Levocetirizine Dihydrochloride Prices Plunge in Western Markets Amid Slowing Demand, Economic Woe

In May, the prices of Levocetirizine Dihydrochloride experienced a notable decline in Western markets due to several factors. One key reason was that end users had sufficient stocks on hand, resulting in a decreased need for additional purchases. This cautious behaviour among buyers led to fewer transactions in the market, collectively driving down the prices of Levocetirizine Dihydrochloride.

Recent data indicates an unexpected decline in China's manufacturing activity for May 2024, with the official manufacturing purchasing managers' index (PMI) falling to 49.5 from 50.4 in April, according to the National Bureau of Statistics (NBS). This 3-month low was disappointing, especially following recent strong industrial activity data. The primary cause of this decline was a decrease in new orders and new export orders, both of which returned to contraction after two months of expansion. This downturn has also contributed to the falling prices of Levocetirizine Dihydrochloride.

Meanwhile, in India, the National Pharmaceutical Pricing Authority (NPPA) has reduced retail prices for 41 essential drugs, including Levocetirizine Dihydrochloride, and revised the ceiling rates for seven formulations. Prices have been cut for medications addressing diabetes, body pain, liver issues, antacids, infections, and allergies.

Since China and India are major exporters of active pharmaceutical ingredients (APIs), including Levocetirizine Dihydrochloride, these developments have led to a similar downward trend in Western markets.

The eurozone economy grew more quickly than expected as it emerged from recession, but its growth remains sluggish compared to the robust performance of the US economy. The European Central Bank is anticipated to start lowering eurozone interest rates from their historic highs this week. However, persistent inflation suggests this move will not lead to a rapid series of rate cuts. Preliminary data from Eurostat shows that consumer prices in the eurozone increased by 2.6% year-on-year in May, up from 2.4% in April and exceeding the 2.5% forecast. This marks the first rise in the annual inflation rate since December 2023. This ongoing inflation continues to dampen consumer sentiment, contributing to the decline in Levocetirizine Dihydrochloride prices.

Meanwhile, the US economy saw a slowdown in the first quarter, with growth tapering off and an unexpected rise in inflation. Recent data indicates that US consumer sentiment fell to a six-month low in early May, driven by increasing short-term inflation expectations. This also contributed to the decrease in Levocetirizine Dihydrochloride prices. At its May 2024 Federal Open Market Committee (FOMC) meeting, the Federal Reserve decided to maintain the overnight federal funds rate within the current range of 5.25% to 5.5%.

ChemAnalyst's analysis suggests a potential rebound in Levocetirizine Dihydrochloride prices in the coming months, primarily due to heightened purchases by end-consumers. Central banks in Western regions may contemplate reducing interest rates, which could alleviate financial pressures on consumers and contribute to the upward trajectory of Levocetirizine Dihydrochloride prices. Additionally, an increase in trading activity could further bolster the Levocetirizine Dihydrochloride market.