For the Quarter Ending June 2023
North America
The prices of Omeprazole in the US witnessed a decremented trajectory in the second quarter due to increased supply, decreased demand, and reduced APIs (Active pharmaceutical ingredients) prices. The price of Omeprazole decreased by 7.26% in June 2023, in contrast to the levels seen in April. The prices of US imports fell by 4.8% in May and 0.2% in June, causing the increased supply of APIs (Active Pharmaceutical Ingredients), including Omeprazole, in the US market. The consumer price index (CPI) rose 0.2 percent in June after rising 0.1 percent in May, indicating an accelerating pace of inflation that has led to higher prices for energy and food. The US government imposed federal taxes to bring down inflation, subsequently leading to decreased demand for Omeprazole in the market. This puts downward pressure on Omeprazole prices. The PMI (Purchasing Managers’ Index) also dropped to 46.3 in June compared to the beginning of the second quarter, explaining decreased purchasing activity from end consumers. As the demand is less in the market, the market players have reduced the prices of Omeprazole to clear their existing stock.
Asia Pacific
The prices of Omeprazole in China showed a downward trend in the second quarter. The price of Omeprazole decreased by 7.61% in June 2023, in contrast to the levels seen in April. There were several factors responsible for this downward trend, such as reduced demand from end consumers, increased supply in the market, and a lowering of trade activities. China’s official manufacturing Purchasing Managers’ Index (PMI) also declined to 49.0 in June from 49.2 in April, indicating a contraction of manufacturing activity in China. The Chinese factory activity slowed down due to weakened demand and a decline in an overall new order. Market participants have reduced the prices of Omeprazole to clear their inventories in order to maintain profit margins. The export of APIs to the international market also decreased due to fading COVID-19 pandemic and climate change in China that disrupted the supply chain and transport infrastructure, leading to an increased supply of Omeprazole in the Chinese domestic market. This put downward pressure on omeprazole prices.
Europe
The prices of Omeprazole declined significantly by 7.46 percent in June 2023 compared to levels noticed in April. The factors responsible for this declining trend include increased supply and decreased demand from downstream industries. The official Purchasing Managers’ Index (PMI) of France declined throughout the second quarter and settled at 46 in June 2023. This indicates the decline in purchasing activity and the drop in new orders from end consumers supporting the weakened demand for Omeprazole in the market. The shipping cost also decreased in the second quarter, which increased the supply of Omeprazole in the domestic market. Also, the ease of some of the protocols on the imports of generic medicines has increased the availability of generic versions of Omeprazole, leading to a further decrease in prices. Apart from that, Omeprazole APIs prices declined in exporting countries like India and China, leading to the decremented trend in Europe. In addition, the inflation rate decreased in the second quarter of Europe, further explaining the lower prices of Omeprazole in the market.
For the Quarter Ending March 2023
North America
Omeprazole market prices in the North American region display an upward trend in the first quarter of 2023. Prices increased at the beginning of Q1, which was fuelled by a sharp increase in downstream inquiries and a rise in demand from the food and pharmaceutical industries. Additionally, after the New Year's celebrations were over, market participants concentrated on placing new orders and raised the prices for the last of the domestic market's supplies. In addition, imports from China increased significantly, which further kept prices high. However, with the termination of Q1-2023, the prices went down stably owing to a decrease in inquiries from the domestic market coupled with sufficient stockpiles. With this, the prices of Omeprazole in the United States were settled at USD 161780/MT in the United States.
Asia
Omeprazole prices in the Asia Pacific region, particularly in China, have increased throughout the first quarter of 2023. An increase in inquiries from the domestic and international markets was attributed to this price trend. Due to the approaching CNY (Chinese New Year), manufacturers also increased their production capacity at the beginning of January. This was done to avoid shortages or delays in shipments and to stockpile their inventory to satisfy local demand. In addition, the Chinese markets maintained their optimism in line with the month-long improvement in trade activity and demand dynamics. The termination of Q1 2023 further showed a weaker price trend for Omeprazole due to a decrease in international inquiries to a level that resulted in higher stockpiles for merchants and shipments at the ports. With this, the prices for Omeprazole were recorded at USD 149650 /MT in China.
Europe
During the first quarter of 2023, Omeprazole prices in Europe followed the trend of the APAC region. Prices increased by the start of the first month of Q1 because of improved customer inquiries combined with low stock levels. The general market trend throughout Q1 was further influenced by a slowdown in inflation and eased trade activity. However, until the end of Q1, orders from end-user industries remained above average, supporting strong demand and encouraging traders and local retailers to keep their shelves stocked. However, the prices for Omeprazole declined in the German market in the month of March. With these figures, the price was noted at USD 172655/MT.
For the Quarter Ending December 2022
North America
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.
Asia- Pacific
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.
Europe
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.
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.
