Ibuprofen Prices Decline in April 2023 Due to Weak Downstream Demand

April 2023 saw a decline in the price of Ibuprofen due to sluggish downstream demand from both the domestic and global markets. Market players foresee an improvement in the price trajectory.

Participants in the APAC region attributed the worse market sentiment to sufficient supply and poor downstream product demand. Due to a small decline in Ibuprofen demand in the Chinese market at the end of the first quarter, market participants were forced to reduce spending and focus on the destocking process to maintain their profit margin. Additionally, the worse price trends in April have contributed to regional port congestion, vessel clustering, and a stop in exports. As a result, the market price trend for Ibuprofen remained downward through the end of April 2023. Additionally, when fewer foreign queries were made, the Chinese suppliers made the decision to drop their market rates for Ibuprofen to boost trade.

Through the end of the first quarter, similar lower pricing patterns for Ibuprofen were also observed in the European Market. The lack of demand in the local market compared to prior months caused retailers and suppliers to cut their pricing for Ibuprofen to retain their total profit margins for April. With a combination of weak demand and rising temperatures, natural gas prices decreased in the global market, which led to a decrease in consumption by upstream businesses, further affecting the market situation. After the economy struggled at the beginning of 2023, German inflation surprisingly plummeted in April.

However, dealers and other domestic market participants have been holding back on their quotations due to concerns regarding a decline in inquiries and a minor increase in inflationary pressures. In addition, compared to February, the local supply of Ibuprofen this month was enough to satisfy the terminal market's needs. Ibuprofen's market trend had generally declined due to lower demand from the pharmaceutical and healthcare sectors and ample stocks.

ChemAnalyst predicts that the price of Ibuprofen will grow in the next months due to a constant rise in demand. An advantageous trading environment is likely to be maintained by more trading activity and greater inquiries from the international market.