For the Quarter Ending December 2022
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.
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.
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
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.
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.
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.
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.
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.
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.