For the Quarter Ending December 2022
The North American market for Omeprazole experienced fluctuating sentiment in the fourth quarter of 2022 due to varying demand from downstream pharmaceutical sectors. Omeprazole prices in the US market increased by 4.3% till November and were estimated at USD 158600/MT; however, prices marginally decreased to USD 155600/MT in December. There were supply chain interruptions from a major exporting country, primarily China, due to the Golden Week holiday in the early week of October and subsequent Covid limitations. Though, the orders from downstream pharmaceutical companies were high due to low stocks, which boosted trader confidence in the domestic market. By the conclusion of the quarter, improvement in import frequency from Chinese ports resulted in sufficient market supply, which caused the cost to be slightly lower. Additionally, the demand from the downstream pharmaceutical sector decelerated in December as buyers purchasing interest waned amid the year-end season and waiting for new supply.
In the Asia Pacific region, the Omeprazole market revealed an assorted sentiment with price fluctuations during the entire fourth quarter of 2022. An increment of 3.5% in Omeprazole's price trend was seen in the first half of Q4, with prices settling at USD 145080/MT in November. Limited supplies among local retailers because of the slowdown in manufacturing activities during the Golden Week holidays in the initial week of October stimulated the rising price trend in the market. Also, with an increase in COVID cases, some parts of the country moved into lockdown and continued to cause instability in API exports. Later, in December, the manufacturers slowed down their production and were mainly focused on selling off their stocks even at cheap rates due to the ongoing yearlong destocking season. Thus, by the quarter ending December, prices of Omeprazole were estimated at USD 143655/MT in China.
Omeprazole had oscillating market dynamics during the fourth quarter of 2022 in Europe. Omeprazole prices in the French market rose to USD 172500/MT till November due to reduced import activity from China over the Golden Week vacation and zero Covid-19 limitations, which resulted in low supplies in the local market. Omeprazole prices, however, fell 1.3% in December, settling at USD 170325/MT in France due to declining demand from the downstream pharmaceutical and nutraceutical sectors, which had impacted the French market's fundamentals and led to a price reduction. Domestic retailers also had adequate inventory to fulfill demand generally, which led to a downward trend towards the end of the quarter.
For the Quarter Ending September 2022
Due to growing demand from the North American end-user pharmaceutical industry, CFR Houston prices in the US market for Omeprazole API soared from USD 155900/MT in July to USD 160000/MT in August. Omeprazole API is mainly imported as an essential ingredient for finished drugs from China; however, zero-covid regulation severely limited its distribution to an overseas countries. Along with this, some Chinese industrial facilities were undergone maintenance because of the heat wave and a power deficit, which impacted trading activities. However, prices dropped in September and settled at USD 152000/MT as retailers in the country had enough inventory to meet all downstream demand due to a resume in trade and purchasing activities by the end of the quarter.
In the APAC region, the Omeprazole API price trend dipped in the first half of the third quarter of 2022. The FOB Shanghai prices for the product in China first fell to USD 138400 per MT in August before rebounding to USD 140100 per MT in September. The pharmaceutical sector's sluggish demand significantly impacted the price chart for this product during H1 of Q3. Significant suppliers, however, put off placing sizable orders because of unanticipated occurrences like the country's terrible weather and power outages. When the markets resumed after the suspension, certain production facilities undertook maintenance, which also had a negative effect. Later, in the second half, demand from the pharmaceutical business increased amidst limited stocks among domestic merchants.
The third quarter of 2022 in Europe commenced with an increase in CFR Le Havre negotiations for Omeprazole API in France. Europe's already difficult economic condition was made even more complicated by the unrest in Russia and Ukraine and by the lockdown and port restrictions in China (a major supplier). The prices were evaluated at USD 170000 per MT in August before falling to USD 162000 per MT in September. However, offtakes from the end-user pharmaceutical industry were weak at the start of the second half of the quarter and worsened in the latter weeks of September because of excessive inventories in the German domestic market.
The Omeprazole API market witnessed a stable trend in the North American region in the second quarter of 2022. The market was stable due to steady demand and surplus availability of inventories, impacting the price dynamics of Omeprazole in the region. Demand from the downstream pharmaceutical and other industries has declined throughout Q2 2022. Omeprazole is taken with an Antacid and belongs to the class of proton pump inhibitors for treating stomach-related infections. The upstream energy costs experienced fluctuation on the higher side due to route disruption and increased transportation charges, and the price stabilized owing to enough inventories and existing stock. Towards the end of Q2 of 2022, Omeprazole prices were assessed at USD 153400/MT for CFR Houston during June 2022.
During the second quarter of 2022, the Omeprazole market has declined in the Asia Pacific region amid stable demand fundamentals. Demand from the downstream pharmaceutical sector and other industries has eased throughout Q2 2022. Moreover, Rupee depletion against the dollar also impacted the price dynamics of Omeprazole in the second quarter of 2022. The prices increased owing to market fluctuations witnessed by the costs of Omeprazole. At the commencement of the first half of Q2 2022, the prices of Omeprazole surged with high demand and limited stock availability. Towards the end of the quarter, Omeprazole prices were recorded to follow a plunging trend with a total declination of 9.3%, and values settled at INR 3050350/MT for Ex-Vapi in June 2022.
Omeprazole market dynamics in the European region showed fluctuations on the back of geopolitical tension between European countries. With the stable demand from the downstream medical industry, such as stomach-related diseases, etc., prices surged in the first half of Q2 2022 due to geopolitical tension and supply disruptions from major Asian exporting countries. Also, the upstream energy prices exhibit slight flotation owing to increased freight charges and logistics shortages. At the onset of the second half of quarter 2, the trade routes showed relief, resulting in a recommencement in trading activities in the European market. Towards the end of Q2 of 2022, Omeprazole prices were assessed at USD 162400/MT for CFR Le Havre in June 2022.