Increasing Demand is Expected to Maintain Upward Pressure on Ibuprofen API Prices

In the second half of Q1 2023, Ibuprofen API prices are rising globally due to a rise in demand and orders from end-user producers. Rising raw material costs for all APIs, including Ibuprofen API, have further worsened the competitive market for APIs. Nonetheless, easing inflationary pressures, cheaper freight costs, and declines in energy costs have restored consumer confidence, resulting in many client orders. Suppliers are experiencing large order volumes due to the increasing demand from the end-user pharmaceutical business, which has caused them to raise the price of Ibuprofen API to maintain their profit margin.

Ibuprofen API costs have been going upward in March 2023 as demand has increased. Following the conclusion of the Spring festival in January 2023, the Ibuprofen API market made a strong comeback in February 2023. According to the National Bureau of Statistics' PMI index, which jumped to 51.6 from 49.2 in January 2023, China's industrial activity improved. The output costs increased in February due to increased orders from domestic and international markets. The fresh supply is now available in the Chinese domestic market because of increasing production and operating activities. Manufacturers are quoting the new stock at higher rates in March, supporting the upward pricing trend for Ibuprofen API. As the international market players decide to order in bulk, the increased production will likely influence the market situation positively.

In a similar manner, high CFR prices for Ibuprofen API have also been reported by buyers in Germany and the US as a result of high import bids. In order to replace their outdated inventory with fresh ones, domestic retailers and merchants are concentrating on restocking their supply by making substantial purchases from the Chinese market. Also, there has been a significant increase in purchasing activity from US and German consumers in the end-user pharmaceutical sector.

According to ChemAnalyst, Prices for Ibuprofen API are expected to rise in the upcoming month because of new manufacturing activities and fresh supply to meet demand from the end-user sector.