For the Quarter Ending June 2023
North America
The prices of Oxcarbazepine ended the second quarter of 2023 on a bearish note across the whole North American region. At the beginning of q2, the weak price trend was attributed to sluggish demand and high stock levels, which considerably hampered the market trading fundamentals. Considering the supply, the domestic sale dropped, which was primarily dragged down by higher inflation. While on the demand front, newer inquiries from the regional market continued to remain weak. Owing to this, retailers consistently face bloated warehouse inventories that they ordered during the time of pandemic to cope with surging demand. Also, the imports of cargo at the port of North America continued to drop. In addition to that, despite strengthening CPI in various parts of the North American region, such as within the United States, where it increased by 0.1% from May to June 2023. The retailers notice no significant changes in local demand. This kept the overall market trajectory for Oxcarbazepine on the negative side. The traders and suppliers were further reluctant to place future orders as they were keenly focused on destocking their prior inventories owing to disrupted weather conditions throughout June.
Asia Pacific
Throughout the second quarter of 2023, the prices of Oxcarbazepine, an Active Pharmaceutical Ingredient, plummeted. Both the regional and overseas market demand continued its bearish market trajectory since the beginning of 2023. In April, the prices of Oxcarbazepine went down strongly when compared to the prior month. This significant dip in the prices was attributed to lower consumption of this API in the pharmaceutical and healthcare sectors which resulted in a higher stockpiling of the products in the warehouse. This feared the merchants owing to which they considerably focused on destocking these first. Moreover, as we move towards the mid of Q3, India's Purchasing Managers' Index (PMI) increased to 58.7 in May 2023 from 57.2 in April 2023. Still, the inquiries from the downstream sector continued to follow a weaker trend. However, as Q2 concludes, the prices of Oxcarbazepine witnessed in the Indian market were settled at USD 118145.57/MT IP Ex-Vadodara with a month-on-month decrement of 4.20 percent in June 2023. In addition, with India being a significant manufacturer, exports of goods from India decreased for the fifth consecutive month in June 2023. The persistent slowdown in important economies, such as North America and the EU, is primarily to blame for the decline in exports. Additionally, trade activities are being impacted by the twin problems of a slowdown and inflationary pressure in the major economies.
Europe
For the entirety of the second quarter of 2023, Oxcarbazepine prices decreased, similar to those in the United States. This ongoing decline in Oxcarbazepine pricing was supported by lower consumer spending, declining logistical costs, weaker downstream inquiries, and higher stored supplies that the merchants anticipated. Additionally, the decline in the value of the Euro relative to the USD during the month of May contributed to the negative market sentiment for Oxcarbazepine. Due to increasing inventory levels and a lack of a strong demand side, traders were hesitant to make additional orders. Additionally, the cost of the raw ingredients required to make this API has decreased recently. This has also contributed to the decrease in price. Geopolitical tensions between Russia and Ukraine, which were exacerbated by increasing oil costs, had a severe influence on supply chains. Because this had an effect on both consumers and businesses, economic activity declined. After May, as June got underway, prices stayed unfriendly due to supplies that remained in excess and heavy output from big manufacturers. The downstream businesses were compelled to offer Oxcarbazepine for less so that it might be consumed with the leftover goods.
