For the Quarter Ending March 2024
North America
During Q1 2024, the pricing dynamics of Oxcarbazepine in North America displayed a general downward trend, albeit with a minor uptick at the quarter's outset. This trend was shaped by several factors, including an excess of inventory, reduced demand from downstream sectors, fluctuating trade momentum, and cautious procurement practices.
With market participants holding higher-than-normal stockpiles and downstream purchasing activity dwindling, suppliers focused on depleting existing inventories, leading to continued price declines. Concurrently, decreased manufacturing activity in the food and pharmaceutical industries, major consumers of Oxcarbazepine as a feed used in the formulation of pharmaceutical drugs for the treatment of severe diseases likely epilepsy and seizures, prompted merchants to prioritize destocking efforts and avoid additional storage expenses.
Overall, the sentiment for purchasing Oxcarbazepine remained subdued, culminating in a pessimistic close to the quarter. Initially, prices saw an uptick due to heightened demand from downstream sectors, driving bulk orders to replenish stocks. The United States, a significant importer of Oxcarbazepine, adjusted its pricing strategy to align with exporting regions, aiming to maintain competitiveness.
However, export challenges such as shipping reroutes to circumvent the Red Sea, escalated shipping costs, leading to order delays and cancellations. Elevated container freight rates exacerbated the situation, impacting maritime-dependent industries and resulting in higher import prices. Consequently, despite a modest increase in January, the pricing strategies adopted by the USA influenced the global Oxcarbazepine market, culminating in a price decrease throughout the quarter.
APAC
In the first quarter of 2024, the pricing pattern of Oxcarbazepine in the APAC region followed a predominantly downward trajectory, marked by slight fluctuations in January. Initially, there was a modest uptick in Oxcarbazepine prices, driven by increased demand in sectors such as pharmaceutical industries, over-the-counter stores, and other healthcare sectors. Moreover, logistical challenges intensified due to consistent increases in freight and transportation costs, exacerbating the imbalance between supply and demand and making procurement challenging for importers, resulting in a price rise as traders were accepting the goods at a higher cost within the region and across the international market. However, as the quarter progressed, prices saw a significant decline, influenced by factors like subdued demand, surplus inventory from the previous month, and sluggish trade activity both domestically and internationally. Furthermore, despite the expectations of increased demand for Indian exports done in the previous month, the anticipated uptick did not materialize, raising uncertainties about buyer behavior and market dynamics. Additionally, the depreciation of the Indian currencies against the USD played a significant role, strengthening market resilience and positively impacting price trends. Importing regions leveraged the weakened INR to adopt cost-effective procurement strategies, supporting an overall optimistic market sentiment. Nevertheless, despite these positive market sentiments the overall purchasing activity for Oxcarbazepine from the downstream and overseas markets remained on the lower side, demonstrating a weakened trade momentum. Overall, in Q1 2024, Oxcarbazepine experienced a negative pricing trend due to weak demand and excess supply with a modest increase observed in January, and the prices were recorded at USD 108894 /MT IP Ex-Vadodara, the trend reflected a downturn compared to the previous quarter.
Europe
In the first quarter of 2024, the Oxcarbazepine market in Europe underwent a primarily downward trend influenced by various factors. As a key importer, Germany strategically adjusted its pricing approach to align with global competitors, aiming to sustain competitiveness. This strategic maneuver had a ripple effect on the international market, resulting in a decline in prices. The Oxcarbazepine market demonstrated a delicate equilibrium between supply and demand, with sufficient inventories meeting overall needs but hindered by factors such as decreasing inflation, economic sluggishness, and geopolitical tensions, which raised freight expenses and caused hesitancy among buyers and traders to negotiate new prices.
However, in January, there was a marginal price uptick for Oxcarbazepine due to a balanced supply-demand scenario. End-user industries showed sight improvement in downstream consumption patterns, leading to sustained imports despite increased freight charges amid trade disruptions preceding the Red Sea dispute. Moreover, the Euro's depreciation against the dollar prompted suppliers to adjust regional pricing to maximize profits. Overall, the pricing landscape for Oxcarbazepine in Europe, particularly in Germany, experienced a negative trend in Q1 2024, characterized by a substantial price decline until late March, albeit with a modest rise observed in January.
For the Quarter Ending December 2023
North America
Over the course of the fourth quarter of 2023, the pricing trends of Oxcarbazepine API were intricately intertwined with the evolving market dynamics in the APAC region. In a broader sense, prices exhibited a discernibly positive trajectory, primarily attributed to the sustained and gradual escalation in downstream consumption within the region. This persistent upward trend was notably influenced by a subtle yet consistent increase in downstream purchasing sentiments. This uptick in sentiment was efficiently balanced by the available inventory levels of Oxcarbazepine within the local spot market.
This equilibrium played a pivotal role in ensuring that merchants were well-equipped to meet the burgeoning demands arising from the continuous surge in downstream consumption. The carefully managed alignment of supply and demand dynamics contributed significantly to the overall buoyancy in pricing trends. Furthermore, the trajectory of Oxcarbazepine prices in the United States closely mirrored that of exporting countries, creating a domino effect that resonated across the entire global market. This synchronicity fostered robust market sentiments, acting as a reinforcing factor that perpetuated the upward pressure on prices throughout the entirety of the last weeks of December 2023.
In addition to these market dynamics, recent disruptive incidents, such as ships being attacked near the Suez Canal and the ongoing congestion issues in the Panama Canal, introduced an additional layer of complexity to the intricately woven fabric of the global supply chain. The resultant shortage of containers, stemming from vessels unable to return to Asia in a timely manner and ocean carriers abruptly canceling sailings due to unforeseen ship diversions, has further compounded the challenges in transportation logistics. As these critical trade routes grapple with difficulties, the processes associated with transportation and shipment have become more intricate and cumbersome, exacerbating pre-existing logistical challenges and consequently influencing the pricing dynamics of Oxcarbazepine.
Asia Pacific
Across the Asia Pacific region primarily in India, the market outlook for Oxcarbazepine remained consistently positive throughout the entire fourth quarter, marking a sustained and upward trajectory in pricing. This notable price trend was primarily ascribed to the escalating demand for Oxcarbazepine-based medications driven by the commencement of the winter season in India, contributing to a heightened incidence of cardiovascular diseases in colder weather. The increased need for Oxcarbazepine, a crucial medication in preventing blood clots, played a pivotal role in driving the observed upward shift in prices. Furthermore, recognizing the impending holiday season, merchants strategically focused on restocking orders to preemptively mitigate the risk of potential shortages and delivery delays. This proactive approach aimed at ensuring an uninterrupted supply chain and meeting the heightened demand during the festive period. On the supply side, the rise in Oxcarbazepine prices had notable repercussions for consumers, especially those who rely on generic products. While some manufacturers absorbed the increased costs to maintain competitive pricing, others found it necessary to adjust the prices of their finished products. The evolving market conditions in December were further influenced by the escalating cost of freight and the depreciation of the Indian INR against the US dollar, contributing to a nuanced pricing landscape. Seizing the opportunity presented by lower rates, overseas traders engaged in strategic procurement practices, acquiring goods more favorably amidst the changing market dynamics. As the pharmaceutical market grapples with these multifaceted challenges and necessitates adjustments, the intricate interplay of global and domestic factors continues to actively shape the pricing and demand dynamics for Oxcarbazepine Bisulfate-based medications in the Indian market. This ongoing interplay highlights the resilience and adaptability of the pharmaceutical industry in response to dynamic market forces.
Europe
Throughout the fourth quarter of 2023 in the European region, the pricing trends of Oxcarbazepine closely mirrored those observed in other importing regions, notably North America. Prices maintained an upward trajectory until the final weeks of December 2023. The persistent increase in purchasing sentiments within the domestic market contributed to a notable rebound in Oxcarbazepine prices. Downstream panel factories strategically aligned their procurement activities with incoming inquiries, fostering heightened bidding and competitive offers among enterprises, thus influencing market dynamics. Moreover, businesses in the European region actively prioritized inventory restocking, marked by significant order placements during a period of consistently rising demand. This proactive approach contributed to the overall strength of the market throughout December 2023. Given Germany's status as an importing nation, Oxcarbazepine prices in the country closely followed the pricing trend observed in major exporting nations, resulting in an overarching increase in prices. The escalating global cost of freight played a crucial role in shaping the market dynamics for Oxcarbazepine further. Compounding the situation, market players grappled with insufficient inventories due to a surge in demand and disruptions in the supply chain. Faced with strained inventories, market participants responded by increasing the prices of existing stock, capitalizing on the scarcity to maximize profit margins. This intricate interplay of factors underscores the nuanced and dynamic nature of the Oxcarbazepine market in the European region during the specified period.
For the Quarter Ending September 2023
North America
The price of Oxcarbazepine API remained consistent in the US during the third quarter of 2023. Throughout the whole month of July, prices stayed on the negative side, but as Q3 drew near, the market saw a moderate increase in demand from the downstream healthcare sector. In order to meet the demands of all arriving customers, the merchants' local spot market inventory of Oxcarbazepine remains high even after taking stock levels into account. Until the last few weeks of August 2023, a lot of retailers have refrained from placing new orders from exporting nations due to the increases in shipping costs. Prices increased steadily as the third quarter came to an end in September 2023. On the demand side, manufacturers kept acquiring materials in response to orders, which produced a steady supply of Oxcarbazepine. Acetic acid prices, a raw material, are also rising, which is bolstering the trend. Furthermore, contributing to the increase in Oxcarbazepine prices through the end of September was the steadily rising cost of fuel and energy.
Asia Pacific
In the APAC region, particularly in the Indian market, the pricing of Oxcarbazepine API remained subdued during the month of July in the third quarter of 2023. The declining prices of essential raw material solvents like Acetic Acid, crucial in Oxcarbazepine production, contributed to the overall reduction in Oxcarbazepine prices. Furthermore, a persistent decrease in consumption from end-user healthcare and pharmaceutical industries kept the trade momentum on the downward side, resulting in a higher product accumulation. As of August 2023, suppliers shifted their focus to replenishing their inventories. Additionally, India's Purchasing Managers' Index (PMI) for August 2023 indicated a reading of 58.6 for the manufacturing sector and 60.1 for the services sector. Although the growth rates were slightly reduced compared to July, they still signified continued expansion in both sectors. Looking ahead to September, India's Consumer Price Index (CPI) reached 186.20 points, indicating a 5.90% increase compared to September 2022. This higher CPI underlined the relatively high inflation experienced in India in recent months. Additionally, the market's supply stayed steady, and manufacturing facilities were running at their regular pace. Additionally, until the end of September 2023, there was a constant stream of imports from overseas, including China, which contributed to sufficient stock levels in the market.
Europe
In the third quarter of 2023, the prices of Oxcarbazepine in the German market mirrored the APAC region's market trajectory. Since the start of Q3, that is, in July, prices have steadily declined, increasing the likelihood that merchants will have excess inventory and weakening demand. This is supported by the fact that the exporting countries' output increased as a result of the Oxcarbazepine API production in the previous month. As a result, there is now more Oxcarbazepine API available on the market, which has caused prices to decline globally in July and continued until the middle of the third quarter of 2023. But as September concludes, the market experiences a moderate uptick in the prices of Oxcarbazepine, resulting in a steady rise in inquiries while balancing the overall supply side. Market analysts point out that buyers were placing orders based on requirements because they anticipated a long-term growth rate and that Germany's high energy costs had caused a rise in market prices. In addition, purchasers in the eurozone now pay more for Oxcarbazepine API due to the euro's recent depreciation in value relative to the US dollar. This has also added to the price increase that occurred in September 2023.
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.
