible weather and power outages. Later, in the second half, demand for the pharmaceutical business increased. When the markets resumed after the suspension, certain production facilities undertook maintenance, which also had a negative effect.
The third quarter of 2022 in Europe started with an uptick in CFR Hamburg discussions for Olmesartan Medoxomil API in Germany, whose values were initially assembled at USD 652910 per MT in July before later inclining further to USD 673960 per MT in September. The already bad economic situation in Europe was made even more difficult by the unrest in Russia and Ukraine and by the lockdown and port restrictions in China (a major supplier). Additionally, the offtakes from the end-user pharmaceutical sectors were weak in the first part of this quarter before picking up in the latter part.
Prices of Olmesartan Medoxomil API showcased a stable trend in the North American region, followed by market disruptions. Supply disruptions from the APAC region amid high transportation costs resulted in a shortage of inventories, impacting the price dynamics of Olmesartan Medoxomil in the USA. Hampered production activities due to the COVID-19 lockdown curbs in China caused disruptions in the supply chain between USA and China. Due to the shortage of containers, domestic downstream customers had trouble getting their hands on supplies. Stability in the downstream demand from the pharmaceutical industry and high inflation pressure on the enterprises kept costs steady in the second quarter of 2022. Towards the end of Q2 of 2022, Olmesartan Medoxomil prices were assessed at USD 739506/MT for CFR New York in June 2022.
The market for Olmesartan Medoxomil in the Asia-Pacific region opened with lowered prices due to the adequate availability of stock in the market. From May onwards, the prices of Olmesartan Medoxomil showcased a rise in the Indian domestic market. In India, the prices surged from INR 1556720/MT to INR 1857630/MT Ex-Vapi (India) from April to May. The factor which affected the price trend was the elevation in the demand and limited supply in the regional market. The Chinese authorities implemented another lockdown in Shanghai due to the COVID cases surge, which crippled the supply chain and supported the disturbance in the spot market in Q2. Towards the end of Q2 of 2022, Olmesartan Medoxomil prices were assessed at USD 664620/MT for FOB Shanghai in June 2022.
In the second quarter of 2022, the prices of Olmesartan Medoxomil API in the European region showed an upward price trajectory owing to the rise downstream pharmaceutical sector's demand for the product. Higher global crude oil values and surge in freight charges amid Russia-Ukraine tension made market players obtain offtakes by passing cost burden to the consumers in the domestic market with the price revisions to protect their profit margins. However, the crippled supply chain during the COVID lockdown curbs in China has also caused pressure on the Olmesartan Medoxomil API prices in the second quarter of 2022. Thus, Olmesartan Medoxomil prices settled at USD 846434/MT for CFR Hamburg in June 2022.