For the Quarter Ending March 2024
North America
The pricing dynamics of Valsartan in the North America region during Q1 2024 exhibited a nuanced interplay of various factors beyond the conventional top influences. Notably, the overall trend in pricing during the quarter was influenced by factors such as consumer confidence, inventory levels, warehousing capacity, disruptions in shipping routes, and the impending spring festival in China.
The prices of Valsartan experienced a gradual increase in January, driven by a resurgence in demand from downstream sectors and improved business sentiments. This positive trend continued into February, supported by consistent demand from end-user industries and anticipation of growth in overseas markets. The market outlook remained positive, although prices saw a slight decline in March due to a decrease in consumer sentiments and a focus on destocking excess inventories.
Looking at the broader context, the pricing trend for Valsartan in Q1 2024 exhibited a year-over-year increase compared to the same quarter last year, reflecting the impact of various market dynamics. However, it is worth noting that the pricing trend in Q1 2024 showed a decrease compared to the previous quarter of 2023. Finally, the final price for Valsartan (USP, FDA) CFR New York in the USA at the end of Q1 2024 was recorded at USD 93000 per MT.
Asia Pacific
During the first quarter of 2024, the pricing dynamics of Valsartan in the APAC region, particularly in China, showed a nuanced trend influenced by various factors. At the beginning of the year, there was a notable increase in demand from downstream sectors and a surge in export orders, leading to a modest uptick in prices in January. Market sentiment remained positive, supported by consistent demand from both domestic and international markets. Furthermore, prices continued to climb in February, driven primarily by limited inventories. The Spring Festival festivities resulted in the temporary closure or reduced operation of numerous factories, disrupting production activities and causing a shortage of supply in the market. However, prices began to decline towards the end of the quarter due to insufficient domestic demand and a lack of inquiries from overseas markets. Additionally, positive developments such as decreased input costs for manufacturers led to reduced production expenses, further influencing the pricing dynamics of Valsartan. Looking at the broader context, the pricing of Valsartan in the APAC region during Q1 2024 saw a year-over-year decrease compared to the same quarter last year. However, there was a slight increase in prices compared to the last quarter of 2023. In conclusion, the final quarter's price for Valsartan (USP, FDA) FOB Zhenjiang in China was USD 92000/MT.
Europe
During Q1 2024, the pricing trends of Valsartan in the European region were shaped by a variety of factors. At the outset of the year, prices remained stable as downstream industries maintained consistent operations, ensuring a steady demand for Valsartan. Manufacturers, benefiting from ample inventories and stable market demand, refrained from making significant price adjustments. However, prices experienced a moderate increase in February, driven by rising consumer demand, logistical challenges, and limited inventories within the domestic market. Interruptions in shipping and logistics, often associated with the Spring festival in China, led to delays and increased transportation costs. Consequently, these additional expenses were passed on to buyers, contributing to the upward trend in Valsartan prices.
Despite this, prices declined in April as the market struggled with persistently poor performance in new industrial orders, characterized by insufficient domestic demand juxtaposed against a relatively high backlog. The decision of the European Central Bank to maintain its key interest rate at a record high further impacted market dynamics. Furthermore, the overall supply of Valsartan remained sufficient, prompting market participants to adjust inventory levels by offering temporary discounts or implementing price reductions. In conclusion, the final quarter's price for Valsartan (USP, FDA) CFR Hamburg in Germany stood at USD 95500 per metric ton.
For the Quarter Ending December 2023
North America
In the North America region, the pricing of Valsartan in the fourth quarter of 2023 was influenced by several key factors. Firstly, there was a moderate increase in prices in October and November due to a surge in demand from end-consumers and limited inventories in the market. This was driven by an improvement in business activity and a moderation in inflation. Finally, in December, prices declined as demand weakened from both domestic and overseas markets.
In the United States, which experienced the most significant changes in Valsartan pricing, the market situation remained stable throughout the quarter. The prices increased initially due to the limited availability of goods persisted due to a surge in demand that surpassed the supply available in the market. Despite the persistent elevation in interest rates, a positive shift in US consumer confidence emerged following three consecutive monthly declines, playing a significant role in the upward price trend. However, consumer confidence saw a decline in December, primarily due to concerns about the economic outlook and expectations of prolonged high interest rates.
Despite these challenges, the U.S. economy displayed remarkable resilience, with positive developments observed in business activity and a slight easing of inflationary pressures. The price of Valsartan (USP, FDA) CFR New York in the USA for the current quarter is USD 97000 per MT.
APAC
In the fourth quarter of 2023 (Q4), the pricing of Valsartan in the APAC region was influenced by several factors. Firstly, the market for Valsartan experienced stability during this quarter, with moderate supply levels and high demand from end-user industries. However, the overall market sentiment remained cautious due to sluggish exports and geopolitical complexities. Additionally, the Chinese economy showed signs of finding stability, but external uncertainties and inadequate domestic demand posed challenges. In terms of specific country analysis, China had the most significant changes in Valsartan pricing during this quarter. The pricing trend in China showed a decrease of -45% compared to the same quarter last year, indicating a significant decline. There was no change in pricing between the current and previous quarter, suggesting a stable market. Furthermore, there was a -1% price decrease in the second half of the quarter compared to the first half. Overall, the pricing of Valsartan in the APAC region, particularly in China, was influenced by stable market conditions, moderate supply, and high demand from end-user industries. The latest price of Valsartan (USP, FDA) FOB Zhenjiang in China for the current quarter is USD 96000/MT.
Europe
In the fourth quarter of 2023, the pricing of Valsartan in Europe was influenced by several key factors. In Germany, the largest market for Valsartan in the region, the prices remained stable throughout the quarter. The country's economy showed signs of gradual stability, with improved conditions in the manufacturing sector. The decline in Germany's manufacturing sector showed signs of easing, raising optimism for a potentially milder recession. Additionally, consumer inflation in Germany decreased significantly, leading to an increase in consumer purchasing power and contributing to the stability of Valsartan prices. However, the market experienced a decline in prices in December, primarily due to rebound of inflation caused by rising food and energy prices, which placed a strain on consumers' purchasing power. This resulted in a weakened demand for Valsartan in the healthcare and pharmaceutical sectors. Moreover, the availability of Valsartan was abundant in the domestic market, as suppliers adjusted their prices to clear out excess inventory. The price of Valsartan (USP, FDA) CFR Hamburg in Germany for the fourth quarter of 2023 was USD 99500/MT.
For the Quarter Ending September 2023
North America
Valsartan prices demonstrated a mixed pattern in the US market throughout the third quarter. Prices fell by 8.49 percent in July due to a drop in new order inquiries and sales from end-user industries. According to the government's most recent inflation data, consumer prices increased 3.2% over the previous month in July. The hike came on the heels of a 3% annual increase in June, the lowest rate in more than two years. The Federal Reserve hiked its benchmark rate 11 times in July by 25 basis points in a bid to reduce inflation, which kept overall market demand on the low side. However, prices for Valsartan surged by 0.88% in August because of a shortage of supply amid rising demand from end-users. Also, disruptions in the global supply chain and high oil prices have also impacted the Valsartan market, contributing to the upward trajectory of prices. In September, new orders experienced their sixth consecutive month of decline, albeit at a moderate rate, resulting in a drop in Valsartan prices by 0.87%. Inflation remained high during this period, primarily due to increased gas and rental prices, placing additional strain on consumers.
Asia Pacific
Valsartan prices showcased a mixed pattern in the Chinese market throughout the third quarter. Valsartan prices increased further in July by 8.57% as the factory activity slowed down amid a decrease in downstream industry demand. In addition, the Chinese yuan strengthened against the US dollar, making Valsartan costlier in overseas markets and further decreasing foreign market demand for Valsartan. Market providers shifted their focus to destocking to reduce inventory and sustain profit margins. According to the data released by the National Bureau of Statistics (NBS) data, the official manufacturing purchasing managers' index (PMI) increased slightly to 49.7 in August from 49.3 in the previous month. The slight uptick in PMI suggests the pace of new orders and purchases picked up in August from the previous month, but at a moderate rate, which increased Valsartan's prices by 0.89%. China's central bank cut key interest rates amid economic concerns, boosting end-consumer demand in the domestic market. In September, the factory output and new orders continued to thrive in a prosperous domain. However, it is regrettable to note that the external demand has not shown the same level of strength, as the export orders index has contracted for the third consecutive month, leading to a decline in Valsartan prices by 0.88%
Europe
Valsartan prices showcased a mixed pattern in the Chinese market throughout the third quarter. Valsartan prices decreased in July by 8.29% due to the deteriorating business environment in Germany, which led to a sharp decrease in the number of new orders and market demand. The rising interest rate by the European Central Bank also contributed to the lower domestic demand. However, the prices for valsartan increased in August by 0.85% because of higher demand from the pharmaceutical and healthcare end-user markets. The import of valsartan also slowed down from major exporting countries such as China, which resulted in less supply in the market, leading to an increase in prices. Furthermore, disruptions in the global supply chain due to events such as trade disputes or natural disasters have impacted valsartan availability, contributing to the upward trajectory of prices. In September, the prices of Valsartan experienced a gradual decline of 0.85%, owing to a decrease in end-user demand and abundant supply in the market. This can be attributed to the persistent escalation of inflation, primarily fueled by surging food and energy costs, thereby exerting burdensome pressure on purchasing capabilities.
For the Quarter Ending June 2023
North America
The prices of Valsartan in the US witnessed a decremented trajectory in the second quarter due to increased supply, decreased demand, and weakening currency. A significant decrease of 19.70% is seen in June compared to levels noted in April. The US dollar weakened against the other currencies, which decreased the demand for Valsartan outside the US, causing the decreased prices. The CPI (Consumer Price Index) increased by 0.1 percent in May, indicating a rise in the inflation rate that led to high energy and oil prices. The US government imposed federal taxes to combat increased inflation, subsequently leading to decreased demand for Valsartan. Apart from this, the government relaxed COVID-19 regulations on the import of Valsartan amid fewer freight charges that increased the export of Valsartan from China, leading to the increased global supply of Valsartan in the market. Also, the production of Valsartan is decreased due to plant maintenance in recent months. However, the demand is less in the market, so the market players reduced the prices to clear their inventories.
Asia Pacific
The Valsartan prices in China demonstrated a decremented trend in the second quarter. A decrease of 16 percent was noticed in the prices of Valsartan in June 2023, contrasted with the levels seen in April. There are several factors responsible for this downward trend, such as reduced demand from consumers, surplus supply in the market, and a lowering of trade activities. The supply of Valsartan increased due to the lowering cost of raw materials that, further put downward pressure on Valsartan prices. Also, factors like the war in Ukraine and the increased inflation rate are all responsible for slowing down China's economy. The Chinese government has increased the interest rate and reduced the amount of money in circulation to decrease the demand in the market and maintain the economy of China, which further puts downward pressure on prices. Apart from that, factory production is slowed down in recent months due to humid conditions. Chinese suppliers and manufacturers reduced the prices of Valsartan amid less demand to clear their inventories so they can maintain profit margins.
Europe
In Germany, a significant decrease of 22.17% is seen in the Valsartan prices in the second quarter compared to the levels observed in April. The decrease in demand, oversupply, and geopolitical tension are some of the factors which were responsible for the downward trend of Valsartan prices. The supply of Valsartan has increased in Germany due to more production of Valsartan by manufacturers and increased imports from exporting countries. Market participants reduced the prices of Valsartan to clear their inventories and maintain their profit margin. The German government has relaxed guidelines on importing generic medicines that increased the availability of generic Valsartan in the market, leading to more supply of Valsartan. The inflation rate in Germany increased by 6.4 percent in June from 6.1 percent in May. The war in Ukraine that caused higher energy and food prices in Germany is the major factor responsible for the increased inflation rate. The German government has imposed taxes to lower the demand, further supporting the downward trend of Valsartan prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Valsartan showed improved market dynamics with minimal variation. Prices rose at the start of Q1 2023 and stayed up through the end of February thanks to merchant supplies to satisfy demand and ongoing purchases from the pharmaceutical end-user business. The market trend for Valsartan from January was also encouraged by how simple it was to interrupt trade. The settlement price of valsartan API was reported at USD 133050/MT CFR New York, with an average quarterly inclination of 1.32%. Additionally, the market position was favorably impacted by improved trade flow and simpler logistic charges than the previous quarter. On the other hand, prices decreased in March due to sufficient stocks, low-end-user sector offtakes, and a decrease in freight costs.
Asia
Valsartan prices witnessed a positive trajectory in the APAC region in the first quarter of 2023. The prices increased at the start of Q1 2023, supported by new production initiatives to meet demand from both domestic and global markets as market players were driven to restock their stockpiles as Q1 got underway. After the Lunar New Year break, the Chinese pharmaceutical markets technically returned on a positive note with an increase in orders and shipments from both the domestic and the international market. As the market was reopened, factory and port operations resumed. At the termination of Q1 2023, the settlement price of Valsartan API accessed at USD 128700/MT FOB Shanghai with an average quarterly inclination of 0.49%. Later at the termination of Q1, the prices depreciated in response to enough inventories and low inquiries from the domestic and international markets.
Europe
Valsartan displayed favorable market dynamics with little volatility in the first quarter of 2023. Due to merchant supply to meet demand and continued purchases from the pharmaceutical end-user sector, prices increased at the beginning of Q1 2023 and remained up until the end of February. The ease with which trade might be suspended contributed to the market trend for Valsartan that began in January. Valsartan API's settlement price was reported to be USD 140650/MT CFR New York, with a quarterly average inclination of 1.49%. The market position also benefited from an increase in trade flow and simpler logistic costs compared to the prior quarter. On the other hand, prices dropped in March as a result of ample supplies, offtakes from the low-end user sector, and lower freight costs.
For the Quarter Ending December 2022
North America
The US Valsartan market began the fourth quarter of 2022 on a down note. However, prices started to increase in mid-H1 and then started to decline again in the last weeks of the quarter. Thus, the fluctuating price trends can be attributed to a number of factors, such as the erratic supply of inventories on the domestic market and the inconsistent demand from the end-user pharmaceutical sector. Turbulence in logistical operations, piled-up cargo at the port, and zero-Covid regulations in China, the primary exporting country, all affected the Valsartan market. As a result, CFR New York Valsartan prices in December 2022 were settled at USD 127980/MT.
Asia- Pacific
Prices for Valsartan in the Asia-Pacific region increased for the first two months of Q4 2022 before starting to fall in early December. Valsartan prices in China increased by 14.3% between October 1 and November 30, 2022. China's industrial activity, a major driver of the nation's economic growth, started to decline as more COVID-19 incidents created disruptions. However, this resulted in a shortage of supplies among regional producers. Following that, prices of Valsartan started to drop in early December, being restrained by an increase in domestic inventory levels coupled with a decrease in global demand. A weak trade environment existed in the end-user pharmaceutical industry, and the entire product manufacturing was mostly driven by demand. Additionally, transport activities were restricted with the zero Covid-19 policy, and the unstable market dynamics drove down prices. Valsartan's price in China reached USD 127,000/MT FOB Zhenjiang.
Europe
Pricing for Valsartan in Q4 of 2022 followed the regional trend in North America. Prices for Valsartan initially decreased by 3.2% in October, rapidly increasing by 7.3% in November and finally leveling off at USD 135620/MT. Because the downstream pharmaceutical industry received few inquiries in October, market sentiments for Valsartan in the German domestic market were muted. However, a scarcity of supply from Asian countries amid Covid limitations was the reason for the spike in Valsartan pricing in the middle of the quarter. The rising rate of inflation in Europe and escalating economic concerns also impacted the product's overall cost. However, when Q4 ended, consumer spending in the German domestic market began to decline, which again constrained market dynamics, with prices evaluated at USD 134600/MT.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the North American market witnessed seesaw sentiments for Valsartan due to fluctuating demand from downstream pharmaceutical industries. The prices of Valsartan in the US market surged by 2.8% until August but scaled down slightly by 1.4% in September. Supply chain disruptions from a major exporting country were noted due to the lockdown in China, and a turnaround of factories for maintenance affected the price trend of Valsartan. However, demand from downstream pharmaceutical industries has been strong owing to limited inventories, encouraging the buyer's sentiment in the domestic market. By the end of the quarter, improvement in import frequencies from China led to adequate stock in the market, causing the value to be slightly lower. Thus, by the end of the quarter, CFR New York prices for Valsartan were assessed at USD 145000/MT.
Asia- Pacific
In the Asia Pacific region, the Valsartan market revealed an assorted sentiment with price fluctuations during the entire third quarter of 2022. An increment in Valsartan's prices was seen in July, but prices started to slip in the second half of Q3. The lockdown in Shanghai with rising COVID cases continued to make exports of API unstable. Trading activities in China remained disturbed, leading to stockpiling of Valsartan in the market. Also, the downstream pharmaceutical industry's demand flicker with uncertainty in orders, impacting the price trend. Thus, by the quarter ending September, prices of Valsartan were estimated at USD 118700/MT in China.
Europe
During the third quarter of 2022, Valsartan witnessed mixed sentiments in Europe. In July, Valsartan prices in the European market climbed to USD 160000/MT due to lower importing activities from China amidst lockdown restrictions, causing limited inventories in the regional market. However, Valsartan prices in Germany settled at USD 154000/MT, with an immediate decline of 3.8% in H2 of Q3. Decreasing demand from the downstream pharmaceutical and nutraceutical sectors had hindered the German market fundamentals resulting in a price plunge. Furthermore, in terms of inventories, the domestic merchants had sufficient stocks to cater to the overall demand, which caused a downward trend by the end of the quarter.
For the Quarter Ending June 2022
North America
The price trend for Valsartan API in the North American region followed an increasing path in the second quarter of 2022. Healthy downstream pharmaceutical demand with lessened supply and reduced stocks with the suppliers affected the cost of Valsartan API further. During the second quarter, the market was volatile also due to protracted port congestion and a disrupted supply chain from China. Also, the trading activities were disrupted from various exporting countries resulting in higher freight charges and rerouting activity, positively impacting the price of Valsartan API. Also, manufacturing costs have risen in tandem with rising energy costs because of the recent rise in crude oil prices. Towards the end of the quarter, Valsartan prices were assessed at USD 143000/MT for CFR New York in June 2022.
Asia- Pacific
During Q2 2022, the prices of Valsartan API experienced an upward price trajectory across the Asia Pacific region on the strength of consistent offtakes from the domestic market. Strong market sentiments were seen because of increased demand and the limited availability of Valsartan API in the downstream pharmaceutical industries. The supply chain for Valsartan, as well as a variety of other active pharmaceutical ingredients, was interrupted after Chinese authorities-imposed a lockdown in Shanghai, one of the country's key ports, further reinforcing the price trend across the country. In China, FOB prices in Shanghai inclined by 7.5% this quarter compared to the next quarter, with values evaluated at USD 119200/MT in June. Also, in the Indian domestic market, the price of Valsartan API for Ex-Ahmedabad witnessed an upward trend, with values assessed at INR 15200000/MT.
Europe
As it followed the same market pattern as the Asia Pacific, the price trend for Valsartan API in the European region jumped higher in the second quarter of 2022. The European Valsartan API market displayed positive sentiments because of the persistent demand from downstream pharmaceutical industries. The local market also faced a shortage of inventories due to a long break in the supply chain from Asian nations, notably China. Due to a lack of key starting materials supply and high input costs international market because of the peaking energy crisis, domestic European companies faced the burden of purchasing Valsartan API at somewhat higher pricing. By the end of the quarter, Valsartan prices settled at USD 154000/MT for CFR Hamburg during June 2022.
