For the Quarter Ending June 2023
North America
In the second Quarter of 2023, due to the sporadic dynamics between supply and demand throughout this quarter, Paracetamol prices in the US market declined significantly during this month. Due to exceptionally low offtakes in the end-user industries, domestic suppliers have an abundance of Paracetamol in warehouses, which results in continually lowering costs in the home market. Furthermore, the prices of raw materials used to produce Paracetamol, such as 4-aminophenol, have fallen recently. This also contributed to the price drop. The prices were evaluated and accessed at USD 5030/CFR Houston at the termination of Q2 2023 with an average quarterly declination of 15.48%. Also, decreased freight charges further supported the downward trajectory. The U.S. import volume has fallen as businesses struggle to sell off their excessive inventories. The import cargo volume at the major U.S. container ports also dropped. All along, geopolitics is nudging importers to ship their goods through East Coast ports. Also, Sluggish demand and high inventory levels further hampered the market trading fundamentals. Moreover, while demand is stagnant, retailers faced bloated warehouse inventories that they ordered during the pandemic to cope with surging demand and future potential shortages.
Asia
The market prices of Paracetamol in the second quarter of 2023 witnessed a substantial abatement on the back of sluggish orders from both local and foreign markets. Throughout Q2, the prices witnessed a steep downturn. The prices were evaluated and accessed at USD 4810/MT Fob Shanghai at the termination of Q2 2023 with an average quarterly declination of 16.10%. Throughout the quarter, the PMI has fallen below the 50-point mark, which indicates that the manufacturing sector is contracting. The decline in manufacturing activity in China in April, along with a slower rate of service sector growth, is the most recent illustration of difficulties in the wake of the uneven post-Covid economic recovery. Meanwhile, The Chinese government has taken steps to cool the economy, such as raising interest rates and reducing the amount of money in circulation. Also, the degraded buyer’s appetite and sluggish offtake from downstream industries and no new inquiries from domestic and international suppliers kept the market sentiments feeble. Some market players were also destocking paracetamol API to reduce their inventory levels and improve their cash flow.
Europe
The market situation for Paracetamol API showcased a dwindling trajectory throughout the second quarter of 2023. The prices of Paracetamol were accessed at USD 4985/MT CFR Hamburg with an average quarterly declination of 16.80%. The prices of Paracetamol in Germany witnessed a depreciating trend as demand from the downstream sector and imports from exporting nations like China remained sluggish. Improved trade activity further supported the market sentiments. Also, ocean freight prices came down, with China-West Coast US rates recently hitting pre-pandemic levels and congestion eased significantly, which impacted the overall market situation. The Federal Statistics Office reports that in March 2023, the inflation rate in Germany decreased to 7.4%. Furthermore, German consumers experienced a decrease in energy costs, which may surprise those accustomed to growing energy costs. Prices decreased because of this reduction in demand as well as the ongoing supply of generic versions of the medication. Consumers in Germany are increasingly choosing over-the-counter (OTC) pain relievers over prescription medications. This is due to several factors, including the convenience of OTC medications and the lower cost. Meanwhile, The European Directorate for the Quality of Medicines & Healthcare (EDQM) has given IOL Chemicals and Pharmaceuticals (IOL) a Certificate of Eligibility (CEP) to export Paracetamol to the European market. This is a significant achievement for IOL, as it will allow the company to export its paracetamol products to a large and growing market.
For the Quarter Ending March 2023
North America
In the first Quarter of 2023, the prices of Paracetamol showcase an ascending trajectory owing to increased demand from the downstream pharmaceutical industry and ease in logistic issues. With the commencement of Q1 2023, the prices record highs backed by increased demand from the downstream sector and a lack of inventories among the market players. Also, after the New Year's festivities were done, market participants placed newer orders and increased the prices for leftover supplies in the domestic market. The prices were evaluated and accessed at USD 8375/MT CFR Houston at the termination of Q1 2023 with an average quarterly inclination of 3.72%. Later with the onset of the second half, the Paracetamol prices stabilized on the back of enough inventories and static demand. Moreover, low sea freight costs had an impact on the market for Paracetamol in the North American region.
Asia
The market prices of Paracetamol in the first quarter of 2023 witnessed a substantial augmentation on the back of the increase in orders and shipments from both local and international markets. The prices were evaluated and accessed at USD 8195/MT Fob Shanghai at the termination of Q1 2023 with an average quarterly inclination of 5.81%. With the commencement of Q1, the prices witnessed sudden proliferation. Nonetheless, the prices stabilized in the second half of Q1 of 2023. The resurgence of the pandemic and rise in Covid cases, which boosted demand for medication in the domestic market, influenced the market situation. Manufacturers increased the size of their manufacturing operations throughout the region as a result of declining logistics costs and growing worldwide demand. Also, abandoning the zero-Covid policy in the Chinese provinces to revive the economy further supported the trend.
Europe
The market situation for Paracetamol showcased inflation throughout the first Quarter of 2023. The prices of Paracetamol were accessed at USD 8610/MT CFR Hamburg with an average quarterly inclination of 4.40%. Due to increased demand from end-user businesses and moderate supply levels held by local suppliers, Paracetamol prices increased dramatically in January. The government recently established a rule requiring suppliers to keep six weeks' worth of inventory to minimize shortages leaving the market players with ample inventories. Also, the upsurged price trajectory in the exporting countries during the resurgence of the pandemic further influenced the European Paracetamol prices. The Paracetamol prices were recorded to showcase a stable inclination throughout February. With the sudden price increase back in the previous months, the market players decided to stabilize the market situation. Moreover, reduced inflation and improved trade flow kept the market situation stable in the latter months of Q1 2023.
In the fourth Quarter of 2022, the price of Paracetamol API showcased a descending trajectory owing to low to no demand from the downstream pharmaceutical industry and ease in logistic issues. Low freight charges on sea shipments influenced the market of Paracetamol API in the North American region. Ease in port congestion and resolved supply chain kept the market weak. With the rising inflation, customers were hesitant to place large orders forcing merchants to lower their quotations to raise inquiries. Reduced raw material phenol prices and low input costs had a detrimental impact on the price of Paracetamol API. The prices were evaluated and accessed at USD 7380/MT CFR Houston at the termination of Q4 2022 with an average quarterly declination of 8.97%.
In APAC, the price of Paracetamol API witnessed a substantial drop in the fourth quarter of 2022 on the back of decreasing demand from the downstream pharmaceutical sector. The prices were evaluated and accessed at USD 6875/MT Fob Shanghai at the termination of Q4 2022 with an average quarterly declination of 6.97%. The ministry also decided to roll down the prices of generic drugs in the Asian region to maintain availability and approachability among consumers. Also, the RMB currency appreciation (+3.16) against the USD also influenced the Paracetamol API market in the Asian region. Furthermore, the suppliers and domestic merchants also decide to rebound the prices to the pre-pandemic level to maintain a stable market. The raw material Phenol prices also showcased a declining trajectory globally that affected the Paracetamol API prices negatively with low input cost. Further, low demand and fewer inquiries from the international market kept the market situation weak.
The market situation for Paracetamol API showcased a deflation throughout the Fourth Quarter of 2022. The prices of Paracetamol API were accessed at USD 7740/MT CFR Hamburg with an average quarterly declination of 8.90%. With ease in the shipments and transportation activities, the market showcased feeble sentiments. Also, relief of the port congestion in the major ports of Europe continues to facilitate an unhindered supply chain keeping the market weak. Low input costs and decreased Phenol prices for raw materials had a negative effect on Paracetamol API prices. The resumption of in-house production in European countries also influenced the Paracetamol API market. Ease in inflation around the end of Q4 also maintained the feeble market trend.
