For the Quarter Ending June 2025
North America
• The Valsartan Price Index in the USA showed mixed trends in Q2 2025: declining by 0.99% in April, rising sharply by 3.15% in May, then falling again by 1.05% in June.
• In April, the Product Spot Price softened due to high tariffs (145%) on Chinese imports, strategic frontloading of shipments, and inventory buildup leading to reduced new orders and price cuts to clear stock.
• The Product Production Cost Trend was affected by tariffs, but partial absorption of these costs by supply chain players helped limit price increases in April.
• May saw a significant surge in the Price Index driven by a 90-day tariff suspension on Chinese pharma imports, prompting large-scale procurement and freight capacity strain that increased landed costs.
• The freight logistics bottlenecks, including port congestion and equipment shortages, contributed to higher Valsartan Spot Prices and elevated Product Production Cost Trend in May.
• Demand surged in May as distributors and buyers front-loaded orders ahead of anticipated tariff reinstatements, supported by modest U.S. inflation (0.1%) and expectations of General Rate Increases (GRI).
• June reversed the trend with a declining Price Index, as buyers slowed purchasing due to tariff uncertainty, existing stockpiles, and easing ocean freight rates.
• The Product Demand Outlook weakened in June amid fragile U.S. business and consumer confidence, with usual seasonal demand upticks failing to appear early.
• Mid-year inventory normalization and destocking efforts by pharmaceutical distributors exerted downward pressure on prices during June.
• Price Forecast for July 2025 indicates continued price softness, as demand remains weak with buyers maintaining a cautious “wait and watch” stance, and excess inventory from June further widening the supply-demand gap.
APAC
• The Valsartan Price Index in China fell by 0.99% in April due to weak international demand and ongoing inventory pressure amid disrupted manufacturing and port congestion.
• China’s manufacturing sector contracted sharply in April with the PMI dropping to 49.0, reflecting a deep slowdown that pressured Valsartan production and export logistics.
• U.S. tariffs at 145% heavily dampened export demand, leading to cancellations and half-filled shipments; this forced sellers to offer steep discounts to clear high Valsartan stockpiles.
• Domestic consumption remained sluggish throughout April, compounding the weak Valsartan Demand Outlook and resulting in bearish market sentiment.
• In May, the Valsartan Price Index rebounded sharply by 3.13%, driven by surging international demand as U.S. buyers frontloaded orders ahead of the tariff reprieve expiry.
• Freight capacity tightened and shipping rates rose by 27%, accelerating distribution and firming up prices due to intense competition for container space.
• Exporters saw improved inventory turnover and boosted pricing power amid strong market momentum and narrowing supply.
• June saw a 1.15% decline in the Valsartan Price Index, pressured by overcapacity, falling freight costs, and subdued global demand as buyers delayed purchases expecting lower prices.
• China's Producer Price Index fell 3.6% YoY in June, signaling weak input costs and limited pricing power for Valsartan producers.
• Valsartan Spot Price in July is expected to remain under downward pressure as excess inventories persist and international buyers continue a cautious, “wait and watch” approach despite stable production levels.
Europe
• The Price Index for Valsartan in Germany declined by 0.99% in April, driven by oversupply caused by US tariffs rerouting shipments to Europe and pre-holiday stocking by buyers.
• April’s supply glut, combined with subdued demand, resulted in abundant inventories, pressuring the Product Spot Price downward.
• Logistics disruptions such as port congestion and labor shortages in April constrained demand further, prompting cautious procurement from pharmaceutical buyers.
• In May, the Price Index reversed course, rising sharply by 3.12% due to escalating congestion at Northern European ports and limited vessel capacity, tightening supply availability.
• Anticipation of June’s General Rate Increase (GRI) fueled increased procurement activity and boosted the Product Demand Outlook, encouraging buyers to secure cargo early.
• Shipping reconfigurations shifted capacity back to Trans-Pacific routes, easing European oversupply and supporting upward price momentum in May.
• June saw the Price Index ease by 0.99% amid elevated inventory levels and a more conservative procurement stance, with buyers focused on liquidating stock before mid-year.
• Persistent logistical bottlenecks in June did not translate into immediate freight cost hikes, as carriers postponed Peak Season Surcharges (PSS), contributing to softer pricing.
• The Product Production Cost Trend remained stable, with no significant input cost spikes noted despite ongoing port congestion.
• For July 2025, the Product Price Forecast indicates likely price declines as excess inventory from June continues, demand remains weak, and buyers maintain a wait-and-watch approach, reinforcing the existing supply-demand imbalance.
For the Quarter Ending March 2025
North America
In Q1 2025, Valsartan prices in the USA experienced moderate fluctuations due to various factors. January saw a price increase as U.S. importers rushed to stockpile in anticipation of a 10% tariff on Chinese goods and a potential strike by the International Longshoremen's Association (ILA), which created supply chain concerns. This was further exacerbated by the Chinese Lunar New Year and rising energy costs, contributing to higher operational expenses. However, the ILA strike was cancelled, limiting the impact on prices.
In February, prices declined as supply improved, thanks to higher manufacturing activity in China after the New Year and a decrease in shipping costs. Despite these factors, weak demand due to economic uncertainty and inflationary pressures led to reduced buying activity. In March, prices stabilized, rising slightly by 0.09%. This was largely due to frontloaded purchases in anticipation of new U.S. tariffs, including on Chinese goods, and expectations of further tariff measures.
The overall trend in Q1 2025 was characterized by a mix of cautious procurement, tariff-related uncertainty, and fluctuating supply-demand dynamics.
Asia Pacific
In Q1 2025, Valsartan prices in China experienced a slight upward trend due to a combination of supply constraints and steady demand. In January, prices rose as the pharmaceutical and healthcare sectors drove demand, compounded by a seasonal slowdown ahead of the Lunar New Year, which reduced manufacturing output. Anticipation of U.S. tariffs prompted a rush in exports, further tightening supply. In February, despite the Lunar New Year holiday disruptions, demand remained consistent, and inventory shortages persisted as production resumed slowly. The focus on international markets, especially in response to U.S. tariffs, exacerbated domestic supply constraints. As the month progressed, demand continued to be strong, and suppliers adjusted prices to reflect the limited supply. In March, prices increased marginally as the supply situation slowly improved but could not fully keep pace with growing demand. Domestic and foreign buyers anticipated further tariff actions, prompting early procurement, which added pressure to the already tight market. This combination of factors sustained a bullish market sentiment, with prices edging higher throughout Q1.
Europe
In Q1 2025, Valsartan prices in Germany exhibited notable fluctuations. January saw a moderate price increase due to improved business sentiment and strong demand from the healthcare sector. Optimism in the economic climate, coupled with early inventory restocking ahead of the Lunar New Year, placed upward pressure on prices. In February, prices declined as supply conditions improved, with favorable import conditions driven by a stronger Euro and reduced ocean freight rates. Early stockpiling reduced the need for new orders, while weak demand, fueled by political uncertainty, led suppliers to cut prices to maintain market share. March witnessed a slight price increase, supported by supply-side constraints from port congestion and labor unrest in key European logistics hubs. Renewed restocking activity from cautious buyers, along with improving sentiment in the pharmaceutical sector, helped lift prices. Additionally, a slight decline in Eurozone inflation bolstered confidence among purchasers, allowing suppliers to raise price offers. Overall, Q1 2025 showed a pattern of price increases followed by a decline, with logistical issues and demand fluctuations playing key roles.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, Valsartan prices in the United States exhibited significant fluctuations due to a mix of evolving market factors. In October, prices saw a slight increase, fueled by heightened demand as a result of the Federal Reserve's interest rate cuts, which boosted consumer confidence. However, disruptions in the supply chain—such as ongoing port congestion, labor strikes, and the looming threat of tariff hikes under President-elect Donald Trump—intensified pressure on the supply-demand equilibrium, driving prices higher.
By November, a shift occurred as demand began to cool, largely due to inflationary concerns and high interest rates. The U.S. dollar's strength helped reduce import costs, and the resolution of the International Longshoremen’s Association (ILA) strike alleviated some logistical challenges. With inventories remaining well-stocked, suppliers found room to lower their prices, offering some relief to buyers.
In December, the downward price trend continued, spurred by waning consumer confidence, a seasonal dip in demand, and proactive inventory accumulation ahead of expected strikes and the Chinese Lunar New Year. Increased inflation worries and tariff uncertainty led to a more cautious approach by purchasers, while the combination of a healthy supply and competitive pricing kept downward pressure on prices. In sum, Q4 2024 saw a period of price volatility for Valsartan, ultimately trending lower as the quarter came to a close.
Asia Pacific
During the fourth quarter of 2024, the Valsartan market in China experienced notable price fluctuations, shaped by a range of economic factors and market trends. In October, prices increased sightly, driven by a rebound in the country’s manufacturing sector, which was further supported by government stimulus measures. This recovery, combined with rising domestic and export demand fueled by monetary easing and a weakened yuan, boosted consumer confidence. As a result, increased external orders allowed suppliers to raise prices.
However, the situation shifted in November as the market faced an oversupply. High inventory levels, weak domestic demand, and subdued international orders, particularly from the U.S. and Europe, led to a reversal of the upward price trend. The decline in crude oil prices reduced production costs, prompting manufacturers to lower their prices in order to stay competitive in the market.
In December, the downward price movement continued as consumer demand remained lackluster, amid ongoing disinflationary pressures in China. Pharmaceutical companies and international buyers adjusted their procurement strategies, leading to weaker demand. Meanwhile, reduced foreign orders during the holiday season left suppliers with excess stock, prompting them to further cut prices in an effort to clear inventory before year-end. Overall, Q4 2024 witnessed a shift from an initial price increase to subsequent declines, driven by a mix of fluctuating demand and changing market conditions.
Europe
In the fourth quarter of 2024, Valsartan prices in Germany displayed a pattern of volatility. October saw a slight price increase, buoyed by an uptick in business sentiment fueled by hopes for economic recovery and the European Central Bank’s third interest rate reduction to 3.25%. This easing of monetary policy spurred spending and investment. At the same time, ongoing supply chain disruptions at Hamburg’s ports, combined with proactive inventory buildup, exerted additional upward pressure on prices.
By November, the market outlook shifted as demand from end-user sectors weakened, and inflationary pressures started to ease. A noticeable decline in consumer spending and retail activity, coupled with a 1.9% drop in energy costs, led to lower production expenses, allowing suppliers to lower their prices in a bid to remain competitive.
The downward trend continued into December, driven by persistent weak demand from major industries, cautious purchasing behavior due to ongoing inflation concerns, and rising import costs linked to the euro's depreciation. Increased inventory levels and year-end stock clearance efforts further pushed prices downward, while harsh winter weather disrupted logistics and further dampened consumer activity. In summary, Q4 2024 reflected a transition from early optimism to growing economic caution, resulting in a volatile yet generally declining pricing trend.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American market for Valsartan experienced a varied trajectory, with initial price increases giving way to declines as the quarter progressed. Prices rose in July, driven by several influential factors. Notably, improved consumer optimism regarding business conditions fostered a positive outlook that supported higher Valsartan prices. Additionally, supply chain disruptions due to blank sailings, resulting from ships being rerouted around the Cape of Good Hope (COGH) because of severe port congestion in both Asia and North America, also contributed to the initial price uptick.
However, the landscape shifted dramatically in August and September, with a significant drop in demand occurring at the fastest rate seen in recent months. In response to this declining demand, many market participants began reducing prices in an effort to stimulate sales, further propelling the downward trend for Valsartan. Compounding these challenges was a notable decrease in inflation, primarily driven by falling energy prices, which eased business overhead costs. This environment allowed companies to lower prices for consumers, contributing to the overall downward movement in Valsartan costs.
In the USA, the market experienced the most pronounced price fluctuations. By the end of the quarter, the price for Valsartan (USP, FDA) CFR New York settled at USD 84,780 per metric ton, highlighting the substantial shifts that characterized the market dynamics throughout Q3.
Asia Pacific
In Q3 2024, the APAC region experienced a fluctuating trend in Valsartan pricing, characterized by initial increases followed by notable declines. Early in the quarter, prices rose due to a combination of factors, primarily driven by robust global demand. This surge was particularly influenced by strong export activities from Asia to major markets such as North America and Europe. Foreign importers adopted precautionary measures, placing larger orders to mitigate the risk of potential shortages, which further fueled the upward price momentum. However, as the quarter progressed into August and September, Valsartan prices began to decline significantly. This downturn was largely attributed to weakening demand, highlighted by a sluggish pace of exports and falling prices that signaled a broader loss of economic momentum across the region. The situation was exacerbated by the implementation of anti-dumping measures by major markets, including the USA, Europe, and India, which negatively affected overall demand for Valsartan in the region. By the end of the quarter, Valsartan was priced at USD 83,000 per metric ton FOB Zhenjiang in China, reflecting the shifts in market dynamics and the challenges faced in sustaining price levels amid changing demand conditions and regulatory influences.
Europe
Throughout Q3 2024, Valsartan pricing in the European market exhibited a mixed trend, with Germany emerging as the most significantly affected region. In July, prices experienced an uptick, driven by positive consumer sentiment and increased purchasing activity. This period coincided with peak seasonal demand, compounded by ongoing capacity constraints and logistical challenges, particularly related to congestion in the Red Sea area, which significantly impacted shipping costs and spot rates. However, the trend shifted in August and September, as several key factors converged to exert downward pressure on prices. The overall economic environment in Europe encountered challenges that weakened consumer sentiment and led to a decrease in domestic demand for pharmaceuticals, including Valsartan. Furthermore, a notable decline in inflation rates, coupled with lower energy prices and favorable base effects, helped ease pricing pressures. These factors contributed to reduced costs for imported Valsartan, prompting suppliers to lower their prices. By the end of the quarter, the price for Valsartan in Germany settled at USD 85,000 per metric ton CFR Hamburg, reflecting the interplay of changing market dynamics and the impact of external economic conditions on pricing strategies.
FAQs
1. Why did Valsartan prices in the USA decline in April 2025 despite the 145% tariff?
The Price Index dropped by 0.99% in April due to strategic frontloading before the tariff took effect. This led to inventory buildup, reduced fresh orders, and price cuts to clear excess stock. Many importers absorbed the initial tariff impact, minimizing production cost hikes.
2. What triggered the sharp price increase in May 2025?
The 90-day tariff suspension led to a surge in imports and procurement, straining freight capacity and causing port congestion. These logistics issues increased landed costs, boosting the Price Index by 3.15% as buyers rushed to secure inventory before the expected tariff reinstatement.
3. Why did the Valsartan Price Index fall again in June 2025?
In June, excess inventory from earlier buying, slowing demand, and easing freight costs led to a 1.05% price decline. Buyers adopted a cautious stance amid tariff uncertainty and soft economic sentiment, while distributors focused on mid-year stock liquidation.
4. What is the price outlook for Valsartan in July 2025 in North America?
Prices are likely to remain soft in July due to weak demand and continued destocking. With excess inventory from Q2 still present, most buyers are expected to delay new orders, reinforcing downward pressure on the Spot Price and Price Index.
