For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Paracetamol market in North America underwent a notable decline, marked by fluctuating prices and various influencing factors. Starting with a quarter-ending price of USD 4150/MT in January, the market experienced a 5.40% average quarterly decline. This downturn was largely driven by the strategic actions of the USA, a major importer of Paracetamol. The USA adjusted pricing strategies to maintain global competitiveness, which had a ripple effect on the worldwide market, leading to price reductions.
Simultaneously, the North American market saw a decrease in raw material para-aminophenol costs due to weak demand projections, further impacting prices. Additionally, US manufacturing activity declined with significant drops in order volumes, contributing to reduced US para-aminophenol prices. Responding to an oversupply, downstream processing enterprises adjusted procurement strategies, further lowering prices. In February, significant price declines were witnessed, influenced by Chinese provinces reducing prices, allowing US market players to adjust strategies. The strength of the US dollar against other currencies has facilitated advantageous import opportunities, enabling US market participants to procure Paracetamol at reduced rates and in large quantities.
However, March saw an increase in prices due to hikes in exporting regions from post-lunar new year production resumptions, limited inventories, and heightened demand. This led US market players to resort to bulk orders, further driving up prices amidst inadequate inventories and delayed supplies.
Asia Pacific
In the first quarter of 2024, the pricing of Paracetamol in the APAC region experienced significant fluctuations due to various factors. The quarter concluded with Paracetamol FOB Shanghai, China, priced at USD 3950/MT, showing a 5.35% average quarterly decrease. This period was characterized by mostly negative trends in Paracetamol prices, influenced by reduced demand, oversupply, and lower raw material costs.
Overall, the demand for Paracetamol was moderate to low, leading to an excess of inventory among suppliers. This surplus, along with decreased purchasing activity, exerted downward pressure on prices. Seasonal patterns were significant, with a usual post-Lunar New Year surge in demand followed by a decline. Year-end destocking activities also impacted the market, resulting in weakened downstream demand and abundant inventories, further pressuring pricing. To respond, businesses adjusted by reducing inventory, resulting in lower procurement volumes and continued price declines. Manufacturers and suppliers had to navigate these challenges, facing threats to profitability amid falling Paracetamol prices and sluggish consumption in Western and Northern markets after the holiday season. In February, Chinese Paracetamol prices notably fell due to the Spring Festival and Lunar New Year, leading to decreased demand and oversupply in production.
Nevertheless, prices stabilized towards the end of Q1 as demand, consumer confidence, and purchasing activities increased. The market reopening after the Lunar New Year and Spring Festival holidays marked a resurgence in production activities and the introduction of fresh inventories. This often resulted in a price rebound as domestic demand surged and international off-takes increased to procure bulk inventories.
Europe:
Throughout the first quarter of 2024, the Paracetamol market in Europe experienced fluctuations influenced by various factors. Closing the quarter at USD 4050/MT CFR Hamburg in Germany, Paracetamol prices saw a 6.88% decline over the quarter.
This decrease was part of a broader market downturn characterized by lowered prices and a unified market sentiment, largely guided by Germany's strategic decisions. As a major importer, Germany's actions to maintain its global competitiveness, such as adjusting pricing strategies, had a ripple effect throughout the market. However, this was not the only factor driving market trends. The reduction in the cost of raw material para-aminophenol in Germany, due to weaker demand forecasts and decreased manufacturing activity in the Eurozone, also played a significant role. In response to these dynamics, market players adjusted pricing strategies and actively reduced inventories to avoid excess stockpiles. Despite these efforts, challenges emerged, including decreasing local inquiries complicating destocking efforts and export obstacles leading to order cancellations and delays. Reasonable factors and declines in domestic raw material prices further pressured Paracetamol prices, with discounted products saturating the market and reinforcing the downward trend.
In March, there was a price increase, partially attributed to Germany's role as a key importing hub and its close connections with major exporting nations. The resumption of production activities in these exporting countries, coupled with the easing of trade disruptions and the momentum in exports, provided some resilience to market players in importing nations.
For the Quarter Ending December 2023
North America
The final quarter of 2023 witnessed a blend of trends for Paracetamol in North America. Notably, there was a discernible rise in the price of paracetamol, attributed primarily to the sustained and consistent demand for the medication. Global trade routes were affected by ongoing geopolitical tensions, resulting in escalated freight charges. Disruptions in the Red Sea and the Suez Canal, in particular, hindered the smooth flow of goods, leading to additional costs across the supply chain. The United States, being a major importer, holds a key role in shaping market dynamics. The trajectory of paracetamol prices in the US closely mirrors those in exporting countries, causing a ripple effect globally and strengthening upward pressure on prices.
Recent attacks on ships near the Suez Canal and the persistent congestion in the Panama Canal have added complexity to the global supply chain. As these crucial trade routes face challenges, transportation and shipment become more cumbersome, worsening existing logistical issues and consequently impacting paracetamol pricing.
Market conditions showed improvement in November, with businesses expressing greater optimism and increasing investment expenditure. Despite uncertainties in the global economy, including concerns about rising inflation and a potential recession, the US market exhibited resilience, marked by a decrease in the unemployment rate and increased consumer confidence. However, there was a 3% price increase from the previous quarter. The latest settled prices of Paracetamol (USP, FDA) CFR Houston in USA at the quarter ending December 2023 was USD 4995/MT, with an average quarterly incline of 0.95%.
Asia Pacific
In the fourth quarter of 2023 (October to December) in the APAC region, Paracetamol pricing exhibited an upward trend influenced by several key factors. Initially, at the beginning of Q4, prices saw a decline as the supply of Paracetamol remained moderate to high, with ample inventories among suppliers meeting demand. It is noteworthy that the price of Paracetamol in China during Q4 2023 was USD 4775/MT FOB Shanghai, with an average quarterly increase of 0.11%. Notably, the market situation in China, which experienced significant pricing changes, improved during this quarter. The Chinese economy demonstrated resilience, supported by stimulus measures and robust export growth. Simultaneously, production costs decreased due to lower domestic market prices for the raw material para-aminophenol. Additionally, downstream demand for para-aminophenol was weak, with many traders adopting a wait-and-see attitude. Despite these initial trends, prices rebounded due to a notable increase in demand for Paracetamol from end-user industries, resulting in an uptick in prices. In terms of production, the cost pressure from upstream Para-aminophenol decreased, leading to stable manufacturing costs aimed at maintaining margins and returning to a sustainable trajectory. Consequently, suppliers quoted higher prices to achieve profit margins. Furthermore, the depreciation of the Chinese Yuan (CNY) against the USD in December contributed to an increase in commodity prices in the domestic market.
Europe
In the last quarter of 2023, the European Paracetamol market encountered various challenges that affected prices and market dynamics, demonstrating an upward trend throughout the quarter. Notably, the German market experienced a significant spike in Paracetamol prices, attributed to heightened demand from the downstream sector. The sudden increase in prices was a result of improved customer confidence, leading to an observable rise in consumer purchases of Paracetamol and subsequently driving up demand. The global escalation in freight costs played a pivotal role in shaping the market dynamics for Paracetamol in Germany. As a prominent importing region, Germany mirrored the pricing trajectory of major exporting countries. It is noteworthy that the price of Paracetamol (USP, FDA) CFR Hamburg during Q4 2023 was USD 5059/MT, with an average quarterly increase of 2.17%. Moreover, the optimistic market trend in December 2023 was reinforced by cost support from upstream raw material prices. The increased costs of raw material para-aminophenol contributed to higher overall production costs, providing manufacturers with a rationale to adjust their pricing strategies. Compounding the situation, market players grappled with insufficient inventories. In response, participants in the market chose to raise the prices of existing inventories, capitalizing on scarcity to maximize profit margins. Additionally, a key factor fueling this price inflation was the rise in seasonal demand. The arrival of winter months typically sees an increase in cold and cough infections, leading to higher demand for over-the-counter medicines like Paracetamol. In the broader pharmaceutical landscape, exports from the Asia-Pacific region were anticipated to face significant challenges due to tensions in the Red Sea and the Suez Canal. These challenges included delays in deliveries, route changes, contingency surcharges, increased freight costs, premium hikes, supply chain disruptions, and demand fluctuations. Indian pharmaceutical exports were expected to be particularly impacted by an increase in Contingency Surcharge (CAC) in shipping lines.
For the Quarter Ending September 2023
North America
The Paracetamol market in North America saw a substantial decrease in the third quarter of 2023. Between July and September 2023, the CFR Houston prices for Paracetamol fell from $4710 per metric ton to $4855 per metric ton, marking the end of the quarter. This price fluctuation clearly indicated a preference for lower prices, resulting in an average quarterly decline of 1.06%. During this period, the global Paracetamol market faced an oversupply issue, which led to a noticeable drop in market values. Additionally, domestic traders strategically accumulated significant Paracetamol inventories and, to mitigate potential losses, lowered their price quotes, further driving down overall market prices. While the third quarter did experience a modest slowdown in inflation, primarily due to significant economic changes in the United States, market participants remained vigilant due to the Federal Reserve's decision to increase interest rates. The decrease in Paracetamol prices can largely be attributed to a significant reduction in the cost of its primary raw material, Acetic anhydride, in exporting countries. This reduction significantly influenced the manufacturing cost of Paracetamol in those countries. However, in the middle of the third quarter, prices experienced a significant increase, primarily due to the volatility in the costs of the essential raw material, Acetic anhydride, in countries that export it. Furthermore, the North American market, a significant Paracetamol importer, and China, a prominent Paracetamol exporter, closely monitored pricing patterns in the Chinese market.
Asia Pacific
In the third quarter of 2023, the Paracetamol market experienced a notable shift, marked by a price decrease from $4505 per metric ton in July to $4760 per metric ton FOB Shanghai in September. This fluctuation highlighted a substantial change, resulting in an average quarterly drop of 0.23%. One significant contributing factor to this shift was the sharp decline in Paracetamol prices, primarily driven by a reduction in raw material costs, specifically in Acetic anhydride, within the domestic market. This price adjustment was influenced by the economic conditions, particularly in China, the world's second-largest economy. China had been going through an economic slowdown that extended from the first half of 2023 into the third quarter, affecting the Paracetamol market. This economic deceleration was the result of various factors, including increased deflation, a rise in youth unemployment, and weakened foreign demand. In terms of Paracetamol production in China, it closely followed customer demand and market dynamics. During this period, there was a noticeable decrease in demand, both domestically and internationally. However, starting in August, a surge in demand and disruptions in the supply chain led to imbalances, causing prices to rise. The steady demand for Paracetamol from both domestic and international markets, as well as new inquiries, contributed to this upward price trend. This was observed in the context of the current national and overall market conditions. In the weeks just before the Golden Week holidays in September, there was a slight increase in both freight and manufacturing due to heightened demand and inquiries. Another factor that pushed prices higher was strategic bulk orders from market participants looking to replenish their inventories. The increased demand during the holiday season led many buyers to accelerate their Paracetamol procurement, creating additional pressure on overall demand. Additionally, market players, noting the significant price drop at the beginning of Q3, sought to normalize the trajectory by the end of the quarter.
Europe
In the third quarter of 2023, there was a significant change in the pricing of Paracetamol. Prices dropped slightly from $4,685 per metric ton in July to $4,780 per metric ton CFR Hamburg by September. This decrease represented a notable price decline, resulting in an average quarterly reduction of 1.28%. This shift was mainly driven by a global oversupply of Paracetamol, which had a substantial impact on its market value. To address this situation and mitigate potential losses, domestic traders chose to accumulate large Paracetamol inventories and, strategically, lowered their price quotes, thereby contributing to a broader market devaluation. The significant decrease in Paracetamol prices can be attributed to a substantial reduction in the cost of its primary raw material, Acetic anhydride. This crucial change affected the overall manufacturing cost of Paracetamol in exporting countries, leading to lower prices. Consequently, this price decrease reflects broader global market dynamics. However, prices saw a noticeable increase in the middle of Q3 due to fluctuations in the prices of the raw material, Acetic anhydride, in exporting countries. In addition, the European market, a major Paracetamol importer, and China, a leading exporter, closely tracked the pricing trends of the Chinese market.
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.
For the Quarter Ending December 2022
North America
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%.
Asia
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.
Europe
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.
For the Quarter Ending September 2022
North America
In the third Quarter of 2022, the prices of Paracetamol API showcase a downward trend owing to firm demand from the downstream pharmaceutical industry and ease in logistic issues. Removing the lockdown in the exporting countries and production resumption kept the supply chain firm in the regional and overseas markets. At the onset of the first half of Q3 2022, the price increment by 10% also affected the Paracetamol API prices in the US market. After the second half's commencement, the inquiries dropped significantly, influencing the Paracetamol API demand in the domestic market. The prices decreased in the third quarter, with values accessed at USD 9950/ton CFR Houston, with an average quarterly decline of 1.66%.
Asia
In the third Quarter of 2022, the Paracetamol API values depreciated because of sluggish inquiries from the downstream pharmaceutical sector. The prices fixed at the end of Q3 2022 were USD 8550/tonne FOB Shanghai with an average quarterly decline of 4.56%. With the easing of the lockdown and resumption of production activities, the Paracetamol API market exhibited weak sentiments. Also, the lowered energy values, followed by reduced production costs and increased operating rates, affected the prices of Paracetamol API in the domestic market. China's financial capital Shanghai witnessed a firm supply chain in regional and overseas markets, and the destocking of existing inventories kept the market at ease.
Europe
The market prices of Paracetamol API showcased a dwindling effect throughout the third Quarter of 2022. Towards the end of Q3 2022, the Paracetamol API prices decreased significantly and were accessed at USD 10500/MT with an average quarterly declination of 4.61%. The domestic merchants were propelled to lower their quotations owing to strong demand for Paracetamol API by various Healthcare sectors during Q3 2022. Consistent production rate and operating cost kept the Paracetamol API market feeble throughout Q3 2022. With lowered shipment freights and tared resumption also kept the Paracetamol API market feeble.
For the Quarter Ending June 2022
North America
In the second Quarter of 2022, the prices of Paracetamol showcase an upward trend owing to increased demand from the downstream pharmaceutical industry and other logistic issues. The lockdown imposition and strict policies in exporting countries disrupted the supply chain in regional and overseas markets. At the onset of the first half of Q2 2022, the price increment by 10% also affected the paracetamol prices. Furthermore, the pandemic's resurgence prompted increased demand for analgesics such as Paracetamol. Also, the surging demand and increased operating cost prompted the prices to increase significantly. With shipment restrictions and route disruption, the prices were driven to increase throughout the second Quarter.
Asia
In the second Quarter of 2022, the prices of Paracetamol rose because of increased demand from the downstream pharmaceutical industry. The lockdown imposition in China's financial capital Shanghai disrupted the supply chain in regional and overseas markets. At the commencement of the second half of Q2 2022, the government-imposed policies stating price increment by 10%, which also affected paracetamol prices. Moreover, the pandemic initially created high demand for analgesics such as Paracetamol which further led to the surging demand and increased operating costs prompting the prices to increase significantly. Toward the termination of Q2 2022, the prices of Paracetamol were recorded to be USD 9860/ton Fob Shanghai with a quarterly inclination of 3.43%.
Europe
The market prices of Paracetamol during the end of the second Quarter of 2022 recorded to be stable due to stable demand, which lower the price value of Paracetamol. The enough supply and existing inventories kept the prices at ease. Also, firm demand for Paracetamol by various Healthcare sectors during the end of the march propelled domestic merchants to lower their quotations. Regular operating cost and production rate kept the paracetamol market feeble for the first two months. Towards the termination of Q2 2022, the paracetamol prices increased slightly and were accessed at USD10500/MT with the quarterly declination of 0.90%
For the Quarter Ending March 2022
North America
North America also witnessed continued rise in the price trend during the initial phase of quarter i.e., January due to the increased demand of downstream product. Beside that the import facilities, the reroute of shipment due to the Russia Ukraine conflict led to the delayed supplies in the international market. Moreover, the shortage of shipping containers increased the freight charge. Further, the phenol price show upsurge during the first quarter of 2022. Raw material demands from various importing companies led to gradual increase in the price trends. Furthermore, due to high prevalence of fever, headache contributed to the increased demand of Paracetamol in the region.
Asia Pacific
Paracetamol prices rose because of the lockdown imposed in China’s financial capital-Shanghai, due to the spread of COVID-19, which had affected Paracetamol. It disrupted the supply of raw materials to India (Himachal Pradesh), which is the biggest pharmaceutical hub in Asia, led to the doubling of the cost of the active pharmaceutical ingredient. Moreover, the pandemic initially created high demand for analgesics such as paracetamol which led to the restriction in export of drugs by local authorities thereby increasing the freight charges and maintaining of sufficient stock in their own country. Asia’s biggest pharmaceutical hub in Himachal Pradesh, imports about 65% of its required raw materials from China such as phenol, which has also faced problem in procurement of it due to the pandemic restrictions in China.
Europe
The market of paracetamol during the end of the first quarter increased due to the upsurge of phenol in the regional market which in turn increased the price value of paracetamol. However, due to the spread of pandemic in various health issues such as consistent fever, headache along with the chronic disease led to increased demand of paracetamol which had affected the import thereby escalating the freight charges. Besides geopolitical tension has led the crude prices to skyrocket, pressuring the Phenol price to increase. In addition, the spike in demand of paracetamol by various healthcare sectors during the ending of the march boosted the market.
