For the Quarter Ending December 2022
The fourth quarter of 2022 saw a significant drop in Rabeprazole API prices in North America, with CFR Los Angeles values falling by 5.8% from $108500/mt to $102150/mt from October to December. Due to a one-week holiday in China, a prominent exporter, imports of Rabeprazole were delayed the first week of October. Despite this, the US's downward pricing trend was sustained by the substantial stocks retained by domestic retailers and the low demand for Rabeprazole. The damaged supply chain did, however, begin to mend as the economy grew, and the port backlog significantly shrank in the second half of Q4.
During the fourth quarter of 2022, the price of Rabeprazole across the Asia Pacific region displayed a downward price trajectory. Between October and December, FOB Shanghai prices in China decreased from $88750/mt to $84250/mt. The first week of October saw a modest decline in Rabeprazole orders for China's API market due to the shutdown of production facilities for the Golden Week. After a one-week holiday and the market's reopening, domestic traders faced several conflicting signals that made it challenging for the players to keep up with the slow development seen in some downstream industries. Additionally, the weak demand for Rabeprazole kept the market moving downward. Government authorities altered their zero-covid restrictions in response to criticism and intense unhappiness in the nation, rendering it vulnerable in the second half of the fourth quarter of 2022.
The German market for Rabeprazole mimicked the same trend as that of North America and Asia. The CFR Hamburg prices were settled at $112000/mt and $108500/mt in October and December, respectively, demonstrating a downtrend. Offtakes were higher in the first half of the quarter than they were in December due to the unexpected increase in coronavirus infections, which led to a decline in international demand during the latter weeks of December. However, factors like COVID incidents and the conflict between Russia and Ukraine continued to have a negative impact on the economy as a whole. Germany's CPI also decreased at the conclusion of the year, along with the ease in supply chain issues.
For the Quarter Ending September 2022
During the third quarter of 2022, the Rabeprazole API market witnessed an upsurged pricing sentiment in the North American region. The market enhanced during the first half of Q3 2022 due to a stable increment in its downstream demand. Prices rose significantly following the mid of Q3 owing to the tightened supply and port congestion leading to the shortage of consignments. Furthermore, in terms of demand, the domestic merchants were left with fewer stocks which were insufficient to meet the rolled-up demand. With the termination of the third quarter, the prices shadowed a similar trend and were demonstrated at USD 106850/MT CFR Los Angeles.
In APAC Region, the values of Rabeprazole witnessed an incremented state throughout the third quarter on the back of continual increased downstream demand. With the onset of Q3 2022, the ease in trading momentum from China positively supported Rabeprazole's price trend. Towards the end of the third quarter's first half, Rabeprazole values inclined stably with the demand side balanced by the supply side. Moreover, the manufacturing process was relieved owing to slight ease in the COVID-19 pandemic, which further kept the market sentiments of Rabeprazole on the positive side. With this, the prices recorded for Rabeprazole in the Chinese market were settled at USD 87280/MT FOB Shanghai.
In the Europe Region, Rabeprazole API prices inclined during the third quarter of 2022. The market surged significantly in the first half of Q3 owing to the geopolitical conflicts between the Russia-Ukraine, during which the trade routes showed signs of congestion following a tense trade atmosphere in the region. Further, the increased demand and insufficient supplies with the domestic retailers propelled them to raise their stocks to meet the demand side, which in turn also positively supported Rabeprazole's price trends in Europe. With this towards the termination of Q3, the prices got settled at USD 110650/ MT CFR Hamburg with stabled inclination.
The North American region showcased a bearish price sentiment for Rabeprazole sodium API in the market during the second quarter of 2022. In the market, the price of the upstream derivative timoprazole dropped down, which caused the price of the rabeprazole sodium API to be reduced. Downstream demand decreases, resulting in lower customer interest and higher dealer inventory levels. There were sufficient stocks with the traders in the market that could further fulfill the overall local demand. Lower fuel prices due to lessened import and export activities decreased freight rates and accumulated shipments which collectively impacted the market and Rabeprazole sodium prices in the region overall.
In the APAC region, the market of Rabeprazole witnessed a downward trend in its prices during the Second Quarter of 2022, backed by reduced downstream demand from various end-user enterprises, resulting in stockpiled inventories with the suppliers in the market. The prices for upstream derivatives also went down, negatively affecting the Rabeprazole market. Further, India being the major exporter of Rabeprazole to various regions, reduced necessity resulted in lessened trading activities, leading to lesser freight charges, thereby affecting the overall cost of Rabeprazole in the areas. Whereas the market was stable at the start of the second quarter, the prices dropped down significantly towards the termination of the second quarter. The prices recorded for Rabeprazole were settled at INR 5050000/MT Ex-Mumbai.
During the Second Quarter, the prices for Rabeprazole observed bearish price trends in the European market backed by reduced trading activities due to the Russian invasion of Ukraine, which resulted in rerouting events and delayed shipment from various regions, majorly India being the major exporter of Rabeprazole API. The reduction in downstream demand from various pharmaceutical and biopharmaceutical industries negatively affected the cost of Rabeprazole API in the market. Further, reduced upstream derivative prices results in lowered downstream Rabeprazole API prices in the market. Manufacturers were forced to reduce the prices to manage the steady offtake of downstream API-based products in the domestic market.