Global Omeprazole API Prices Nosedive Due to Weak Demand and Tight Supply

Omeprazole API prices have been on the upswing trend since September and continued to rise until the end of November 2022 across the globe. At the beginning of December 2022, Omeprazole API prices started to decline in Asia and European markets.

In China, Omeprazole API prices increased by 1.8% in November before the downturn reached this month owing to a lack of supplies among local producers. However, according to the National Bureau of Statistics, China's manufacturing Purchasing Managers' Index (PMI) declined from 49.2 in October to 48.0 in November, remaining in the contractionary range. As a result of the sustained pressure from COVID-19 control measures, China's manufacturing sector's economic development remained modest. Omeprazole API markets sentiments in China were mixed in December as the country's COVID-19 restrictions were further relaxed, but demand may still be weak. As a result, Omeprazole API prices began to drop from the start of December. Additionally, end-user demand from the international market is still poor as certain regions prepare for the Christmas holidays.

In the same timeframe, France adopted a similar price pattern to China in November. According to the latest PMI data, high inflation caused factory production cutbacks. France Manufacturing Purchasing Managers' Index (PMI) posted 48.3 in November, up from 47.2 in October, signaling another month of deteriorating business conditions for France's manufacturers. Besides this, limited imports from China amid the Covid-19 guidelines resulted in insufficient Omeprazole API stocks among French dealers. Eventually, with the outcome of recently collapsing demand, the easing in supply chain disruption from the first week of December has provided Omeprazole API manufacturers and traders some reprieve. The level of incoming new orders from end-user clients placed with French Omeprazole API traders fell sharply again in December, contributing to the 1.3%  downturn in prices.

ChemAnalyst analysis indicates that global Omeprazole API prices could significantly increase in Q1 of 2023 due to a potential increase in demand from end-user sectors following the end of the holiday season.